New Canadian tariffs impact Vermont, New York businesses
WILLISTON, Vt. —
A new 50% reciprocal tariff from Canada has just taken effect, targeting American products like cheese, milk and steel. It’s part of an ongoing trade war between the two countries, and it’s taking a toll on businesses that rely on tourism and imported goods.
Earlier this year, President Donald Trump set a 50% tariff against Canadian products, including things like paper and electronics. Canada’s prime minister, Mark Carney, has responded with equal tariffs on goods like dairy and clothing.
According to political scientist Jeffery Ayres, the rising tensions between the two countries are almost unheard of.
“There’s been a rupture in the Canada-U.S. relationship and the North American economic relationship. We’ve never seen this type of rupture in the relationship,” Ayres said.
It’s not just economics. Ayres explained that comments about renaming Lake Ontario to Lake America and annexing Canada could have a lasting impact on collaboration between the two nations.
Tariff impacts on Vermont businesses
Local businesses in the region have said that even with special deals and campaigns to make Canadians feel welcome, they are noticing fewer visitors compared to just a few months ago.
“The past couple of months, starting probably in May, we definitely were seeing a great uptick in our Canadian visitors, but the past couple of weeks, we haven’t. We still welcome them when they do come,” said Crystal Varney, manager of Plato’s Closet in Williston.
Staff at The Superstore in Williston said they are seeing steady customer numbers, but they are facing higher purchasing fees because of Canadian goods they bring in.
“One thing we are noticing is that a lot of our manufacturers that we use from Canada … the last round of tariffs is actually affecting their prices. So, they’ve just announced a bunch of price changes, which will affect us in the United States as far as what we’ll be buying from them,” said store partner Nate Gobeil.
Gobeil said they are working to support local furniture makers and keep costs down, but that includes sticking with their Canadian partners.
“I’ve always been a big proponent of just trying to keep things local, so as much local stuff that we can do. I consider Canada and Montreal our partners anyways; they’re right there, and they produce great stuff,” Gobeil said.
Across the board, businesses said they are hoping there’s a change soon and that things even out for customers on both sides of the border.
The 50% reciprocal tariffs are now in effect. American tariffs against Canadian goods will go into effect Jan. 1. For a full list of affected products, visit canada.ca.