Connecticut manufacturers, particularly small businesses, said Trump’s tariffs and a trade war with Canada were cutting into their profits
Business leaders said tariffs were pushing companies to localize supply chains while discouraging international investment in the state
Tariffs also kept coffee prices elevated for Connecticut coffee shops and shoppers, with relief not expected soon
As President Trump continued to wage trade wars by imposing tariffs on imported goods from a number of countries, Connecticut businesses increasingly reported struggles due to the policies.
Connecticut manufacturers, especially small manufacturers, increasingly reported that Trump’s tariffs were impacting their profits, according to the Hartford Business Journal. At the Connecticut Business & Industry Association’s annual manufacturing summit, small businesses pointed in particular to a growing trade war with Canada as a drag on state businesses.
That trade war saw Trump impose a 50% tariff on billions of dollars of Canadian imports, and Canada responded with its own tariffs on U.S. goods.
The president of OEM Controls’ products division, a maker of industrial joystick controllers in Shelton, reported it does significant trade with Canada, with reciprocal tariffs directly impacting their profits. An advisor to manufacturing companies added tariffs don’t just add costs to products, but increase the expenses incurred in investing in or buying new machinery.
Connecticut business leaders said the trade war was sending companies in search of ways to localize their supply chains, which would help manufacturers work together within the state. However, they said, continued tariffs were keeping international companies from investing in Connecticut until they saw what trade policy looked like in two years.
While manufacturing is directly impacted, another tariff impact is hitting Connecticut residents where it hurts – their morning boost of caffeine. Coffee prices are down from the decades-high peak they hit earlier this year, but remain elevated due to global tariffs. That’s impacting coffee shops and shoppers alike, the New Haven Register reported.
Shoppers turned to locally roasted or store-brand coffees as imported brands surged in cost, and relief was not expected soon. Industry projections cited by the Register suggested it could take at least two years for coffee prices to fall.
