BY SHONDELL SABAD, SENIOR STRATEGIC ADVISOR AT THE ALBERTA ENTERPRISE GROUP

There’s been a lot of attention on Ottawa’s Building Canada Act (Bill C5) lately.  While it makes for flashy headlines, the reality is this: Canada’s economy runs on small and mid-sized enterprises (SMEs).  This is where much of the action happens and where Canadians work, innovate, and thrive.

And yet, the latest numbers tell a troubling story. Statistics Canada reports that real GDP declined 0.4% annualized in Q2 2025, while the U.S. economy grew by 3.3% over the same period.  This gap won’t be fixed by more headlines about megaprojects; it will only be fixed by supporting SME growth.

That’s why two recent pieces are so important:

1. The Canadian Federation of Independent Business (CFIB) warns that nearly 1 in 5 small businesses facing tariff costs won’t survive more than six months if nothing changes. Read CFIB’s piece here.

2. In the Edmonton Journal, Mike Martens of ICBA Alberta (and a proud AEG member) shows how Ottawa’s steel tariffs are kneecapping Alberta’s construction and manufacturing sector, hurting contractors, driving up costs, and putting jobs in jeopardy. While Mike speaks specifically to steel, the same logic extends to other tariffs on raw materials, such as aluminum, which also add pressure on Alberta businesses.  Read Mike’s article here.

Both articles make it clear: tariffs don’t just disrupt trade flows – they hit small businesses hardest. And when SMEs struggle, so does Canada’s economy. For Alberta, the impact is direct – higher costs, weaker competitiveness, and lost opportunities for growth. This isn’t just about contractors – it’s about Alberta’s competitiveness and Canada’s overall prosperity. When tariffs drive up costs here, it weakens our ability to attract investment, build critical infrastructure, and grow the industries that sustain families. Ottawa must take action and be mindful of the economic health of the entire country – including Alberta – when setting tariff policy.

At AEG, we continue to advocate for responsible, pro-growth policy that recognizes the real drivers of our economy: small business owners, their employees, and the communities they sustain.

The future of Canada’s economy will not be written in government press releases.  It will be built by SMEs if we give them the chance to succeed.