Canadian small businesses appear to be weathering the tariff storm so far, with 71 per cent saying they are currently doing either “great” or “OK,” according to

a recent survey

by

Canadian Imperial Bank of Commerce

, and 78 per cent said they are cautiously optimistic about what the future holds.

“Canadian small businesses are the backbone of our economy and their resilience in the face of ongoing uncertainty demonstrates remarkable determination, adaptability, and commitment to their ambitions,” Andrew Antoniadis, senior vice-president of business banking and cash management at CIBC, said in a release.

“By building a strong financial foundation, small businesses are better equipped to navigate short-term challenges while also achieving long-term success.”

Canadian small businesses have had a tumultuous 2025 as United States President Donald Trump levied

tariffs on Canadian imports

, but the rules on what’s tariffed and how steep the charges are keep changing.

The U.S. government has imposed an Aug. 1 deadline to form a trade with Canada.

To address tariff issues, 26 per cent of small businesses are looking at cost-saving measures, while 25 per cent are emphasizing the “made in Canada” portion of their products.

Despite their optimism, 56 per cent are concerned about the changing dynamics surrounding international trade, and the same percentage are concerned about attracting new customers, while 55 per cent are worried about managing higher costs and 31 per cent about managing supply chain issues.

This echoes a similar report by the

Canadian Federation of Independent Businesses

, which said most Canadian small businesses are absorbing tariff-related cost increases.

Nearly 70 per cent of Canadian businesses have absorbed the entire tariff cost on imports, with a median cost of $9,000. On exports, 63 per cent of businesses swallowed the added costs or shared them with their U.S. partners, with a median cost of $25,000.

“If no deal is reached by Friday, Canada must immediately return the revenue collected from our counter tariffs to small businesses to help them weather the ongoing harm and massive economic uncertainty,” CFIB president Dan Kelly said in a release.

“Many have been holding out, delaying critical decisions, hoping for enough certainty to plan for the future. Without an immediate deal, many are facing some terrible choices, including laying off key workers.”

 Sign up here to get Posthaste delivered straight to your inbox.


Air Canada’s shares

plunged on Tuesday after the airline reported a severe drop in U.S. travel in response to U.S. President Donald Trump’s trade war.

The airline reported net income of $186 million for its second quarter, down 54.6 per cent from a year ago.

On top declining travel to the U.S., the airline is also dealing with less travel to the Middle East, and increased competition in China.

News of the drop had shares falling more than 14 per cent by Tuesday afternoon.

Read more.

  • 9:45 a.m.: Bank of Canada interest rate announcement and monetary policy report
  • 2:00 p.m.: U.S. Federal Reserve interest rate announcement
  • Today’s Data: ADP U.S. national employment report for July, U.S. second quarter real GDP
  • Earnings: Microsoft Corp., Meta Platforms Inc., HSBC Holdings plc, Canadian Pacific Kansas City Ltd., Agnico Eagle Mines Ltd., Ford Motor Co., eBay Inc., Morningstar Inc.

  • Bank of Canada expected to hold rates on Wednesday, amid sticky core inflation
  • Freedom Convoy lawyer dropped as a bank customer after cryptocurrency transactions
  • Ottawa’s counter tariffs could cost Canadians $9 billion this year — or $550 per household, warns think tank
  • Canadian dollar’s rise to be tamed by rate cuts, says top forecaster

There are several ways for Canadians to protect themselves from potential scams, including being wary of suspicious emails or texts, a password management system, avoiding links in memes and other social media posts and enabling two-factor authentication.

Read more here

for tips on keeping you safe from scams.

Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s

Financial Post column

can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his

mortgage rate page

for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s

YouTube channel

for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at 

posthaste@postmedia.com

.

  • Canada commits funding to AI safety effort
  • Toronto landlords are chasing tenants with incentives

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here