Ryan Christiansen, president and head distiller at Caledonia Spirits, giving a tour in Montpelier, VT.
Courtesy: Ryan Christianse | Caledonia Spirits
President Donald Trump’s tariff rhetoric against Canada has only started to heat up, but Vermont’s small businesses are already feeling some pain.
A shipment of spirits, ordered by the Société des alcools du Québec – an entity that’s responsible for the trade of alcoholic beverages in the province – has been sitting on a shipping dock at Montpelier-based Barr Hill by Caledonia Spirits for about a month.
The SAQ called off the order shortly after Trump announced the tariffs against Canada in February, according to Ryan Christiansen, president and head distiller at Caledonia Spirits.
“Customers are ready to buy, and we are in the peak of slow season – it’s an annual cycle for us, and we were looking forward to shipping the order. Now, it’s sitting on the dock,” he said. “To have this hit our business in the slow month of February? We missed our financial plan in February because of this.”
Exports at Caledonia Spirits in Montpelier, VT.
Courtesy: Ryan Christiansen | Caledonia Spirits
Vermont has a special relationship with Canada, as the Green Mountain State exports $680 million in goods to the U.S.’s northern neighbor annually, according to data compiled by Connect2Canada. Vermont imports more than $2.6 billion in goods from Canada each year, with electricity and fuel oil among the top imported goods.
Because of the state’s close business ties to Canada and their shared borders, small businesses in Vermont began seeing some fallout as early as February – when Trump first announced a round of 25% tariffs on goods from Mexico and Canada, triggering 25% retaliatory levies from then-Canadian Prime Minister Justin Trudeau. At the time, Ontario also said it would pull American alcohol products from its shelves.
Ultimately, Trump granted a reprieve on Canadian and Mexican goods covered by the North American trade agreement USMCA until April 2. However, many products are still subject to the duties.
“We worked really hard to maintain this relationship with the Canadian government,” Christiansen said. “How do I get them to buy as much as the Canadian customer wanted to buy? Even if the tariffs go away, I think it’s overly optimistic that this order gets resubmitted.”
Tourism worries
It didn’t take long for Steve Wright, president and general manager of Jay Peak Resort, which is about 10 miles from the Canadian border, to begin seeing the impact of the rhetoric around tariffs.
He noted that spending from Canadian tourists showed signs of softening particularly in two key weeks: Quebec break week, which ran from March 3 to March 8, and Ontario break week, which kicked off on March 10.
Though Canadian visitors generally account for about half of the resort’s market, they make up virtually all of it during that two-week stretch, Wright said.
People ski at Jay Peak in Jay, VT.
Courtesy: Patrick Coyle, Darla Mercado | CNBC
“The Quebec break week sold really well, and we had great conditions, but what was missing was the day market,” he said. “We did not get the day traffic we usually see from Montreal, that part of the market softened up.”
Tariff rhetoric has only been the latest pressure point for Jay Peak. The resort’s manager also pointed to the reduction in hours of operation for the nearby North Troy, VT border crossing. It went from 24 hours a day to 8 a.m. to 8 p.m. in January.
To accommodate its Canadian clientele over the past two decades, Jay Peak has been offering at-par options for these tourists on non-margin products. “Say a lift ticket is $100, you can give us C$100,” Wright said. “That has insulated the business a little bit.”
“They have an affinity for Jay Peak; they have been coming here for a generation, but there is a point where they will decide to stay home despite their love of the place,” he added.
In Montpelier, which is a roughly two-to-three-hour drive from Montreal, worries about tourist traffic are already bubbling among small businesses. This corner of the state tends to see weekend visitors from up north, particularly in the temperate summer and fall seasons.
Bill Butler, a co-owner of Artisans Hand Craft Gallery, has been in talks with fellow entrepreneurs in downtown Montpelier to propose promotional deals for Canadian visitors to keep the foot traffic coming.
“My idea is to have something like ‘Canada Days,'” he said. “We’d have a deal for Canadians who want to come down, have a little tour of the city and go from place to place, and get a free beer or coffee.”
“I would rather take the position of being proactive and not just thinking about absorbing the problem,” Butler said. “We have a great relationship with Canada, and we see a lot of Canadians in the gallery.”
The price of imported goods
For Sam Guy, owner of Guy’s Farm & Yard in Morrisville, tariffs are raising concerns over higher prices for certain products.
Wood shavings, wood pellets and peat moss sold at the local chain store all come from Canada, while animal feed – though made by an American company – includes ingredients that come from Canada, he said.
A 25% tariff tacked onto imported products would inevitably have to be passed on to shoppers.
“We can’t eat this,” Guy said. “We’re going to pass on the tariff. We’re not going to add a margin or anything like that, but a lot of these are low margin products.”
On July 20, Andy Burnham has been chosen to be the next Prime Minister in UK. The appointment of a new Prime Minister in the United Kingdom often raises questions from people outside the country, especially when no nationwide election has taken place. Many wonder how a new national leader can assume office without voters casting ballots. The answer lies in the UK’s parliamentary system, where the Prime Minister is not directly elected by the public but is instead chosen based on who commands the confidence of the House of Commons.
How the UK Selects Its Prime Minister
Unlike presidential systems where citizens vote directly for the head of government, the United Kingdom elects Members of Parliament (MPs) during a general election. The political party that secures a majority of seats in the House of Commons usually forms the government, and that party selects its own leader to serve as Prime Minister.
