The recent imposition of tariffs is likely to create a significant struggle for businesses in Vermont and Canada, causing widespread concern about the potential loss of jobs, revenue, and the survival of small businesses. The economic damage is evident, affecting everything from manufacturing to retail.
The House Commerce & Economic Development Committee reviewed the tariff issue in a hearing last week. Fauna Hurley from Senator Welch's office shared the Senator's opposition to the tariffs; reiterating his efforts to repeal them.
The relationship between Vermont and Canada is deeply rooted in mutual respect and support, and the tariffs threaten to undermine this bond. Vermont's Speaker of the House, Jill Krowinski, emphasized the importance the historical relationship with Canada and the necessity of repairing it. She highlighted the measurable harm caused by the tariffs. The Senate Pro Tempore, Phil Baruth, apologized to Canada and Canadians, expressing regret for the "diplomatic insults" and economic harm caused by the tariffs.
Vermont Secretary of Commerce, Lindsey Curley, discussed the impact of the tariffs on Vermont businesses and the efforts of the interagency tariff team to evaluate and respond to the changes. Tim Tierney, Director of International Trade and Business Improvements, emphasized the difficulties businesses face in tracing the impact of tariffs on their supply chains and the importance of navigating the challenges.
In Vermont, the tariffs have led to increased costs for raw materials and finished products, making it difficult for businesses to maintain their operations and profitability. For instance, Vermont Frames, which relies on Canadian timber, faces a substantial increase in costs due to the tariffs. Consumers will see higher prices, which are likely to impact Vermont's housing market. Other businesses, such as Waitsfield and Champlain Valley Telecom, also rely on parts and equipment from Canada.
Similarly, a local ski manufacturer, Renoun Skis, is grappling with the compounded costs of tariffs on both sides of the border because they import raw materials from the US but manufacture their products in Canada. The increased costs will lead to higher prices for consumers, reducing demand and impacting on the company's growth and revenue potential.
Retailers like Outdoor Gear Exchange (OGX) and Burton are also feeling the pinch. OGX expects higher goods costs, which may raise prices for consumers, potentially reducing sales and affecting downtown Burlington's vibrancy. Burton, a major employer in Vermont, faces the challenge of navigating increased costs and reduced consumer demand, which could impact its workforce and operations.
The sentiments shared by those who spoke from Canada highlight the deep concern and frustration with the tariffs. The Canadian steel industry, represented by the Canadian Steel Producers Association, is facing layoffs and increased costs, which could lead to cascading economic decline. The maple syrup industry, which relies on cross-border trade, is also struggling with increased costs for equipment and packaging, impacting producers, packers, and distributors alike.
Forrest Harger, Vice President of Burton, summarized the overall sentiment of the business community well when sharing about recent meetings with the other retailers and the mayor’s office; everyone in downtown Burlington, candidly, is struggling. Not just from this, but the construction on Main Street and issues around public vibrancy are impacting the city. “We just we don't need another challenge right now," he said, "and anything that this group and the broader group in this building can do to help us through this is appreciated.”
In conclusion, the tariffs have created a significant struggle for businesses in Vermont and Canada, leading to increased costs, potential loss of jobs, and revenue impacts. The sentiments shared by both sides emphasize the importance of maintaining the historical bond and working together to weather the storm.