Mounting trade tensions with the U.S. are taking their toll on Canada’s small businesses.

A confidence index compiled by the Canadian Federation of Independent Business fell by 5.4 points in July to 56.8, data released Thursday show. That’s the biggest monthly drop since 2011 and the barometer is now at the second lowest level in more than two years.

The decline comes after President Donald Trump’s administration imposed steep tariffs on imported metals, prompting Prime Minister Justin Trudeau’s government to reciprocate. The U.S. is also threatening tariffs on auto imports, and the two countries continue to renegotiate the North American Free Trade Agreement with Mexico.

“New U.S. tariff action on steel and aluminum, Canada’s retaliatory response on a broad suite of U.S. products and deepening global divisions on trade likely contributed to a souring mood among business owners.” CFIB Chief Economist Ted Mallett said in a statement.

The share of firms planning to make capital expenditures in the next few months fell to 51.8 percent in July, the lowest level since October. Confidence was hardest hit in Ontario, the country’s most populous province, where it also dropped to levels not seen since last fall.

Small businesses nevertheless remain relatively resilient, with 44.3 percent of firms saying their general situation was “good,” higher than the historical average