The Week in Canadian Business — April 21–25, 2026

Let's start with the good news. As of April 20, the federal government set the federal fuel excise tax on gasoline and diesel to zero until September 7, a move expected to lower regular gasoline prices by 10 cents per litre and diesel by 4 cents per litre. The policy was presented as a response to fuel-price pressures tied to Middle East conflict and global oil disruptions. For businesses running delivery vehicles, construction equipment, or any kind of fleet, that saving adds up fast over a summer. It's a temporary measure and the tax comes back in September, but it's real cash back in your operating budget for the next four months.

Worth noting: some drivers are already reporting that pump prices haven't dropped the full amount. The savings depend on whether the retailer passes them through, so it's worth keeping an eye on what you're actually paying versus what you should be.

The Political Picture Got a Bit Clearer

Earlier this month, the Carney Liberals secured a majority in the House of Commons after winning three byelections in Ontario and Quebec, with the next scheduled general election not until October 2029. For business owners, the practical effect is reduced parliamentary uncertainty in the near term. Confidence votes and snap elections are less of a concern for now. That said, a majority doesn't mean policy is locked in, and the government will still face pressure on its trade and economic decisions as circumstances change.

The Tariff Grind Continues

The U.S.-Canada trade situation isn't getting dramatically better or dramatically worse right now. A recent CFIB survey puts some numbers to what most business owners are already feeling. Higher expenses were cited by 63% of small businesses as a top impact, reduced profits by 53%, lower revenue by 48%, supply chain disruptions by 42%, and paused investments by 36%. These numbers reflect sustained pressure rather than a single shock, and they haven't moved much.

One concrete item for importers: as of April 20, Canadian businesses that acted as the Importer of Record and paid U.S. tariffs on non-CUSMA compliant goods between February 4, 2025, and February 24, 2026, may be eligible for refunds. If your company absorbed those costs during that window, it's worth looking into. The CFIB has details on the process.

Businesses Are Actively Finding New Suppliers

About one-third of Canadian SMEs have already moved away from U.S. suppliers or customers, with another third considering it. Of those seeking alternatives, 67% are turning to Canadian partners first, 34% to the EU, and 21% to Mexico. The shift is real and it's picking up pace. If you haven't had this conversation with your procurement team yet, you're starting to fall behind the businesses that have.

On the broader economy, the impact from tariffs has not been evenly distributed. Manufacturers in steel, aluminum, motor vehicles, and softwood lumber took the hardest hit, with Ontario and Quebec facing the steepest tariff exposure of any province. Most other sectors have felt the ripple effects without absorbing the direct blow.

Keep an Eye on Wednesday

The Bank of Canada announces its next interest rate decision on Wednesday, April 29. The current policy rate sits at 2.25%, and Bay Street analysts largely expect the bank to hold rates steady through 2026. The main complication is energy costs. Higher fuel prices are expected to push headline inflation up in the coming months, but the Bank has indicated it will look past a short-term spike unless it starts feeding into broader prices. No dramatic move is expected Wednesday, but the accompanying statement will signal how the Bank is reading the economic situation right now. If you're planning a major capital purchase, lease renewal, or refinancing before Q3, it's worth a read.

That's the week. More next Friday.