Maine’s congressional delegation is calling on President Donald Trump to avoid a trade war with Canada.
That comes as Trump plans to impose 25 percent levies on goods from Canada and Mexico and double the 10 percent tariffs on Chinese goods on Tuesday. Canadian energy products would be subject to a 10 percent tariff. Canada and Mexico have vowed to retaliate with tariffs of their own.
He proposed those tariffs in early February before quickly delaying them for a month after receiving pledges from Canadian and Mexican leaders related to drug trafficking and immigration.
In a letter dated Feb. 28 to Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, U.S. Sens. Susan Collins and Angus King and U.S. Rep. Chellie Pingree called Canada a “trusted friend and ally” with which the United States has substantial trade ties.
In 2023, about $1 trillion in goods crossed the U.S.-Canada border, which supported 8 million jobs in the U.S. In Maine alone, $6 billion in goods traversed the border, and trade with Canada supports 60,000 Maine jobs, according to the delegation.
“We acknowledge that targeted and strategic tariffs can be an important tool to address unfair trade practices. However, small businesses and families in Maine and across the country will be caught in the middle during a time when so many are struggling to put food on the table and keep the lights on,” the delegation wrote in the letter.
U.S. Rep. Jared Golden didn’t sign the letter. Golden has been a vocal supporter of Trump’s trade policies, saying in February that Trump was gaining leverage with his tariffs over Canada and Mexico. Last year, Golden p roposed a 10 percent universal tariff on all imports.
About 70 percent of imports in Maine come from Canada, and 30 percent of the state’s exports are destined to the north, including between $200 million and $400 million of lobster shipped to processors over the border annually.
Nearly all of Maine’s heating oil comes from Canada, and when Trump initially announced the tariffs, Irving Oil sent a notice to customers informing them that their bills would rise to offset the tariffs.
Unlike other parts of the country, New England has a much lower refinery capacity, meaning it relies more on Canada for refined products, while other regions source crude from Canada for processing domestically.
Patrick De Haan, head of petroleum analysis for GasBuddy, told the Bangor Daily News in early February that Mainers could see a 10- to 20-cent increase for a gallon of gas and a 20- to 30-cent increase per gallon of home heating oil.
ISO New England warned last week that Trump’s tariffs could increase electricity costs for New England between $66 million and $165 million. About 9 percent of the electricity for New England comes from either Canada or New York, according to ISO New England.
If electric energy isn’t exempt from tariffs, questions remain about how those duties would be collected, and ISO New England cautioned it may not have sufficient funds on hand to cover them.
“Ultimately, it is our hope that the Trump Administration is able to work collaboratively with Canada to address issues of shared concern and foster economic cooperation, rather than engage in a tit-for-tat trade war,” Maine’s delegation wrote.
