The ongoing trade dispute between Canada and the U.S. has been causing significant challenges for small businesses in British Columbia over the past year.
A recent study conducted by Merchant Growth reveals that nearly half of the businesses surveyed, 45%, have experienced a decline in their profit margins. Additionally, 28% of these companies have faced extra expenses ranging from $26,000 to $100,000 due to tariffs and trade-related charges.
Despite the impact on their finances, 38% of the surveyed businesses have refrained from passing on these additional costs to their customers so far. However, looking ahead, 53% of them are considering raising prices within the next six months to offset the profit losses. Other strategies being considered to cope with rising trade expenses include cutting down on non-essential spending, seeking additional funding, reducing inventory levels, dipping into personal savings, or downsizing their workforce.
Moreover, the study shows that a significant number of businesses, 66%, have opted to reduce their dealings with American companies amidst the ongoing trade tensions.