A proposed 50% U.S. tariff on goods previously protected under CUSMA (Canada-U.S.-Mexico Agreement) is threatening a sharp hit to Canadian small exporters, with new CFIB survey data showing 40% of those selling to the United States believe their products would be caught by the measure. More than three-quarters of affected firms expect revenue to fall, and about one in three expect to lose at least half their sales. Concern is widespread across exporters, with more than nine in 10 saying they are worried and 32% describing themselves as extremely concerned. CFIB President Dan Kelly said few small firms can absorb a 50% tariff or pass it through to customers without losing competitiveness. The industries most exposed include machinery and equipment, wood and forestry products, plastics and packaging, agricultural and food goods, and arts and creative products. A separate Merchant Growth survey suggests the uncertainty is already changing behavior across the broader small business sector, with 55% cutting spending, 25% delaying hiring and 25% raising consumer prices. Canadian officials, including Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette, are in Washington seeking a deal before the August 19 deadline as talks continue with U.S. Trade Representative Jamieson Greer.