William Crooks
U.S. Senator Peter Welch and MP Marie-Claude Bibeau addressed business leaders at a roundtable discussion in Newport on the impact of U.S. tariffs on Canadian trade

By William Crooks

Local Journalism Initiative

Business leaders, government officials, and economic experts gathered at the U.S.-Canada border in Newport on Mar. 18 for a roundtable discussion on the economic and social impact of President Trump’s trade war and the sweeping tariffs imposed on Canada. The event, hosted by U.S. Senator Peter Welch (D-Vt.), saw participation from a wide range of businesses from Vermont and Quebec, including representatives from Sherbrooke, highlighting the deep economic ties between the two regions.

Welch, a member of the Senate Finance Committee, opened the discussion with strong remarks against the tariffs, emphasizing the importance of U.S.-Canada relations. “I am absolutely horrified at these tariffs,” Welch stated. “I am appalled at what our president is saying about Canada in referencing to a 51st state. There’s no place for that. We are neighbours, we’re allies, we’re friends, and I want to keep it that way.”

Joining him was Marie-Claude Bibeau, MP for Compton-Stanstead, who echoed the sentiment that these tariffs pose a serious threat to economic stability and sovereignty. “This is not the right thing to do, not for your economy and not for ours either,” Bibeau said. She noted that Canada was prepared to retaliate with counter-tariffs while emphasizing the need for cooperation. “We are not going to let ourselves be bullied,” she said firmly.

Economic fallout: Business owners speak out

Representatives from both sides of the border expressed frustration over the uncertainty and financial strain caused by the tariffs. Dave Laforce, owner of Built By Newportwhose company has long-standing partnerships with Canadian suppliers, explained how the trade war was directly affecting operations. “We have a culture in our business to form long-lasting relationships with both our vendors and our customers,” he said. “The yo-yo of every hour, things changing, has been brutal.”

Denis Larue, president of J.A. Larue Inc, a snowblower manufacturer from Quebec, outlined the tangled supply chain that exists between Canada and the U.S. “We buy engines and components from the U.S., bring them to Canada to assemble into our machines, and then export them back to the U.S.,” he explained. “If we have to pay tariffs at every stage, prices will skyrocket, hurting American consumers just as much.”

Jody Spearing from UTV International, a Montreal-based manufacturer, highlighted concerns over how tariffs could disrupt production. “We have aggressive plans to launch new products in the U.S.,” he said. “If tariffs stay in place, we might have to reconsider those investments.”

Sherbrooke’s economic worries

Stephen Cabana, Deputy Director of Sherbrooke’s Economic Development Service, provided insight into the city’s broader concerns in a brief interview after the event. “In terms of manufacturing, regarding steel and aluminum, it is impacting approximately 75 to 80 different companies that are directly exporting those products to the United States,” he stated. “These companies employ about 3,800 people. If we expand the scope to all affected businesses in Sherbrooke, that number rises to 125 companies and 6,800 employees.”

Cabana pointed out that the long-term effects are difficult to predict, particularly for those businesses that supply materials to these exporters. “We don’t yet have data on the full ripple effect,” he said. “But we know it’s significant.”

A growing divide

The discussion also touched on the broader implications of the trade war beyond economics. Bibeau spoke candidly about how these tariffs were affecting Canadian sentiment toward the U.S. “We’ve never seen Canadians so united,” she said. “People are actively avoiding buying American-made products. It’s heartbreaking because we’ve always seen ourselves as close partners.”

Welch acknowledged the growing tensions and expressed concerns about long-term damage to U.S.-Canada relations. “We are making your hard job harder for no benefit,” he told the gathered business leaders. “The tariffs are causing nothing but disruption, and we need to push back.”

During a media scrum following the event, both Welch and Bibeau reiterated their commitment to fighting against the tariffs. “My goal is to get the word out about how extraordinarily challenging these tariffs are to our economic relationships and our cultural relationships,” Welch said. “This is getting worse, not better.”

Bibeau added that Canada was prepared to take firm action if necessary but remained hopeful that dialogue would prevail. “We will do what we have to do,” she said. “But we also know that it is the American people who can convince President Trump that this is a bad idea.”

Looking forward

As businesses on both sides of the border brace for continued economic instability, there was a clear call for unity and advocacy. Several Vermont business owners expressed frustration with the unpredictability of trade policy under the Trump administration. “You can’t run a business when the rules keep changing,” one participant said.

Cabana emphasized the importance of long-term strategies to mitigate the damage. “We’re working on mid- and long-term public policies to help affected businesses,” he said. “But the reality is, we need structural changes, and that won’t happen overnight.”

Despite the challenges, both Welch and Bibeau expressed optimism that economic cooperation would ultimately prevail. “We will be back,” Bibeau assured. “Our economies are too integrated for this to last forever. But in the meantime, we need to stand firm.”

The roundtable served as a stark reminder of the deeply intertwined nature of the U.S.-Canada relationship. While businesses struggle with the immediate fallout, leaders on both sides pledged to keep fighting against policies that threaten economic stability and cross-border unity. The next few months will be crucial in determining whether these voices can bring about change or if the trade war will continue to escalate.