New CANADA Act Exempts Small Businesses from Emergency Import Tariffs to Cut Costs

The new “CANADA Act” (officially the Creating Access to Necessary American-Canadian Duty Adjustments Act) is short, sweet, and focused on cutting costs for small businesses that rely on imported goods. Simply put, this legislation creates a targeted exception to those extra import taxes—called duties—that were put in place following the national emergency declared back in February 2025 (Executive Orders 14193, 14197, and 14226).

The Tariff Relief Lifeline

If you’re running a small business and you import goods, this bill is designed to give your bottom line a break. When the President declared that national emergency, it triggered a series of extra tariffs on certain imports. For larger corporations, those duties are still on the table. But the CANADA Act carves out a specific exemption so that “small business concerns” no longer have to pay them when bringing in goods for their operations (Section 2). This means immediate financial relief for thousands of smaller companies that have been absorbing these extra costs.

Who Qualifies as "Small"?

The bill isn't vague about who gets this pass. It directs the use of the existing definition of a “small business concern” found in Section 3 of the Small Business Act (Section 2). This is a good thing because it relies on established federal criteria—like revenue caps or employee counts specific to different industries—rather than creating a brand-new, confusing definition. If you already qualify for Small Business Administration (SBA) programs, you likely qualify for this tariff exemption. For a local auto repair shop importing specialized tools or a craft brewery importing specific hops, this change could translate directly into lower operating expenses.

Real-World Impact: Lower Prices, Less Paperwork

When a small business doesn't have to pay these extra emergency duties, they have three main choices: reinvest the savings, lower prices for consumers, or increase wages. This targeted relief helps level the playing field against larger competitors who might be better equipped to absorb high import costs. While the U.S. Treasury will collect less revenue from these specific emergency tariffs, the trade-off is supporting the economic stability of small businesses, which are often the most sensitive to sudden increases in operational costs. This bill is a clean, direct approach to reducing the financial strain on the backbone of the economy without wading into broader, more complex trade policy debates.