The Canadian Federation of Independent Business is keeping a close eye on the escalating trade war between Canada and the U.S.

Canadian counter tariffs on U.S. products came into effect today, with no sign that trade tensions between the two countries could ease.

Jonathan Galgay of the CFIB says its of great concern to small business owners and all Canadians.

“We’re assessing it….small businesses are quite concerned” says Galgay.

“We’re hearing already from business owners that they’re having challenges with supply. Some of them have contracts signed with companies in the United States, they’re unable to change the contracts and they’re going to have to absorb the costs.”