One year after President Donald Trump imposed sweeping tariffs on Canada and other nations, the economic ripples are still being felt across Vermont's Northeast Kingdom. The tariffs, announced in February 2025 and expanded in April, were suspended a week later as the U.S. and Canada negotiated a new free trade agreement. But the U.S. Supreme Court ruled on February 20, 2026, that the president lacked authority to levy such import taxes by claiming a national emergency. The 6-3 decision invalidated the tariffs unless Congress acts to sanction them.
Following the ruling, the U.S. Court of International Trade ordered U.S. Customs and Border Protection (CBP) to refund more than $160 billion collected from American importers. CBP is now developing the Consolidated Administration and Processing of Entries (CAPE) system within the Automated Commercial Environment to speed refund requests.
Canada is Vermont's largest trade partner, with Vermont businesses exporting $631 million in goods to Canada in 2025, 34% of the state's exports. Canada sent $2.6 billion in goods to Vermont that year. The tariffs affected agriculture, wood products, retail, and manufacturing, all key sectors locally, and also hit tourism.
"For years, hard working American citizens were forced to sit on the sidelines... But now it's our turn to prosper," Trump said at his tariff announcement. The Supreme Court ruling allows tariffs for up to 150 days unless Congress extends them.
NEK will be looking into how local businesses are filing for refunds through the new CAPE system and whether any NEK importers have received payouts yet.
Photo: Bernd 📷 Dittrich via Unsplash. Photo is illustrative and not from the scene.
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