Canadian Small Business Roundup: Jobs Take a Hit, $1.5B in Tariff Relief, and the Buy Canadian Boycott Holds Strong

The week ended on a rough note. Statistics Canada released April's jobs numbers this morning and they were worse than expected. Canada shed 18,000 jobs last month, pushing the unemployment rate to 6.9%, the highest it has been in six months. Analysts had predicted a gain of around 15,000 jobs, so the miss was significant.

The breakdown makes the picture look worse than the headline number. Full-time jobs fell by a net 46,700 in April. The only reason the overall loss wasn't larger is that part-time employment picked up 29,000 positions. That's not the kind of mix you want to see. Canada has now lost jobs in three of the first four months of 2026, with 111,000 full-time positions gone since January. The sectors hit hardest are the ones you'd expect: manufacturing, and areas tied directly to U.S. trade exposure. Health care and business services did add jobs, which cushioned the blow somewhat.

For small business owners, this matters beyond the headline. A weaker job market means softer consumer spending in the months ahead, especially on discretionary purchases. It also keeps pressure on the Bank of Canada, which now has to balance a labour market moving in the wrong direction against inflation that is expected to tick up toward 3% in April due to energy costs. The next rate decision is June 10. With numbers like these, a cut is back on the table as a possibility, though most economists still expect a hold.

$1.5 Billion in Tariff Support, Including Help for SMEs

If your business has been absorbing the cost of tariffs on steel, aluminum, or copper inputs, there is a program worth looking into this week. The federal government announced $1.5 billion in new support targeting tariff-impacted industries. The package has two parts.

The first is a new $1 billion Business Development Bank of Canada program aimed specifically at manufacturers that use steel, aluminum, or copper in a significant way and have been hurt by U.S. tariffs. The BDC is marketing this as fast-access financing to keep operations running through the disruption.

The second is an additional $500 million through the Regional Tariff Response Initiative, delivered by Canada's regional development agencies. This one is broader and available to SMEs across all sectors, not just manufacturers. It is designed to help businesses fund market diversification and productivity investments. If you've been putting off a pivot to new markets or a process upgrade because of cash flow pressure, this is the program to look at first.

Both streams were announced this week by Minister Melanie Joly and Minister Evan Solomon. The government framed the announcement as urgent, tied directly to the U.S. decision in early April to adjust tariffs on products containing steel, aluminum, and copper. Check with your regional development agency or the BDC directly to understand eligibility and timelines.

Eight in Ten Canadians Are Still Boycotting American Goods

A new Nanos survey for CTV News conducted between May 3 and May 6 found that 80% of Canadians still believe boycotting American goods and travel to the U.S. is helpful in strengthening Canada's bargaining position with Washington. Fifty-three percent called it "helpful" outright, with another 29% saying "somewhat helpful." Those numbers are essentially unchanged from six months ago.

The reason this matters for business owners is twofold. If you sell Canadian-made products or have been leaning into a Buy Canadian message, consumer sentiment is still firmly behind you and shows no sign of fading. The more interesting question is whether this is becoming a permanent shift in buying habits rather than a protest that will fade when the political situation changes.

There is some evidence it's sticking. American liquor exports to Canada dropped 63% in 2025, according to testimony this week at a U.S. trade committee. Jack Daniel's parent company Brown-Forman reported a more than 60% drop in Canadian sales in the first half of its fiscal year. Those are not numbers that recover overnight.

For businesses that still rely on U.S. suppliers or sell American brands, the consumer mood is a signal worth taking seriously as you think about product mix heading into the summer season.

One Thing to Watch Next Week

The CUSMA formal review is scheduled to begin July 1. That is still seven weeks away, but the political groundwork being laid right now will shape how aggressive each party's opening position looks when the review kicks off. Keep an eye on any signals out of Washington or Ottawa about what each side wants to prioritize. For businesses with cross-border supply chains or customers on both sides of the border, the review process could run for months and introduce another layer of uncertainty on top of what is already a difficult operating environment.

That's the week. More next Friday.