New tariffs imposed by the Trump administration April 2, plus tariffs implemented since January, will cost Vermont households an estimated $1 billion annually, according to an estimate provided by the State Treasurer’s Office.
On Wednesday, April 2, the White House announced a sweeping range of tariffs and “reciprocal” tariffs that the administration claims will “free” the U.S. from foreign goods, imposing a minimum 10% tax on all imports, and substantially higher tariffs on major U.S. trading partners, including an additional 34% tariff on Chinese goods.
Economists have raised concern that the tariffs—taxes on foreign goods imported into the U.S.—will ultimately increase prices, which will be passed down to American businesses and consumers.
“Trump’s so-called ‘Liberation Day’ is supposed to free America from imported goods, but in reality, it’s just freeing Vermonters from their hard-earned money and hitting low-income individuals the hardest,” said Treasurer Pieciak. “Vermonters are already facing an affordability crisis, and the administration just hit Americans with one of the largest tax increases in U.S. history. This will raise costs on families and local businesses and hurt the economy.”
While the economic impact of the Trump tariffs on Vermont is difficult to calculate, the Yale Budget Lab, a non-partisan policy research center, estimated the Trump tariffs to date will cost the average U.S. household an additional $3,800 per year.
For Vermont’s 279,612 households, that amounts to $1.06 billion in additional costs statewide. For comparison, Vermont’s property taxes increased by about $200 million in FY24, while the state’s sales tax revenue totaled about $700 million that year.
Prior to April 2, Trump had imposed a 25% tariff on goods from any country importing oil from Venezuela, a 20% tariff on imports from China, and 25% tariffs on goods from Canada and Mexico. The April 2 tariffs do not affect goods from Canada and Mexico, but they are cumulative with respect to China, resulting in a total 54% tariff on most Chinese goods.
While the administration claims the tariffs will incentivize domestic production, Pieciak says they will make it harder for small businesses to compete.
“Our office has already heard from local businesses that can’t afford this massive tax increase,” said Treasurer Pieciak. “This isn’t the kind of thoughtful policy that will help grow American industry—it’s more of the same chaos and uncertainty we’ve come to expect from this administration, without concern for the everyday people who will pay the price.”
Earlier this year, Treasurer Pieciak convened a task force to proactively assess the economic impact of new federal action under the Trump administration.
Vermont’s top import partners by country, import volume and tariff
Canada, $2,161,935,085, 20%
China, $192,413,448, 54%
Switzerland, $98,905,945, 31%
Trinidad and Tobago, $81,354,805, 10%
Mexico, $77,527,704, 20%
Germany, $75,810,525, 20% (EU-wide)
India, $51,928,666, 26%
France, $46,159,798, 20% (EU-wide)
Korea, South, $45,650,562, 25%
