Governor Ned Lamont, alongside elected state leaders and the Connecticut Business and Industry Association (CBIA), has issued a warning to consumers and small businesses in Connecticut that new tariffs imposed by President Donald Trump on Canadian goods, and Canada's subsequent retaliatory tariffs, are expected to significantly increase product prices. Canada is Connecticut’s largest foreign market, accounting for 12% of the state’s merchandise exports, with approximately 70% of goods affected by retaliatory tariffs being core industrial products from Connecticut businesses.
Governor Lamont emphasized the financial burden, stating, “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.” He challenged Republican legislators in Connecticut to oppose these policies, which he said are "driving up inflation and making the cost of living more expensive."
Dustin Nord, director of the CBIA Foundation for Economic Growth and Opportunity, highlighted that over half of Connecticut businesses anticipate a negative impact from tariffs over the next year. Nord added, “Volatile trade policy creates uncertainty, making it difficult for businesses to make long-term investments in facilities and equipment.” President Trump recently implemented a 50% tariff on various Canadian goods, including furniture and dairy, in addition to an April tariff on aluminum imports. Further 50% tariffs on automobiles, trucks, parts, and steel are planned for January 1, 2027.
In response, Canadian Prime Minister Mark Carney has pledged "dollar-for-dollar" retaliatory tariffs on U.S. products beginning September 8, 2026, which are projected to affect roughly $170 million of Connecticut exports, including wire, cables, and aluminum. State Senator Norm Needleman (D-Essex) called the tariffs "arbitrary and hurtful," while State Senator Christine Cohen (D-Guilford) noted they create instability, forcing businesses to either raise consumer prices or close.
Canadian leaders have also threatened higher tariffs on energy exports if U.S. tariffs persist, a move that could significantly impact New England, which imports 25% of its natural gas and 11% of its electricity from Canada.