The threat of United States prices coming on Saturday small business Community, in particular for companies that export goods outside the country.
Small businesses have largely lost confidence since November, the month when US President Donald Trump has been re -elected, according to the Canadian Federation of Independent Affairs (CFIB).
The Small Business Advocacy Group published its latest commercial barometer on Thursday, a survey of member organizations which offers a large jauge of business confidence. The latest report captures feelings of more than 1,000 small businesses interviewed online between January 7 and 14.
The CFIB said that its commercial optimism indicator had decreased for a second consecutive month, lowering the index to 54.6 and marking a loss of five points since November.
The drop in confidence has been particularly pronounced among small export companies, which have reported a drop of 8.1 points in the past two months.
The latest readings come as The Trump administration maintains a threat to impose general prices up to 25% On Canadian products entering the United States on February 1.
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The past few weeks have also seen political troubles boil in Canada, with the announced resignation of Prime Minister Justin Trudeau triggering a race to replace him as a liberal chief that parliament is prorogged.
“The threat of upcoming American rates and political changes in Canada has installed a lot of fog in front of the windshield,” said Simon Gaudreault, chief economist of CFIB and vice-president of research, in a statement.
“Our economy already pays the price of this lack of direction. Uncertainty makes it more difficult for companies to plan in advance and make critical decisions, such as hiring or investment. »»
Gaudreault said that small Canadian businesses need a “signal” of governments that they will be supported in the midst of fears that prices hit the economy over the weekend.
A significant share of companies told CFIB that they have trouble with low demand (52%) and problems related to taxes or regulations (70%).
Andreea Bourgeois, director of the CFIB economy, said in a statement that the “jury is still released” on the success of the two-month federal “tax holidays”, which started in mid-December.
While the proposal aimed to stimulate sales and relieve the costs of Canadians short of money, Bourgeois said that the changes came with a wave of administrative challenges and costs to be implemented.
Certain commercial sectors covered by tax daily have increased long -term confidence according to the CFIB, including the retail and hotel sectors. Most industries remain below their historic confidence levels.
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