Small businesses prefer workforce adjustments over layoffs to deal with tariffs: poll
Written by The Canadian Press on March 25, 2025
TORONTO — Small and medium business leaders say they could have to make minor adjustments to their operations in the short term to cope with widespread U.S. tariffs on Canadian goods.
The poll of 50 small and medium enterprise leaders across Canada, conducted by the trade services arm of the Toronto Region Board of Trade, found measures such as reduced hours or hiring freezes are preferred over significant layoffs if those companies are affected by the 25 per cent levy.
However, the World Trade Centre Toronto says 63 per cent of surveyed businesses anticipate cutting or delaying investments in research and development if tariffs significantly affect their revenue streams.
The survey says Canadian small and medium businesses derive an average of 31.1 per cent of their revenue from U.S. sales.
U.S. President Donald Trump’s blanket 25 per cent tariffs on imports from Canada, with a lower 10 per cent rate for energy products, took effect March 4. Two days later, Trump paused the levy’s application to goods and services compliant with the United States-Mexico-Canada Agreement until April 2.
The board’s report recommends policymakers focus on trade diversification, diplomatic engagement and providing innovation incentives, while businesses should prioritize alternative market entry strategies, supply chain flexibility, and operational efficiency improvements.
This report by The Canadian Press was first published March 25, 2025.
The Canadian Press