Trade War Between US and Canada Squeezes Small Businesses as Fuel Costs Climb

September 16, 2026 - 04:48

Small business owners in the United States and Canada say a trade war between their countries is hurting sales while they are also dealing with rising expenses from higher fuel costs.

The combination has left many owners with little room to absorb new charges. Tariffs on goods moving across the border have raised the price of raw materials, parts and finished products. At the same time, fuel costs tied to instability in the Middle East have pushed up shipping and delivery expenses.

For companies that operate on thin margins, the pressure is immediate. A bakery in Ontario that imports packaging supplies has seen its costs jump twice in a single quarter. A furniture maker in Michigan says tariffs on Canadian lumber have forced it to raise prices, and some customers have walked away.

Owners describe a difficult choice. They can pass costs to customers and risk losing business, or they can cut staff and hours to stay open. Many say they are doing both.

Trade groups on both sides of the border warn that smaller firms have fewer options than large corporations, which can shift supply chains or absorb losses. Analysts say the strain could worsen if the trade dispute continues and fuel prices remain volatile. For now, owners are watching every shipment and every bill, hoping for relief that has not yet arrived.