Calgary, Alberta – August 20, 2025 – Canadian small and medium-sized enterprises (SMEs) are grappling with the dual pressures of escalating U.S. tariffs and a volatile global economy. These challenges are particularly pronounced in Alberta, where industries such as agriculture, manufacturing, and energy are heavily intertwined with U.S. trade.
Impact of U.S. Tariffs on Canadian SMEs
In March 2025, Canada responded to U.S. tariffs by imposing a 25% levy on $30 billion worth of American goods, including products like orange juice, peanut butter, wine, and spirits. This move has significantly affected Canadian importers. According to the Canadian Federation of Independent Business (CFIB), nearly 70% of small importers report absorbing the full cost of these retaliatory tariffs without adjustments from U.S. suppliers.
The Alberta business community is particularly vulnerable. A report from the Alberta Enterprise Group highlights that small businesses in the province, especially those reliant on U.S.-Canada trade, are facing increased costs and uncertainty due to these tariffs.
Global Economic Instability and Its Effects
Beyond trade tensions, global economic instability is further straining Canadian SMEs. The Bank of Canada notes that rising trade tensions and high uncertainty are negatively impacting business investment and consumer confidence. In Alberta, sectors such as agriculture and manufacturing are experiencing increased costs and supply chain disruptions, leading to concerns about job security and economic stability.
Looking Ahead
The outlook for Canadian SMEs remains uncertain. While some businesses are adapting by seeking new markets and suppliers, the cumulative effects of tariffs and global economic instability pose significant challenges. SMEs are encouraged to engage with trade organizations and government programs designed to support businesses during these turbulent times.
For more information on how to navigate these challenges, visit the CFIB’s resources on tariffs and trade.
Canadian Federation of Independent Business | CFIB
