On Wednesday, two Republican lawmakers supported legislation aimed at protecting American small businesses from President Trump's tariff threats on imports from Canada.
Tariffs Threat: Cause for Concern
The proposed measure, known as the Creating Access to Necessary American-Canadian Duty Adjustments Act (CANADA Act), comes amid a White House plan to impose a 35% tariff on all Canadian imports starting August 1. Canada is the top foreign customer for nearly 30 U.S. states, raising alarms among local businesses.
Support for Tariff Legislation
Senator Susan Collins of Maine noted that the tariffs threaten jobs, increase costs, and harm small businesses that rely on cooperation with Canada. Alaska's Senator Lisa Murkowski echoed these concerns, stating that small businesses report rising prices and difficulties in long-term planning. The bill was introduced by Senator Peter Welch of Vermont and quickly gained support from several Democrats, including Minority Leader Chuck Schumer.
Impact on Small Businesses
The CANADA Act would exempt small businesses from the proposed tariffs on Canadian imports. Welch emphasized the need for Congress to scrutinize any subsequent tariffs, highlighting the damage done, including a drop in Canadian tourism to Vermont, which negatively affects local hotels and restaurants. 'Vermonters really love Canadians and are very upset about what has happened to the relationships,' Welch stated.
The CANADA Act offers tariff exemptions for small businesses amid growing concerns among entrepreneurs. However, the fate of the legislation remains uncertain.
