President Trump has decided to go forward with imposing 25 percent tariffs on goods from Mexico and Canada, an action that was previously put on hold. The announcement was made via his social media platform, Truth Social, on March 4. The decision comes after Trump expressed concerns about drugs coming into the United States from these countries.
Businesses across the United States, including in Vermont, are gearing up for the impact of these tariffs. Vermont Gas, which imports most of its natural gas from Canada, is evaluating how these tariffs will affect their customer rates. The uncertainty of the amount that will be levied on gas imports adds to the challenge of preparing for the financial implications.
Trump had initially threatened tariffs on goods imported from various countries, including Mexico, Canada, and China. While he backed down on the tariffs concerning Mexico and Canada earlier, he did impose a 10 percent additional levy on Chinese goods. This decision will also see another 10 percent added to Chinese goods on the same date, March 4.
State Treasurer Mike Pieciak and Vermont’s congressional delegation have been working to assess the potential impact of these tariffs on the state’s economy. Canada is Vermont’s largest trading partner, with goods worth $2.6 billion being sent to the state annually. The tariffs could significantly disrupt the trade relationship between the two regions.
Businesses in Vermont are already feeling the effects of these impending tariffs. High Mowing Organic Seeds, a company based in Wolcott, has been procuring more seed from Canadian sources in anticipation of the tariffs. The fear of increased costs and the strain on U.S.-Canadian relations are driving these proactive measures.
The threat of tariffs has also affected the tourism industry, with Canadians canceling trips to Vermont. Additionally, Vermont’s maple industry, which relies heavily on exports to the U.S., could be impacted by these tariffs. This includes companies like Butternut Mountain Farm and Maple Grove, which package Canadian syrup for sale in the U.S.
Cory Krieg, a maple syrup distributor, expressed concern about the potential impact of tariffs on the industry. He highlighted that Canada exports a significant portion of its syrup to the U.S., and any tariffs could lead to price fluctuations in the market. The uncertainty surrounding the implementation of tariffs has left many in the industry on edge.
The looming tariffs are creating a sense of unease among businesses and residents alike. The anticipation of increased costs and potential disruptions in trade relations is causing anxiety across various sectors. As the deadline for the tariffs approaches, many are left waiting anxiously to see how these decisions will play out.
Anne Wallace Allen, who covers business and the economy for Seven Days, brings a unique perspective to the unfolding situation. With a background that includes international experiences and a deep understanding of the local business landscape, her insights shed light on the broader implications of these tariffs. As businesses and communities brace for the impact, her reporting provides a critical lens through which to view the unfolding events. The intricate web of relationships, economic dependencies, and political dynamics at play underscores the complexity of the situation, leaving many wondering about the future of trade relations in the region.
