Vermont Braces for Trade War Fallout as Trump’s Tariffs Loom
As a fuel truck rumbled through the picturesque town of St. Albans, delivering propane to homes on a crisp January day, the looming specter of President Donald Trump’s tariff policy cast a shadow over Vermont’s economy. Businesses like Vermont Frames, a Starksboro-based timber framing company, were on edge as they faced the prospect of higher costs and uncertain futures.
Kevin Moyer, the owner of Vermont Frames, revealed that the company heavily relied on Canadian wood, particularly Douglas Fir timber, for its handmade frames. With tariffs of 25% on Canadian goods set to kick in, Moyer found himself bracing for impact as he anticipated paying a premium for the essential wood, which would undoubtedly dent his profit margins.
Reflecting on the harsh reality of the situation, Moyer lamented, “There are certainly going to be headwinds. We won’t be able to grow as much. I won’t be able to hire as many people as I want to. It hurts. It didn’t have to be this way.”
Vermont Businesses Tread Uncertain Waters Amid Tariff Turbulence
Moyer’s sentiments resonated with many Vermont business owners who found themselves in a similar predicament, grappling with the repercussions of Trump’s trade policy. The state, heavily reliant on trade with Canada, faced an uncertain future as the impending tariffs threatened to disrupt the flow of over $2.5 billion in goods imported from its northern neighbor annually.
State Treasurer Mike Pieciak expressed concerns about the swift and unprecedented nature of the tariff policy, highlighting the potential ripple effects on Vermont’s economy. With the vagueness surrounding which Canadian goods would be subjected to tariffs, uncertainty loomed large, casting a shadow of doubt on the state’s economic outlook.
“All of this is happening so quickly and in a way that’s not consistent with past practice,” Pieciak remarked. “You worry that the uncertainty itself is going to bring about an economy that is not as confident and therefore not growing as robustly.”
Impacts of Tariffs Ripple Through Vermont’s Key Sectors
Amid the flurry of uncertainties, Vermont’s energy sector emerged as a focal point of concern. The state’s heavy dependence on Canadian imports for electricity and fossil fuels raised alarms as the 10% tariff on Canadian energy loomed large. Rebecca Towne, CEO of the Vermont Electric Cooperative, voiced apprehensions about the potential cost implications, citing a projected $2 million in extra costs for the cooperative in 2025.
Towne’s concerns were echoed by Dylan Giambatista, public affairs director at Vermont Gas Systems, the state’s sole natural gas distribution company. With over 50,000 customers reliant on Canadian gas imports, the impending price hikes due to tariffs posed a significant threat. However, Giambatista emphasized the need for federal guidance to navigate the murky waters of tariff implementation and mitigate potential rate impacts.
Alison Hope, executive director of the Vermont Maple Sugar Makers’ Association, shed light on the far-reaching effects of the tariffs on the state’s sugaring industry. The tax threatened to increase costs on imported equipment for local sugar manufacturers and make maple products pricier, signaling a challenging road ahead for the industry.
“It’s all so intertwined that I don’t see in the long run how a 25% Canadian tariff could be favorable,” Hope remarked. “It’s going to have an impact in a number of different ways.”
As Vermont braced itself for the fallout from Trump’s tariff policy, the state found itself navigating uncharted territory, with uncertainty looming large and businesses scrambling to adapt. The resilience and fortitude of Vermont’s business community would be put to the test as the trade war unfolded, reshaping the economic landscape in ways both anticipated and unforeseen.
