U.S. Senator Travels to Montreal to Demand End to Trump’s 50% Tariffs on Canada

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The growing trade confrontation between Canada and the United States has drawn an unusual intervention from an American senator willing to challenge his own president’s policies on Canadian soil. On October 29, 2026, Vermont Democratic Senator Peter Welch travelled to Montreal to demand an end to President Donald Trump’s punitive tariffs, warning that the economic damage is spreading across both sides of the border.

Welch met with Quebec trade officials, manufacturers, business owners, and tourism representatives as concerns mounted over the future of the Canada-U.S. economic relationship. With 50% tariffs affecting a range of Canadian products and businesses struggling to navigate shifting trade restrictions, his visit highlighted an uncomfortable reality: policies designed to protect American economic interests may also be hurting the communities and industries they are supposed to help.

A Montreal Visit That Sent a Message to Washington

Welch’s October 29 visit was more than a symbolic expression of support for Canada. The senator met Quebec’s new chief trade negotiator and held discussions with manufacturers, business owners, and workers affected by the trade dispute. He also delivered remarks at an Eurasia Group event bringing together business leaders and trade-policy specialists. Later, he participated in discussions with Canadian and Vermont tourism representatives at an event organized by Brand USA. The itinerary reflected a deliberate effort to understand how tariffs were affecting different parts of the cross-border economy.

Welch argued that Washington’s trade policies threatened relationships built through generations of cooperation. His central message was unmistakable: the confrontation needed to end immediately. The senator also promised to continue fighting for the repeal of the tariffs and the restoration of Canada-U.S. relations. His intervention carried particular significance because he serves on the Senate Finance Committee, which oversees trade and tariff policy. Rather than simply criticizing the administration from Washington, Welch brought his concerns directly to the Canadian businesses experiencing the consequences.

Trump’s 50% Tariffs Have Reached Far Beyond the Initial Dispute

The latest confrontation escalated in July 2026, when Trump invoked Section 338 of the Tariff Act of 1930 to authorize additional 50% duties on certain Canadian imports. The administration justified the measures by alleging that Canada discriminated against American motor vehicles, alcoholic beverages, and dairy products. However, the tariffs reached products beyond those industries, including selected furniture, machinery, paper products, textiles, and sporting goods. Unlike many other trade measures, the Section 338 duties can apply even when affected merchandise otherwise qualifies for preferential treatment under the Canada-United States-Mexico Agreement.

The tariff list has also continued to change. On October 23, the White House announced another modification, subsequently implemented on October 30. U.S. Customs and Border Protection confirmed that 22 tariff classifications were removed while 100 additional classifications were brought under the 50% duty. Importantly, the rate does not apply to every Canadian export. The Bank of Canada estimated that the average American tariff rate on Canadian goods reached 7.5% in October. For affected businesses, however, the constantly changing rules create another challenge: deciding how to price products, fulfill contracts, and make investments when market access remains unpredictable.

Vermont’s Economy Depends Heavily on Its Canadian Neighbours

For Vermont, Canada’s importance extends well beyond diplomatic relations. According to the Office of the United States Trade Representative, Vermont exported approximately US$635 million in goods to Canada in 2025, accounting for 31% of the state’s merchandise exports. Canada remained its largest international export destination, ahead of markets including Taiwan and Germany. The relationship also operates in the opposite direction, with Vermont companies purchasing Canadian materials, equipment, and other products used throughout the local economy.

The consequences reach many smaller businesses. Federal trade data show that 887 of Vermont’s 1,023 exporting companies in 2024 were small or medium-sized enterprises. These firms often lack the financial reserves and international supply-chain flexibility available to larger corporations. A manufacturer purchasing Canadian components may face additional expenses, while a Vermont exporter can encounter reduced demand or Canadian retaliatory tariffs. Even when individual products avoid a particular duty, uncertainty can complicate contracts and discourage investment. Welch’s concern reflects this dependence: a relatively small American state can experience substantial disruption when its largest foreign trading relationship becomes unstable.

Local Business Owners Are Already Describing the Damage

The financial pressure described by Welch has appeared repeatedly during his meetings with Vermont businesses. At a September 2026 roundtable near the Canadian border, representatives from manufacturing, agriculture, hospitality, and retail described the effects of the trade dispute. Mike Desmarais, chief executive of TRACK Inc., a business supplying snow-grooming and terrain-maintenance equipment, told WAMC that sales were falling amid tariff uncertainty. He warned that continuing restrictions could threaten the company’s survival.

Another example emerged during an earlier cross-border meeting in Newport, Vermont, in March 2025. Representatives of Caledonia Spirits described how years spent developing a market for Vermont-made gin in Quebec had been undermined when products were removed from store shelves. The company had even developed French-language labels to serve Canadian customers. Although that incident preceded the 2026 Section 338 measures, it demonstrated how quickly political tensions could damage established commercial relationships. For smaller businesses, losing a customer involves more than a missed sale. Distribution networks, marketing investments, and years of trust can disappear much faster than they can be rebuilt.

Welch Is Backing Legislation to Eliminate the Tariffs

The senator’s opposition has also taken a legislative form. Alongside New York Democratic Senator Kirsten Gillibrand, Welch introduced the Banning Antiquated Duties and Delivering Equitable American Levies Act, commonly called the BAD DEAL Act. Introduced in the Senate on September 15, 2026, as S. 5397, the legislation would repeal Section 338 of the Tariff Act of 1930. It would also invalidate presidential proclamations issued under that authority and require refunds of duties collected under those measures. A companion proposal was introduced in the House of Representatives by Democratic Representative Brad Schneider.

