Vermont Businesses Caught in Crossfire of US-Canada Trade War

A trade war between the US and Canada is putting Vermont businesses in a precarious situation. On August 22, the Trump administration imposed a 50% tariff on $20 billion worth of Canadian goods, prompting reciprocal tariffs from the Canadian government. This move has left Vermont caught in the crossfire, with its economy deeply integrated into Canadian supply chains.

Vermont Senator Peter Welch hosted a press conference at Jay Peak to explain the expected economic impacts, warning of dire consequences for both Vermonters and Canadians. He urged the Trump administration to consider the concerns of border states like Vermont that are directly affected by the tariffs.

Many Vermont businesses rely on Canadian partners for services such as dairy farming, custom ski manufacturing, and tourism. Customs fees are driving up operating costs, causing partners to reassess their relationships with American companies. The full effect of the tariffs is expected to take about two months to register.