Bipartisan Bill Introduced to Exempt Small Businesses From Canada Tariffs
Sen. Peter Welch, D-Vt., joined by two moderate Republicans, Minority Leader Chuck Schumer, and other Democrats, introduced a bill this week that would exempt small businesses from paying tariffs levied on Canada under the fentanyl emergency. Small businesses are defined by the Small Business Administration, based on either average employment or recent annual revenues, and some manufacturers can have as many as 1,500 employees. Small retailers, depending on the sector, may qualify with annual revenues at or below $9 million to $47 million.
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Goods from Canada that qualify for USMCA -- as long as they aren't covered by steel, aluminum or auto tariffs, or pending Section 232 actions -- don't owe the 25% duty.
"Small businesses are the beating heart of Vermont’s economy, and they operate on the thinnest of margins. There’s no way small businesses can be expected to absorb the costs of President Trump’s tariffs," Welch said in a press release announcing the Creating Access to Necessary American-Canadian Duty Adjustments (CANADA) Act introduction.
"Trump’s chaotic trade war is burning bridges and ruining relationships with our closest ally and key trade partner, Canada, while driving away tourists and costing local economies billions. This bill would help restore our cherished relationship with our next-door neighbor and major economic partner, and bring relief to our communities and small businesses," Schumer said in the release.
Co-sponsor Lisa Murkowski, R-Alaska, said in the release, "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. We’re not just neighbors with Canada, we’re partners in everything from trade, tourism, defense, and fishing. 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."