Nicholas Gilbert, a dairy farmer in Potsdam, NY, is struggling due to increased costs from tariffs imposed during President Trump's trade war. A recent livestock feed order cost him an extra $2,200 due to tariffs on goods from Ontario, Canada.
Gilbert mistakenly believed his Canadian supplier would cover the increased costs, but tariffs are the responsibility of the domestic importer, not the foreign exporter. This situation is further complicated by the fixed milk price set by his local co-op and lack of US-based suppliers.
This issue isn't isolated to Gilbert's farm. The article cites several other businesses along the US-Canada border experiencing negative impacts, including closures and layoffs. A small packing and shipping business closed due to reduced Canadian customers, and a manufacturing company anticipates $16 million in extra costs.
The article highlights the significant economic downturn in border communities, with businesses across various sectors struggling with increased costs and reduced revenue. The situation is described as a recession in the affected areas. Gilbert notes that while larger companies may be able to pass on costs to consumers, smaller businesses like his cannot.
An Upstate New York farmer is reeling from the increased cost of business amid President Donald Trump’s trade war with multiple countries.
Nicholas Gilbert, who tends 1,400 cows at his dairy farm in Potsdam, close to the Canada border, told The Atlantic that a recent order of livestock feed cost him $2,200 extra due to tariffs. The feed came from Ontario, and he mistakenly believed his supplier at the Canadian mill would cover the difference.
“I’m not even sure it’s legal! We contracted for the price on delivery,” he told the magazine. “If your price of fuel goes up or your truck breaks down, that’s not my problem! That’s what the contract’s for.”
But the tariff was not only legal, it’s his responsibility to pay it. Tariffs are paid by domestic importers, not foreign exporters, despite Trump’s frequent claims otherwise.
And according to The Atlantic, Adon Farms is doubly stuck with the added cost because the price of the milk Gilbert sells is set by a local co-op and there are no U.S. suppliers nearby. Buying feed somewhere else would be more expensive, he said.
It’s the latest in a growing number of businesses caught in Trump’s trade war. A small packing and shipping business in Washington state announced last week it was shutting down because Canadian customers stopped using it due to tariffs and Trump’s repeated comments about annexing Canada.
The Associated Press reports the issue is especially tough on communities along the U.S.-Canada border, affecting farms, pets, breweries, ski resorts, water parks, hotels, gas stations and tourism. Costs have gone up and revenue has gone down, leading to layoffs, closures, and serious economic concerns.
“The recession has already begun” in these places, The Atlantic declared.
Gilbert said some larger companies may be able to pass costs on to consumers by raising prices. But he can’t, and it’s only going to get harder with levies on fertilizer or farm equipment.
North Country Chamber of Commerce President Garry Douglas told The Atlantic that others are struggling, too. One manufacturing company in the region expects to pay $16 million more due to the cost of raw materials from Canada, while a paper mill is panicking because the type of wood they need is only available up north.
“We’re taking that right on the chin,” Gilbert said.
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