CFIB warns most firms shut out of relief while Ottawa readies for key US trade review
A newly opened US tariff refund program is offering limited relief to Canadian exporters, but small business advocates say most companies that absorbed the costs will not see any repayment — highlighting lingering gaps in cross-border trade protections.
The refund process stems from a US Supreme Court ruling that struck down certain tariffs imposed under emergency powers, prompting US authorities to begin reimbursing eligible importers.
However, the Canadian Federation of Independent Business says strict eligibility rules will leave many firms on the sidelines. To qualify, businesses must have acted as the “Importer of Record” and directly paid tariffs on goods that fell outside the Canada-United States-Mexico Agreement. The payments must also have been made between February 4, 2025, and February 24, 2026.
While about one-third of small exporters were impacted by tariffs on non-compliant goods, only 26% managed the import process themselves — a requirement to claim refunds.
"While it's good news that some Canadian exporters may get over a year's worth of tariff revenue back, it's not an easy system to navigate. Canadian firms will need a US customs account, a US bank account, and may have to work with their customs brokers to get a refund," said Dan Kelly, CFIB president.
Kelly added that the rebates will not help those businesses affected by sectoral tariffs, including steel and aluminum, cars, softwood lumber or furniture.
"Sectoral tariffs are, sadly, still in place and are having a deep impact on many Canadian small firms. This mess is a reminder that Canada-US trade is not just a big business issue and progress on a renewed CUSMA agreement can't come soon enough,” he commented.
The limited reach of the program comes as Canada prepares for a broader reassessment of its economic ties with the United States.
Prime Minister Mark Carney has launched a new advisory committee on Canada-US relations ahead of a scheduled review of the North American trade pact by July 1. The panel is expected to help shape Canada’s approach as persistent disputes continue to affect industries including steel, aluminum, autos and softwood lumber.
Despite the current agreement keeping roughly 85% of Canadian exports tariff-free, ongoing frictions have exposed vulnerabilities for businesses operating outside its scope. Canadian officials have also signalled that not all trade irritants are likely to be resolved during the upcoming review, framing it as one step in a longer negotiation process.