If the leader resigns, becomes unable to continue, or is replaced by their party, the governing party can choose a new leader without triggering a general election. As long as the new leader is able to maintain the confidence of Parliament, they can immediately become Prime Minister after being formally appointed by the monarch.
Why No Election Was Required
A general election is not automatically required every time the office of Prime Minister changes hands. The governing party retains its parliamentary majority because voters elected MPs rather than an individual Prime Minister. If the ruling party chooses a new leader through its internal leadership process, the government continues to operate without interruption.
This constitutional arrangement provides stability and allows the government to continue functioning during periods of political transition. It also avoids the expense and disruption of holding a nationwide election every time party leadership changes.
The King’s Constitutional Role
After a governing party elects a new leader, the monarch invites that individual to form a government. This constitutional step is largely ceremonial and follows long-established conventions. The King appoints the person most likely to command a majority in the House of Commons, ensuring continuity of government.
Although the monarch formally appoints the Prime Minister, political power rests with Parliament and the elected representatives of the British people.
Could an Election Still Happen?
Yes. A newly appointed Prime Minister has the authority to request a general election if they believe it is politically advantageous or if they seek a stronger public mandate. Parliament can also reach a point where a government loses the confidence of the House of Commons, potentially leading to an election or the formation of a new government.
In many cases, however, a new Prime Minister continues governing until the next scheduled general election.
What This Means for the UK
The UK’s parliamentary democracy is designed to ensure government continuity while respecting the results of the most recent general election. Leadership changes within the governing party do not automatically alter the composition of Parliament, which is why a new Prime Minister can take office without another nationwide vote.
Understanding this process helps explain why political transitions in the United Kingdom can appear different from those in countries with presidential systems. While the Prime Minister may change, the democratic mandate of Parliament remains in place until voters elect a new House of Commons at the next general election.
On July 21, 2026, global economic analysis shifts focus toward a defining structural macroeconomic trend: the massive expansion of public and private capital deployment into high-capacity electrical grid infrastructure. As industrial electrification, automated data center hubs, and renewable energy integration accelerate worldwide, sovereign governments and institutional investors are facing a monumental economic challenge. Updating legacy power grids to meet skyrocketing demand has emerged as a primary driver of long-term capital expenditures and industrial productivity across both developed and emerging market economies.
According to international economic policy updates released this week, grid infrastructure investments are projected to exceed multi-trillion-dollar thresholds over the coming decade. Economic planners caution that without modernized, high-voltage transmission networks, regional manufacturing sectors face severe energy bottlenecks, localized power price volatility, and operational constraints. Consequently, infrastructure spending is rapidly transitioning from passive utility maintenance into a vital component of national economic competitiveness and industrial policy.
The macroeconomic ripple effects of this capital deployment are being felt across global commodity markets and labor networks. High demand for structural industrial inputs—such as copper, aluminum, specialized electrical steel, and high-capacity transformers—has created sustained pricing support for critical material producers. Simultaneously, the specialized technical labor required to manufacture and deploy modern grid hardware is driving wage growth in industrial sectors, adding a complex new layer to central bank disinflation trajectories.
For global policymakers and strategic investors, the economics of energy grid modernization represent a double-edged sword. While massive infrastructure investment boosts short-term gross domestic product (GDP) and strengthens domestic industrial foundations, it requires disciplined fiscal allocation to prevent inflationary crowding-out of private capital. Countries that efficiently streamline grid infrastructure permitting and mobilize private investment will secure lower long-term energy costs, attracting high-tech manufacturing and reinforcing sustainable economic growth.
The international trade architecture entering the second half of 2026 is undergoing a profound structural pivot. As major sovereign economic blocs adjust to the long-term impact of unilateral tariffs and escalating regional subsidies, traditional globalized supply chains are being rapidly replaced by bilateral trade corridors and regional alliance networks. Data released in late July 2026 highlights a significant divergence: while cross-continental freight volumes between non-aligned partners have cooled, intra-regional trade throughout North America, Southeast Asia, and Eastern Europe has surged to record levels. This shift reflects a broader macroeconomic strategy wherein multinational corporations prioritize geopolitical resilience over pure cost minimization.
The primary economic catalyst behind this regionalization is the proliferation of sector-specific tariffs targeting critical industries, notably battery components, clean energy technology, and advanced semiconductor hardware. In response, global manufacturers have adopted multi-tier sourcing models that distribute production across intermediate partner nations before final assembly. While this strategy successfully bypasses primary import duties, it adds structural layers of logistical complexity and administrative oversight. Economists note that while total output remains robust, aggregate production costs have drifted upward, contributing to persistent baseline inflation across major consumer markets.
Simultaneously, currency settlement patterns within these regional blocs are experiencing a notable transformation. Sovereign central banks and commercial institutions are increasingly utilizing localized currency swap lines and digital clearing mechanisms to settle cross-border trade transactions. This transition reduces direct exposure to foreign exchange volatility and mitigates third-party liquidity constraints, further solidifying regional economic cohesion. However, for developing economies situated outside these primary trading alliances, the tightening of international trade networks presents severe challenges, restricting access to key export markets and foreign direct investment.
For corporate strategists and policy analysts navigating late 2026, success requires a thorough understanding of these emerging trade corridors. Organizations must conduct regular risk assessments of their multi-tier supplier networks, model tariff sensitivities under shifting geopolitical scenarios, and invest in real-time supply chain telemetry. As regional economic blocs strengthen their regulatory borders, supply chain agility and compliance fortitude will distinguish market leaders from vulnerable enterprises in the evolving global economy.
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