WASHINGTON, D.C. — U.S. Senator Peter Welch (D-Vt.) released the following statement after the White House confirmed President Trump is expected to put new tariffs on imports from Canada, Mexico, and China on Saturday:
“Donald Trump has just raised prices for every working American. He has threatened jobs and set our nation up for retaliation and years of painful trade disputes. On Monday in St. Albans, Vermont—only 15 miles from the northern border—I brought together Vermont businesses and local leaders to hear directly from them about how another Trump Trade War would hurt our state. It was clear: Donald Trump’s policy of chaos is one that Vermont can’t afford.
“We need a ‘Do No Harm’ approach when it comes to tariffs and trade policy—especially when we’re talking about our biggest trading partner, Canada. Vermont’s and Canada’s economies are closely intertwined, and our families, farmers, and businesses will suffer because of these reckless 25% tariffs. These actions are reckless, counterproductive, and destructive. A trade war is not the answer.”
The White House has not provided the public with an exemption process ahead of the February 1st start date. The White House announced it plans to put a 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on imports from China.
On Monday, Senator Welch convened Vermont businesses and state and local leaders for a roundtable discussion on President Trump’s threats to reignite a trade war with Canada and other U.S. trade allies by imposing dramatic tariffs on goods imported from Canada. Sen. Welch was joined by the Vermont Chamber of Commerce; the Vermont Association of General Contractors; Manufacturing Solutions, Inc.; H20 Innovation; A.N. Deringer, Inc.; Poulin Grain; Green Mountain Power; Vermont State Treasurer Mike Pieciak; Brett Long, Deputy Commissioner, Vermont Department of Economic Development; and Tim Smith, the Mayor of St. Albans. Roundtable attendees spoke about the impact of the tariffs on their businesses and their concerns regarding President Trump’s rhetoric regarding trade since taking office last week.
In many cases, Vermont manufacturers buy imports from Canada to manufacture into products. However, the ability of Vermont’s small manufacturing businesses to absorb a 25% increase in costs on parts or raw materials is limited. Tariffs on Canada and Mexico could result in layoffs or higher homebuilding costs, increased costs of grain for farmers, and more expensive equipment for maple producers.
Tariffs could also increase the cost of utilities for Vermonters. According to preliminary estimates, a 25% tariff on goods from Canada could increase customer rates for natural gas by 10% (based on firm customer rates). Initial estimates suggest electricity rates could increase by 2.5% in Vermont and by 5% for New England wholesale electricity prices.
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Media note: Audio of the event is available upon request.