More than half of B.C. small businesses have scaled back U.S. activity: survey

Uncertainty amid a trade war is having a big impact on small businesses in B.C., according to a new survey.

A new survey found 66 per cent of British Columbian small businesses are cutting back on U.S.-related activity.

According to “The Trade War survey” by Merchant Growth, local businesses are pulling back from U.S. suppliers and customers to dodge the next swing in policy.

From Jan. 12 to 23, 2026, Merchant Growth says it surveyed 103 businesses in Canada that received funding from the company. The national data shows 57 per cent had scaled back their U.S. business while one in ten have cut ties with the United States altogether.

The data shows 45 per cent of B.C. small businesses said tariffs and trade disruptions decreased their profit margin over the past 12 months.

The survey also found about one in four in B.C. said they spent between $5,000 and $25,000 in additional costs due to tariffs and trade-related fees over the past year, while 28 per cent said they spent between $26,000 to $100,000.

“They have lived with the level of volatility that we’ve not seen in years,” said Joe Cote, the chief growth officer at Merchant Growth.

“Covid was a huge impact, but not that long thereafter when they started to kind of get back to a new normal. Now we’re hitting them with nonstop tariff threats.”

Cote went on to disclose that after a year of absorbing costs, more than a third of small businesses in B.C. said they didn’t pass any of the added costs to customers, while 53 per cent said they plan to raise prices in the next six months.

As Canada enters negotiations on a new trade agreement with the United States and Mexico, Cote fears that the deal may not be favourable for small businesses and business owners are bracing for potential impacts.

The survey found that cost-cutting measures and price increases are top priorities for this year.

The data shows in B.C. that 53 per cent will cut discretionary spending, such as marketing, travel and subscriptions, over the next six months with the same number raising prices.

According to the survey, 37 per cent will take on additional financing, 11 per cent plan to reduce their workforce and five per cent pausing hiring over the next six months.