"Tariffs, counter-tariffs and threats of additional tariffs are taking a significant toll on business optimism," said the report by economists Andreea Bourgeois and Simon Gaudreault.
The results point to stagflation with expected price increases over the next year rising to 3.7% in March from 3% in February. Insufficient demand was cited by 59% of respondents, up from 49% in November when Donald Trump won the presidential election.
Full-time hiring plans turned negative on balance in March with 19% of respondents seeing lower payrolls versus 11% predicting an expansion.
Hospitality, manufacturing, transportation and agriculture showed the worst sentiment readings, all coming in at about 20 on the month. (See: MNI INTERVIEW: Trump Risks North American Recession- NS FinMin)
The CFIB report is based on more than 1,000 responses to make it richer than a quarterly survey collected by the Bank of Canada. About one in five respondents said tariffs are having a “strong negative impact” and another two in five said there is a “slight” impact.
