Canadian Business Groups Clash Over Government Trade Retaliation

The Government of Canada has implemented retaliatory tariff measures and the Regional Tariff Response Initiative (RTRI) to counter a 50% tariff imposed by the United States. While the Treasury Board of Canada aims to defend national economic interests, the response has drawn mixed reactions from industry leaders.

Restaurants Canada expressed support for the government's stance, noting that the measures avoid many priority food products to protect the food supply chain and menu prices. However, the association is seeking targeted exemptions for tariffs on packaging and restaurant equipment during the current consultation period.

Conversely, the Canadian Federation of Independent Business (CFIB) criticized the relief efforts as a patchwork of complicated programs. The CFIB argues that the RTRI is inaccessible to most small businesses due to restrictive employee and sales thresholds. To mitigate the trade war's impact, the CFIB is calling for a simplified program delivered via the Canada Revenue Agency and a small business tax rate cut retroactive to January 1, 2026.

Both organizations are urging the federal government to extend the temporary suspension of the federal fuel excise tax on gasoline and diesel beyond September 7 to help businesses manage rising economic pressures.