Vermont's small businesses are experiencing immediate economic fallout from escalating U.S.-Canada trade tensions, with disrupted exports, declining tourism, and rising import costs threatening a deeply interconnected regional economy.

The state shares a robust trade relationship with its northern neighbor, exporting $680 million in goods annually to Canada while importing over $2.6 billion, including critical supplies like electricity and fuel oil. This interdependence has made local enterprises particularly vulnerable to tariff disputes.

For Barr Hill by Caledonia Spirits, a canceled order from Quebec's liquor authority has left a shipment stranded on the dock for a month. "We missed our financial plan in February because of this," said President Ryan Christiansen, who fears the lost business may not return even if tariffs are lifted.

The tourism sector is also feeling the pinch. Jay Peak Resort, which relies on Canadian visitors for roughly half its market, saw a noticeable drop in day traffic from Montreal during Quebec's spring break. President Steve Wright noted that cross-border travel has been further complicated by reduced hours at a nearby border crossing. While the resort offers a favorable currency exchange to retain Canadian guests, Wright acknowledged, "there is a point where they will decide to stay home despite their love of the place."

In response, Montpelier businesses are discussing promotional campaigns like "Canada Days" to encourage cross-border visits. "I would rather take the position of being proactive," said Bill Butler, co-owner of Artisans Hand Craft Gallery.

Meanwhile, retailers like Guy's Farm & Yard face rising costs for Canadian-sourced products such as wood shavings, pellets, and peat moss. Owner Sam Guy stated that any 25% tariff would inevitably be passed to consumers, as these are low-margin goods. "We can't eat this," he said.

The tensions underscore how tariff policies aimed at broader trade rebalancing can disproportionately impact border-state economies, straining long-standing commercial and cultural ties.