Vermont’s economy is dependent on our friends in Canada. Between the pandemic and international politics, it’s been a rough few years on both sides of the border.
After a steep decline fueled by political boycotts and trade disputes, Canadian tourism was finally showing tentative signs of a summer rebound in Vermont, according to the Agency of Commerce and Community Development. State data reveals Canadian credit card spending increased by 40% year-over-year in May, and border crossings rose nearly 15%, bringing a much-needed boost to local businesses.
President Donald Trump’s administration recently announced 50% tariffs on a wide range of Canadian goods, taking effect in 30 days. The White House said the move was a response to Canada’s “discriminatory treatment” of American goods. Specifically, it referenced tariffs and quotas on U.S.-manufactured cars and the fact that all but two Canadian provinces and territories have restricted the distribution of American alcohol.
Canadian Prime Minister Mark Carney said the U.S. tariffs are “in direct violation” of the United States-Mexico-Canada Agreement. Carney said Canada has made proposals to “modernize” USMCA.
Closer to home, U.S. Sen. Peter Welch had his own choice words: “These new tariff threats against Canada are an extreme escalation of President Trump’s reckless and irresponsible trade war. The White House’s endless attacks on our Canadian neighbors — Vermont’s closest partner in trade — have caused undeniable harm to our state’s economy, and the aftershocks of today’s announcement will do lasting damage.”
Welch argued the Trump administration is only making trade talks and diplomacy more challenging, all while the trade agreement governing our relationship with Canada is up for review.
“I urge President Trump and U.S. Trade Representative Greer to drop these new tariff threats immediately,” said Welch. “This is yet another reason why Congress needs to take back its constitutional power over trade policy. This administration needs to answer for the economic chaos it’s creating.”
According to Visa Destination Insights, in April and May, credit card spending from Canada showed increases (+58% and +40% respectively) compared to those same months in 2025. Year-to-date credit card spending as of May was holding steady, whereas it had been off by as much as 47%.
Progress was being made. Was ...
Now, we have to hope that cooler heads can prevail. Vermont’s economy cannot continue to withstand sustained blows because the Trump administration needs to have a tantrum over whatever policy it does not like.
(Excerpted and reprinted courtesy of Steve Pappas, Times Argus)
