Half of Canadian small businesses do not consider the U.S. a reliable trading partner, according to a new survey by the Canadian Federation of Independent Business (CFIB). This sentiment is driven by the on-again, off-again tariffs and their unpredictable impact on trade relations between the two countries. Simon Gaudreault, CFIB’s chief economist and vice-president of research, emphasized the need for more certainty in the trade environment. "Businesses need more certainty, it's simple as that," Gaudreault stated.

The survey highlights that Canadian small businesses are shifting their suppliers and investments to domestic and international markets outside of the U.S. due to the disruption caused by these tariffs. One business owner quoted in the survey expressed that the unpredictability of the current situation makes surviving the pandemic seem like a "walk in the park." As April 2 approaches with reciprocal tariffs set to take effect, there is uncertainty about where the U.S.-Canada trade war will head in the long term.

For some businesses, making drastic changes is not feasible, but others are taking actions to offset the current impacts. The shift towards domestic and international markets other than the U.S. is a strategic response to this uncertainty, aiming to reduce dependency on a market that has become less predictable.