Over the weekend, President Donald Trump proposed a 15% global tariff rate after the Supreme Court ruled against his previously imposed tariffs. It’s all led to uncertainty in the North Country, where businesses sit near the Canadian border.
Rovers North is an employee-owned company in Westford, Vermont, that sells Land Rover parts. President and CEO Calef Letorney says sales at the company are down 30% in the wake of tariffs. And, he says, the company has had to lay off employees for the first time since its founding in 1979.
“We’re really appreciative that the Supreme Court has upheld the rule of law and that the power to tax should be with the Congress. We understand the president has some new tariffs coming in and hopefully we’ll get these reversed. But it’s been a very difficult time to be an importer and unfortunately we just don’t make the things in the U.S. anymore and so adding a tariff isn’t immediately going to bring back manufacturing to the U.S. Most of what we’re buying just isn’t available locally and it’s just a tax on the American consumer. It’s been very difficult for us in this new trade environment.”
After the Supreme Court ruled Friday against tariffs imposed under the International Emergency Economic Powers Act (IEEPA), President Donald Trump announced this weekend he plans to impose a 15% global tariff under a different law that would allow the imposition of the taxes for 150 days.
Letourney says the uncertainty isn’t helpful.
“The costs are definitely getting passed on to the consumer so I image sales volume will continue to go down and will contract as long as the tariffs continue to increase. And it’s worth noting that the unpredictable nature of the situation is a significant challenge. You know, tariffs being applied via tweet or a Truth Social post is really challenging. You don’t know on a Monday if it’s going to be different on Wednesday or what have you.”
Peter Welch, Vermont’s junior senator, says severe economic damage has already occurred as a result of Trump’s tariffs.
“The president asserted that by raising tariffs he would create manufacturing jobs. We have lost 100,000 jobs. The president asserted that if he had these tariffs in place it would lower the United States’ trade deficit. The United States’ trade deficit it’s never been higher. On every goal that the president asserted he would achieve, he failed.”
Welch, a Democrat, says any company that paid tariffs are entitled to a refund
“I guess President Trump was saying he doesn’t know how it’s going to work out. The reality is you had to pay these online so they can be refunded online. There’s no excuse for the treasury not to refund the tariffs that Calef paid already. And I’ll be working with my colleagues to get those refunds processed as quickly as possible.”
Before departing Burlington for Washington, D.C., Monday, Welch praised the high court for standing up to the president and limiting what he calls overreach by Trump.
“This arbitrary abuse of authority was causing havoc for our small businesses. It was also unconstitutional and illegal. So I am extremely pleased that the Supreme Court has issued a definitive ruling. Now what we’re seeing in reaction from the president is he’s looking to try to find other ways to impose other arbitrary tariffs. So this tariff battle is going to continue.”
