Canadian businesses adjust hours, hiring to cope with US tariffs, facing potential R&D cuts.

Small and medium Canadian businesses are making minor adjustments like reduced hours or hiring freezes, rather than layoffs, to cope with US tariffs on Canadian goods. A poll of 50 business leaders shows these measures might only last six to 12 months. With tariffs causing financial strain, businesses anticipate cutting research and development investments if revenues decline. The report recommends policymakers focus on trade diversification and innovation incentives, while businesses should explore new markets and improve efficiency.