US Border States Could See Price Rises This Week
Impending new tariffs on Canada’s exports could damage both countries’ economies and hurt border communities first, experts warn.
Beginning on Wednesday, new tariffs imposed by the United States on Canada will likely result in economic hardship for border states including Minnesota, New York, Vermont, and Washington. President Donald Trump imposed 50 percent tariffs on approximately $20 billion worth of Canadian exports, including goods such as hockey sticks, clothing, wines, dairy products, and building materials.
The White House claims the tariffs are a response to Canada's treatment of American products, including alcohol, dairy, and automotive exports. Canadian leaders have described the negotiations with the U.S. as "delicate and intense," with no clear progress made to prevent the tariffs from taking effect. The U.S. Chamber of Commerce has warned of potential damage to both economies and has urged officials to continue dialogue to avoid imposing new tariffs.
The tariffs are expected to hit communities at the border most severely, with research showing that states with close economic ties to Canada will be more vulnerable. Minnesota, New York, Vermont, and Washington are all at risk of significant economic pain due to their extensive trade relationships with Canada. Already, New York-based businesses have faced declines in tourism from Canada and exports to the country, while northern New York could suffer greatly from higher tariffs on construction materials.
As the deadline approaches, talks between the two countries continue, but it remains unclear whether they can find a compromise to avoid the tariffs.
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