“It feels like our successful business … it feels like I’ve lost it in two weeks,” Ringer told lawmakers. “You just feel helpless.”
Vermont businesses leaders shared economic horror stories about the impact tariffs could have on their organizations during a special joint hearing at the Statehouse on Wednesday morning.
The testimony took place before Trump backed down on most tariffs, announcing a 90-day pause on most “reciprocal” tariffs — news that sent the U.S. stock market soaring. The S&P 500 closed up 9.5 percent, its best one-day performance since 2008.
Tariffs on China were increased to 125 percent, however. And previously announced tariffs on Mexico and Canada will stand. That underscores the chaotic nature of Trump’s trade policies and the continued risk to companies such as Ringer’s.
For three hours, representatives of iconic Vermont brands such as Burton Snowboards and smaller businesses told lawmakers that Trump’s trade wars, combined with his demeaning rhetoric toward Canada, threaten to deliver a body blow to the Vermont economy.
“We are facing a perfect storm that could slow the rollout of fiber optic service in Vermont,” said Kurt Gruendling, the vice president of marketing and business development at Waitsfield and Champlain Valley Telecom.
The specialized telecommunications equipment needed to expand broadband service face significant tariffs even as other costs of doing business, including labor and building materials, are on the rise, he said.
Those high-tech components can’t be easily swapped out for domestic alternatives, which may leave the company little choice but to pass on the costs to consumers, he said.
“Affordability is a core of our mission, but it must be sustainable,” Gruendling said.
Rob Golden, CEO of Burlington’s Renoun Skis, said the tariffs would force the company to tack on about $250 to a pair of its $950 skis.
Raw materials for the skis are exported from the U.S. into Canada, where they are manufactured. That means the tariffs would apply once to that raw material, then again when the skis are delivered over the border to the company in Burlington, and then potentially a third time if the skis are sold to someone in Canada, he said.
“It’s a compound problem,” he said.
Lawmakers expressed sympathy for business owners and pledged to do all they could to support efforts to get the tariffs repealed and to soothe the strained relations with Vermont’s northern neighbor.
Senator Alison Clarkson (D-Windsor) noted that U.S. Senator Peter Welch (D-Vt.) this week supported a resolution calling on Congress to repeal Trump’s tariffs, and said state lawmakers would find ways to support that effort.
“We will do all we can to maintain this incredibly important relationship, both familial and commercial,” she said.
Senate President Pro Tempore Phil Baruth (D/P–Chittenden-Central) apologized to Canada for the president’s actions, which he said had “wounded us economically.”
House Speaker Jill Krowinski (D-Burlington) seldom testifies before legislative committees but did on Wednesday due to the gravity of the potential economic impact on the state.
“This is a very difficult time, but Canadians and Vermonters know how to weather storms, and we will weather this storm together,” she said.
Welch put out a statement on Wednesday afternoon that said the tariff pause was “an acknowledgement of what we’ve said from day one: nobody wins in a trade war.”
Sen. Bernie Sanders (I-Vt.), who says “targeted tariffs” can protect American workers, criticized Trump’s approach.
“Trump’s trade chaos — changing policy from day to day — is rapidly undermining our economy and making it impossible for households and small businesses to function,” he said in a statement. “How can you plan for next week, let alone next year, when the rules might change tomorrow?”