The level of business openings has also held so far in 2025, official data shows
Doing business is Canada has been pressured in 2025 thanks to trade and economic challenges, but business closures remain stable according to official figures.
Statistics Canada’s newly released data for April shows that the business closure rate was slightly lower month-over-month, easing 0.1 percentage points to 4.7% having increased by the same rate in March.
Meanwhile, the opening rate of 4.8% was steady having gained 0.1 percentage points in March, giving a slight increase in active businesses. Health care and social assistance and accommodation and food services were drivers of this increase while many other sectors saw slight declines.
However, those businesses that are reliant on US demand have suffered more with sectors such as mining, quarrying, and oil and gas extraction, and manufacturing saw a 1.9% decline in active businesses between January and April 2025, compared to 0.7% for other sectors.
But tariffs are not the only factor, as the decline for US-reliant businesses started before President Trump’s April announcement, “suggesting that other factors such as shifting global demand or domestic industry dynamics could also be at play,” the report states. Further decline from tariff impact could be ahead.
Canadian businesses remain under pressure, but the Canadian Federation of Independent Business has welcomed the announcement by Mark Carney to significantly reduce tolls on the Confederation Bridge and regional ferry routes from August 1. The bridge toll falling from more than $50 per crossing to $20 will benefit commercial vehicles.
“This is an important moment for small businesses in Atlantic Canada,” said Frédéric Gionet, CFIB’s Director for the region. “For too long, high tolls on critical transportation links have made it more expensive to do business, move goods, and connect communities. Today’s announcement represents meaningful relief.”
Meanwhile, the CFIB is calling on party leaders in Newfoundland and Labrador to cut taxes for small businesses including lowering the small business tax rate to 1% and increasing the small business threshold from $500,000 to $700,000 and indexing the threshold to inflation annually, along with eliminating the 15% sales tax on insurance.
“With eight out of 10 business owners urgently seeking tax and cost relief, it is critical that political leaders address the pressing issues of high taxes, costs, and regulatory burdens that are holding back our members,” said Jonathan Galgay, Director of Legislative Affairs at CFIB. “Cutting costs can mean keeping staff, avoiding price hikes, and keeping small businesses strong. That helps everyone.”
