WASHINGTON, D.C. – Today, U.S. Senator Peter Welch (D-Vt.), a member of the Senate Finance Committee, led Senate Democratic Leader Chuck Schumer (D-N.Y.) and Senators Jeanne Shaheen (D-N.H.), Lisa Murkowski (R-Alaska), Tim Kaine (D-Va.), Susan Collins (R-Maine), Ed Markey (D-Mass.), and Ron Wyden (D-Ore.) in introducing the Creating Access to Necessary American-Canadian Duty Adjustments (CANADA) Act, legislation that would exempt United States-owned small businesses from tariffs imposed on Canada.
“Small businesses are the beating heart of Vermont’s economy, and they operate on the thinnest of margins. There’s no way small businesses can be expected to absorb the costs of President Trump’s tariffs. That’s especially true for smaller businesses across our state that rely on strong partnerships with Canada,” said Senator Welch. “This commonsense bill protects America’s Main Street businesses from Trump’s reckless trade war with Canada, and in turn helps Main Street customers.
“Instead of lowering costs for families, Trump’s destructive tariffs are raising prices and hurting American small businesses, from small manufacturers to Main Street shops, hotels, and restaurants that sustain thousands of local jobs. Trump’s chaotic trade war is burning bridges and ruining relationships with our closest ally and key trade partner, Canada, while driving away tourists and costing local economies billions. This bill would help restore our cherished relationship with our next-door neighbor and major economic partner, and bring relief to our communities and small businesses,” said Leader Schumer.
“President Trump’s tariffs are increasing prices on everyday goods and making it harder for businesses and working families to get by,” said Senator Shaheen. “Canada is New Hampshire’s northern neighbor and largest trading partner, meaning Granite State small businesses are especially hard hit by these blanket tariffs. By shielding small businesses from rising costs incurred by the President’s trade war, our legislation would give Main Street some much-needed relief and certainty to plan for the future and keep their businesses afloat.”
“I’ve heard loud and clear from small businesses in Alaska: tariffs are forcing prices to rise and making it difficult to plan long-term,” said Senator Murkowski. “We’re not just neighbors with Canada, we’re partners in everything from trade, tourism, defense, and fishing. I’m hopeful this legislation sends a clear message to the administration that we want to continue this strong partnership by alleviating the effects of these tariffs on our small businesses.”
“President Trump’s broad-based tariffs are causing economic chaos, uncertainty, and higher costs for families and businesses,” said Senator Kaine. “I’ve heard from small businesses across Virginia about how Trump’s trade wars have forced them to make tough decisions about how they’ll continue to operate. I’m proud to introduce this bipartisan bill with my colleagues to exempt small businesses from Trump’s tariffs on Canada, one of our closest allies and top trading partners.”
“Imposing tariffs on Canada, Maine’s closest trading partner, threatens jobs, drives up costs, and hurts small businesses that have long relied on cross-border cooperation and exchange,” said Senator Collins. “This bipartisan legislation would shield small businesses throughout the country from unnecessary economic harm while preserving the vital trade ties that support so many Maine communities.”
“Donald Trump is hell-bent on turning Main Street into Pain Street for America’s small businesses. Trump’s tariffs threaten to supercharge costs in New England and Massachusetts, a region and a state that relies on trade with Canada to meet the bottom line,” said Senator Markey. “Blanket tariffs will only lead to layoffs, closures, and economic pain. That’s not putting America first. I’m proud to join my colleagues to protect small businesses in the Bay State and all of New England from this disastrous trade war.”
“Trump’s Canada tariffs don’t make sense for ANYONE, but especially not for American small businesses. Taxes on products from Canada means small businesses in America will pay more for the inputs they use to make things here in the United States – meaning prices will go up, jobs will be lost and small companies will shut down. This is a commonsense bill to exempt small businesses from Trump trade taxes and cushion some of the blow of his senseless trade war with Canada,” said Senator Wyden.
President Trump has changed or modified his tariff proposals and policies 28 times in his second term. These tariffs have been difficult to navigate for small businesses across the United States—especially in Vermont, where Canada is the state’s largest trading partner. Tariffs lead to supply chain disruptions, increased costs of goods and materials, smaller profits and higher costs for consumers.
The CANADA Act is supported by Main Street Alliance and Small Business Majority.
“The relationship between Canada and the United States is a critical one for farmers, small business owners, and Main Streets across the US, but especially in the border states. It is essential for this relationship that US trade policy is predictable, purposeful, and designed to benefit both countries. The erratic, fact-devoid tariff emergencies put into effect by President Trump are making it harder for US businesses to start and operate while not even achieving the goals they claim to have in the first place. The Senate passing the CANADA Act by Sen. Peter Welch is a step in the right direction, with more to do to restore US global leadership and rebuild trust that’s been unfortunately damaged over the past 7 months,” said Shawn Phetteplace, National Campaigns Director, Main Street Alliance.
“The constantly shifting tariff policy landscape has left small businesses struggling to plan ahead. Any amount of clarity lawmakers can offer right now, including an exemption for small businesses importing goods from a specific country, would help by giving entrepreneurs some degree of certainty in a chaotic time. If nothing is done soon to help protect small businesses from tariffs, we expect inflation, uncertainty and chaos will crush many small firms, damage America’s economy and cause the loss of countless jobs,” said John Arensmeyer, Founder and CEO, Small Business Majority.
In 2024 alone, trade with Canada accounted for 35% of Vermont’s exports, 67% of its imports, and 56% of its total trade. One in four businesses in Vermont relies on trade with Canada. Vermont buys more goods from Canada than the next nine largest foreign markets combined. In 2023, Vermont exported $150 million just in food and agricultural products to Canada.
Vermont boasts nearly 82,000 small businesses, which represent 99% of all businesses in the state, and employ over 62% of Vermont’s overall workforce—higher than the national average. Small businesses in Vermont also employ a diverse workforce, with 43.8% of small businesses in the state owned by women and 6% owned by veterans.
Senator Welch has blasted Trump’s tariffs and trade war and shared stories from Vermonters about how President Trump’s economic policies have impacted their businesses, farms, and communities. In May, Senator Welch joined a bipartisan delegation and traveled to Ottawa to meet with Canadian dignitaries, including Prime Minister Mark Carney, to discuss bipartisan support for a U.S.-Canada partnership and their commitment to a strong trading relationship between the United States and Canada. The Senator has hosted roundtables in Stowe, Newport, St. Albans, Manchester, and virtually to hear concerns and first-hand stories from Vermont and Canadian leaders impacted by the trade war.
Read and download the full text of the bill.
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