Canadian Small Business Owners Turn to Personal Finances Amid Trade Tensions

Canadian small business owners are tapping into their personal finances to keep their operations afloat amid the ongoing US-Canada trade tensions. A recent survey by Merchant Growth found that nearly two-thirds (65%) of Canadian small business owners have been directly affected by the trade disputes, with increased costs of goods or supplies, lower revenue, and declining customer demand being the most common impacts.

Of those who have been affected, 22% have resorted to using personal credit cards, home equity lines of credit, or personal loans to fund their businesses over the past year. Meanwhile, 28% have cut their own salaries, and 15% have stopped paying themselves entirely.

The trade war has also led to a shift in consumer behavior, with more Canadians shopping from local businesses to support the economy. However, this 'Buy Canadian' movement has had limited impact on small business owners, with only 24% reporting a meaningful benefit.