Vermont Small Businesses Feel Trump’s Canadian Tariffs
President Donald Trump’s recent tariff threats against Canada have begun to impact small businesses in Vermont, causing concerns about financial losses and changes in consumer behavior. The effects have been felt across various industries, from spirits distilleries to resorts, sparking worries about higher prices, reduced tourism, and strained business relationships.
Distilleries Struggle with Stalled Shipments
Ryan Christiansen, president and head distiller at Caledonia Spirits in Montpelier, VT, shared his frustration over a shipment of spirits sitting on a dock for a month. The order was canceled by the Société des alcools du Québec following Trump’s tariff announcement. This setback came during the slow season for the business, causing financial strain and missed opportunities for revenue.
Christiansen highlighted the strong commercial ties between Vermont and Canada, with millions of dollars in goods exchanged annually. The close proximity and shared borders between the two regions have made small businesses in Vermont vulnerable to the ripple effects of international trade disputes. Despite a temporary reprieve on some tariffs, uncertainties linger over the future of business transactions with Canadian partners.
Tourism Concerns and Creative Solutions
Steve Wright, president of Jay Peak Resort near the Canadian border, noticed a decline in spending from Canadian tourists during critical weeks due to tariff-related uncertainties. The impact was particularly evident during Quebec and Ontario break weeks, traditionally peak periods for Canadian visitors. Reduced border crossing hours and potential price increases on goods pose additional challenges for businesses relying on Canadian tourism.
To address the drop in visitor traffic, businesses like Artisans Hand Craft Gallery in Montpelier are exploring proactive measures to attract Canadian customers. Bill Butler, a co-owner of the gallery, proposed special promotional deals to incentivize Canadian tourists to visit the city and support local businesses. The initiative, dubbed “Canada Days,” aims to maintain a positive relationship with Canadian visitors and sustain economic activity in the region.
Concerns Over Price Hikes and Market Disruption
Sam Guy, owner of Guy’s Farm & Yard in Morrisville, raised concerns about potential price increases on imported goods due to tariffs. Products like wood shavings, wood pellets, peat moss, and animal feed sourced from Canada could see higher costs passed on to consumers. With slim profit margins on these essential items, businesses are left with the difficult decision of either absorbing the additional costs or adjusting prices to offset the tariffs.
As small businesses in Vermont navigate the challenges posed by Trump’s tariff policies, the resilience and creativity of entrepreneurs shine through in their efforts to adapt to changing market conditions. By fostering innovative solutions and maintaining strong relationships with customers, Vermont businesses demonstrate their commitment to overcoming obstacles and sustaining economic growth in the face of external pressures.
In Montpelier, as the community bands together to weather the storm of uncertainty, the spirit of collaboration and resilience prevails among businesses seeking to navigate the complexities of international trade policies. Despite the challenges ahead, Vermont’s small business owners remain hopeful and determined to thrive in the ever-evolving economic landscape.
