GOP senators join democrats to oppose Canadian tariffs

On Wednesday, two  Republican lawmakers joined Democrats on legislation designed to protect millions of American small businesses against the levies President Donald Trump has threatened on goods from Canada.

The proposed two‑page measure, formally the Creating Access to Necessary American‑Canadian Duty Adjustments Act, or CANADA Act, arrives amid a White House plan to impose a sweeping 35 percent tariff on every Canadian import beginning Aug. 1.

Because Canada is the top foreign customer for almost 30 U.S. states, the prospective duties have alarmed local employers as reported by CNBC. The legislation would waive the new charges for small businesses that rely on Canadian inputs for their day‑to‑day operations.

“Imposing tariffs on Canada, Maine’s closest trading partner, threatens jobs, drives up costs, and hurts small businesses that have long relied on cross‑border cooperation,” Sen. Susan Collins, R‑Maine, noted in her written comment backing the proposal.

Alaska Republican Sen. Lisa Murkowski echoed that worry. “I’ve heard loud and clear from small businesses in Alaska: tariffs are forcing prices to rise and making it difficult to plan long‑term,” she said. “I’m hopeful this legislation sends a clear message to the administration that we want to continue this strong partnership by alleviating the effects of these tariffs on our small businesses.”

Democratic Sen. Peter Welch of Vermont introduced the bill, and within hours it had five additional Democratic cosponsors, among them New York Democrat Chuck Schumer, the Senate Minority Leader, and Finance Committee ranking member Ron Wyden of Oregon.

The measure seeks to cancel the tariffs Trump unveiled on Feb. 1, which set a 25 % surtax on the bulk of Canadian products and an additional 10 percent on energy shipments.

CANADA act offers tariffs exemptions for small businesses

Under the CANADA Act, those fees would no longer apply “with respect to goods imported by or for the use of small business concerns,” using the government’s existing definition of a small enterprise.

The White House declined to say whether Trump would approve the exemption if it reached his desk.

During a telephone interview, Welch said the legislation would also require Congress to scrutinize any subsequent tariffs, including the 35 % rate proposed for August, arguing the damage extends well beyond consumer price hikes.

“Vermonters really love Canadians, and are very upset about what has happened to the relationships that many of our businesses have built up over the years,” he told CNBC.

The senator noted that Canada “understandably is furious and hurt by the way they’ve been treated,” pressure that is already spilling into Vermont’s tourism sector.

Industry data indicate that visits from Canada to Vermont, and to destinations across the rest of the United States, have dropped markedly this year, hurting hotels, eateries and retailers that depend on cross‑border customers.

Trump initially defended the Feb. 1 duties by claiming Ottawa had not curbed illicit drugs and crime along the northern frontier. When Canadian leader Justin Trudeau promised action, the administration suspended the tariffs for 30 days.

A subsequent March 2 order further postponed termination of the long‑standing de minimis rule, which allows low‑value parcels to enter the country without duty.

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