Canadian small business owners tapping personal credit as trade war bites
In response, 22 per cent of owners have already raised prices, 15 per cent have delayed or cancelled a planned investment, and 11 per cent have reduced staff or hours. Looking ahead to the next six months, 22 per cent plan further price increases, 11 per cent plan to defer investment, and only four per cent plan to hire additional staff.
Most strikingly, 14 per cent of all owners plan to wind down their business in the next six months. That figure rises to 26 per cent among owners whose business is performing worse, and to 19 per cent among those directly affected by trade tensions, compared to just six per cent of owners who have not been impacted.
The broader economic outlook for Canada in 2026 remains subdued, with trade uncertainty continuing to weigh on business valuations, consumer spending, and investment planning across the country.
The ‘Buy Canadian’ bump isn’t reaching most owners
Consumer sentiment has shifted. More than half (56 per cent) of Canadian consumers say they have shopped more from Canadian small businesses over the past 12 months than in previous years – consistent with the same finding in 2025 – and 24 per cent say they have shopped much more, up from 20 per cent a year earlier.
The top motivations are supporting the local economy (75 per cent), supporting Canadian jobs (69 per cent), and U.S. tariffs (55 per cent).
