Governor Lamont, Elected Leaders, and Business Association Warn Connecticut Consumers That Trump’s New Tariffs Will Increase the Cost of Goods

(HARTFORD, CT) - Governor Ned Lamont, elected state leaders, and the Connecticut Business and Industry Association (CBIA)-the largest statewide organization representing businesses in Connecticut-are warning consumers and small businesses in the state that President Donald Trump's newly implemented tariffs on Canadian goods and the retaliatory tariffs being imposed on U.S. products by Canada will likely lead to price increases on a wide variety of products.

Canada is Connecticut's largest foreign market, accounting for 12% of the state's merchandise exports. Approximately 70% of the goods affected by retaliatory tariffs imposed by Canada are core industrial products from Connecticut businesses.

"Let's be clear-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. I am challenging Republican legislators in Connecticut to speak out-tell the leader of your party that these policies are driving up inflation and making the cost of living more expensive."

Dustin Nord, director of the CBIA Foundation for Economic Growth and Opportunity-the research arm of CBIA-said the foundation's recent annual survey of Connecticut businesses showed more than half 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," Nord said. "Small businesses are particularly vulnerable, increasingly endangered by higher costs and interrupted supply chains that will cause long-term harm."

Last week, President Trump implemented a new 50% tariff on a variety Canadian goods, including furniture, milk, cheese, cameras, wine, beer, whiskey, honey, and agricultural seed. This is in addition to the 50% tariff on aluminum imports from Canada that took effect in April. Additionally, President Trump announced plans to implement a 50% tariff on automobiles, trucks, automotive parts, and steel that will take effect on January 1, 2027.

In retaliation, Prime Minister Mark Carney has pledged "dollar-for-dollar" retaliatory tariffs on U.S. products starting September 8, 2026. These retaliatory tariffs are expected to impact roughly $170 million of Connecticut exports to Canada, many of which include core products made in Connecticut, such as wire, cables, and aluminum.

"It's great that Governor Lamont is bringing attention to the issue of tariffs' costs on average Americans following the use and escalation of tariffs and trade wars with national allies," State Senator Norm Needleman (D-Essex) said. In addition to his role on the Connecticut General Assembly, Senator Needleman owns a business in the state. "These tariffs are arbitrary and hurtful, with their most pressing impact being a further increase of costs for the average household. As the owner of a manufacturing company dealing with tariffs' impacts on a daily basis, I know firsthand that arbitrary trade policies are dangerous and detrimental."

"You don't have to go any farther than Main Streets all across Connecticut to see the ripple effect of Donald Trump's tariffs and the retaliatory measures that other countries, including Canada, are taking," State Senator Christine Cohen (D-Guilford), co-owner of Cohen's Bagels, said. "As a small-business owner, I know all too well the balance of trying to maintain prices for our customers while dealing with higher input costs. What we need most in an affordability crisis is stability, and these tariffs of Donald Trump's create exactly the opposite effect. Without stability and predictability, businesses can't grow, and with skyrocketing costs, some businesses will be faced with an incredibly difficult decision: raise consumer prices, or close the doors. Either way, our economy and our working families lose."

Canadian leaders are also threatening that if these tariffs from the U.S. continue, they could implement higher tariffs on energy exports. The impacts of this could be significant. Approximately 25% of New England's natural gas is imported from Canada. Additionally, New England imports roughly 11% of its electricity from Canada, with most of that from hydroelectric power.