The trade war between Canada and U.S. has now been raging for a year, and almost half of all small businesses in B.C. report that it is hurting their bottom lines.

According to a new survey by Merchant Growth, 45 per cent of companies say their profit margins have decreased. Over one in four — 28 per cent — say they have incurred an additional $26,000 to $100,000 in additional costs due to tariffs and trade-related fees.

Joe Cote, chief growth officer at Merchant Growth, told 1130 NewsRadio some of the results were shocking, but not unexpected.

“There are thousands of people that feel a real impact and these are people that live in our local communities,” he said. “We’re not talking about major conglomerates that are raking in millions and millions of dollars per month.”

The volatility of trade over the past few months has had major implications for business, Cote said, but a significant number of businesses — 38 per cent — have thus far avoided passing on any added costs to customers. Soon that could change.

Going forward, 53 per cent say they plan to raise prices in the next six months to make up for lost profits.

“These are business owners that don’t take that decision lightly,” Cote said. “There is a level of sensitivity when you increase prices. That competitive advantage that small businesses don’t have when it comes to purchasing power, to be able to bring in as much supply on a lower scale, it impacts their margins more and quicker.”

“If anything this is a moment of a standing ovation to small business owners that are the heroes of our local communities.”

But Cote said raising prices is not enough. Canadians need to divert their elective spending to help keep these businesses afloat.

Other ways companies plan to deal with increased trade-related expenses include cutting discretionary spending, taking on additional financing, reducing inventory, using personal savings, or reducing their workforces.

Meanwhile, 66 per cent of those surveyed say they have scaled back on doing business with U.S. companies.

On the north side of the border, Cote said there are things the BC Government can do that will help small businesses’ bottom lines.

“If we want to really materially support small businesses, we need to look at the things that impact them directly,” he said. “On a cost line basis we talk about payroll, insurances, rent and utilities, many of which governments can actually enact changes immediately.”

This can look like tax exemptions, subsidies, or suspending of increases in rates.

“It’s not that I would say the BC small business tax rate is not competitive,” he said. “But it doesn’t mean we shouldn’t do anything.”

He said the key is recognizing that business owners have bore the brunt of the trade war.

“It is a partnership in this economy,” he said. “Small businesses can continue operate and keep prices at this level if Canadian consumers are shopping local.”

– With files from David Nadalini