Governor Ned Lamont, elected state leaders, and the Connecticut Business and Industry Association warned this week that recent tariffs on Canadian goods and Canadian retaliatory tariffs will likely raise prices for Connecticut consumers and small businesses.
Canada is Connecticut's largest foreign market, accounting for 12 percent of the state's merchandise exports, according to officials. Approximately 70 percent of the goods affected by Canadian retaliatory tariffs are core industrial products from Connecticut businesses.
"Tariffs are a tax implemented by the federal government that cause the price of products to go up and are paid for by hardworking Americans," Governor Lamont said. "At a time when we should be laser focused on reducing the cost of goods, the Trump administration and Republicans in Washington are doing the exact opposite and are raising costs for American consumers and businesses."
President Trump implemented a new 50 percent tariff on various Canadian goods, including furniture, milk, cheese, cameras, wine, beer, whiskey, honey, and agricultural seed. This adds to a 50 percent tariff on aluminum imports from Canada that took effect in April. Trump also announced plans to implement a 50 percent tariff on automobiles, trucks, automotive parts, and steel effective January 1, 2027.
In retaliation, Canadian Prime Minister Mark Carney pledged "dollar-for-dollar" retaliatory tariffs on U.S. products starting September 8, 2026. The retaliatory tariffs are expected to impact roughly $170 million of Connecticut exports to Canada, including wire, cables, and aluminum.
More than half of Connecticut businesses surveyed by the Connecticut Business and Industry Association Foundation expect tariffs to negatively impact operations over the next 12 months. "Volatile trade policy creates uncertainty, making it difficult for businesses to make long-term investments in facilities and equipment," said Dustin Nord, director of the foundation. "Small businesses are particularly vulnerable, increasingly endangered by higher costs and interrupted supply chains that will cause long-term harm."
Canadian leaders are also threatening higher tariffs on energy exports if U.S. tariffs continue. Approximately 25 percent of New England's natural gas is imported from Canada, and New England imports roughly 11 percent of its electricity from Canada, with most from hydroelectric power.