July 16,2025
The Canadian Press
A business advocacy group is urging Ontario to rethink its support programs for auto-related businesses facing the fallout of tariffs and ongoing economic uncertainty.
The Canadian Federation of Independent Business (CFIB) released a report today highlighting concerns that the current structure of these programs is leaving many small businesses behind.
Based on a survey of 187 small and medium-sized businesses in the automotive sector—including parts suppliers and repair shops—the CFIB found that tariffs are already taking a toll. On average, these businesses have seen a 13% drop in revenue, and half have either postponed or cancelled investments due to the uncertainty stemming from the Canada-U.S. trade tensions.
Ontario currently offers programs aimed at helping the auto sector, including the Ontario Automotive Modernization Program, which assists parts suppliers in upgrading equipment, and the Ontario Vehicle Innovation Network, which supports research and development.
While CFIB acknowledges the programs were launched with good intentions, it says few small businesses intend to use them, and more than one-third of businesses surveyed are not eligible to apply.
The Ontario government, however, says its programs have already benefited hundreds of businesses. One has supported more than 600 companies since 2019, while the other has backed 215 projects since 2021.
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