The legislation has encountered substantial resistance. On September 29, Welch attempted to advance the measure through unanimous consent in the Senate, but Republican Finance Committee Chair Mike Crapo objected, preventing that expedited passage. The bill remained before the Finance Committee rather than advancing into law. This distinction matters because a senator’s public demand does not automatically translate into a policy reversal. Welch can organize opposition, introduce legislation, and pressure the administration, but eliminating the tariffs through Congress would require additional political support. His Montreal visit therefore represented another stage in a campaign that had already met resistance in Washington.

American Consumers May Be Paying More Than Washington Acknowledges

Tariffs are often presented as penalties imposed on foreign exporters, but the initial payment generally comes from the American company importing the goods. That importer must either absorb the additional cost, negotiate a lower purchase price, find an alternative supplier, or pass some of the expense to customers. Research published in the Journal of Economic Perspectives in 2026 examined the effects of the previous year’s American tariffs and found that approximately 92% of their cost was passed through to U.S. import prices. The finding suggests that American businesses carried much of the immediate burden.

The impact on consumers is less straightforward because companies do not necessarily transfer every additional dollar directly into retail prices. Federal Reserve research published in 2026 nevertheless identified higher prices, reduced purchases, and a disproportionate burden on lower-income households following the 2025 tariff increases. For a family purchasing household goods or a contractor ordering imported materials, even modest price increases can accumulate. Welch’s argument is that tariffs intended to strengthen the American economy may impose immediate costs on the very businesses and families Washington says it wants to protect.

Tourism Has Become Another Casualty of the Trade War

Trade restrictions are not the only concern for Vermont’s border communities. Canadian tourism has also been affected by deteriorating relations. Statistics Canada reported that Canadian-resident return border crossings from the United States declined 25.4% in 2025 compared with 2024. Vermont’s tourism department separately reported that Canadian credit-card spending in the state fell 47% during 2025, based on the Visa transaction data it monitors. Those figures help explain why hotels, restaurants, shops, and recreational businesses became involved in the broader trade debate.

There have been signs of improvement during 2026, although recovery should not be confused with a complete return to previous travel patterns. Vermont recorded approximately 276,000 passenger crossings from Canada during August, an increase of 9.2% over August 2025. That comparison comes against a particularly weak preceding year. Welch’s participation in the Montreal tourism discussions with Brand USA highlighted the importance of rebuilding visitor confidence alongside trade negotiations. For businesses that depend on weekend travellers, skiers, and summer visitors from Quebec, restoring a welcoming cross-border relationship could be just as valuable as removing certain import duties.

Canada’s Retaliation Has Created Additional Pressure on Both Economies

Ottawa has responded with tariffs of its own rather than accepting Washington’s measures without opposition. Following the introduction of the new American duties in August, the Canadian government announced countermeasures covering C$27.6 billion in imports from the United States. The measures took effect on September 8, 2026, with rates of 15%, 25%, and 50% depending on the product. Targeted categories included steel, aluminum, dairy products, appliances, agricultural equipment, pulp and paper, plastics, and electronics.

Canada also announced a C$7.5 billion package of new and enhanced support measures for affected workers and businesses. Ottawa characterized its response as an effort to protect Canadian economic interests after bilateral negotiations failed to produce acceptable terms. However, retaliation presents its own difficulties. Canadian companies purchasing American materials can face higher costs, while U.S. exporters risk losing customers in an important neighbouring market. Some businesses may seek domestic alternatives, but replacing established suppliers is not always practical or affordable. The result is a conflict in which both governments are trying to defend domestic industries while companies on either side face additional expenses and uncertainty.

The White House Maintains That Its Tariffs Are Justified

Trump’s administration presents a substantially different interpretation of the dispute. The White House argues that Canada has treated American exporters unfairly through restrictions involving automobiles, alcoholic beverages, and dairy products. In its July 2026 explanation, the administration reported that Canadian imports of American motor vehicles had declined by approximately 22%, or US$5.6 billion, over the preceding comparative period. It also pointed to a sharp decline in American alcohol exports to Canada. Washington argues that Section 338 provides a legal mechanism to offset discriminatory treatment and protect American producers.

Canada disputes important parts of that account. Its Trade Commissioner Service maintains that Canadian counter-tariffs on American vehicles and restrictions on U.S. alcoholic beverages were introduced in response to earlier American trade measures. Ottawa also maintains that its administration of dairy tariff-rate quotas complies with CUSMA obligations. The disagreement therefore goes beyond the level of the tariff itself. Both governments dispute who initiated the damaging measures and whether their own responses are justified. Welch’s position places him at odds with the White House’s approach, although that disagreement does not eliminate the underlying trade-policy disputes that negotiators must resolve.

The Next Phase of Negotiations Could Determine How Much Damage Can Be Repaired

Welch’s visit came as Canada and the United States were exploring possibilities for reducing trade barriers. Reuters reported on October 26 that officials were discussing potential relief from American tariffs on Canadian steel and automobiles. Those negotiations primarily concerned Section 232 measures, including duties of up to 50% on steel and 25% on automobiles, rather than the separate Section 338 tariffs targeted by Welch’s legislation. By October 28, however, a Canadian official told Reuters that progress remained limited. No comprehensive settlement had been confirmed.

The larger uncertainty concerns the future of CUSMA itself. During the agreement’s July 1, 2026, review, the United States declined to extend the pact in its existing form. The agreement nevertheless remains legally in force, with annual reviews required unless the parties agree to extend it. With the November 3 American midterm elections approaching, the tariff dispute has also become politically sensitive. Welch cannot guarantee a breakthrough simply by travelling to Montreal, but his intervention illustrates growing resistance to prolonged confrontation. For businesses and families on both sides of the border, the real measure of success will be whether political pressure produces lasting tariff relief and a more dependable trading relationship.

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