Maine
Trump policies expected to cause 25% drop in Canadian tourism to Maine
Maine could see a 25% drop in Canadian tourists this year because of economic insecurity, the prospect of higher prices driven by new tariffs and lingering animosity over President Donald Trump’s talk of annexing their country, the state’s top tourism official said Friday.
In a typical year, about 900,000 Canadians vacation in Maine, supporting local economies in beach communities like Old Orchard Beach, said Carolan Ouellette, director of the Maine Office of Tourism. But she expects to see 225,000 fewer visitors this year because of federal policy changes and political rhetoric that have upended relations with Maine’s northern neighbor and most important trading partner.
That drop is likely to be part of a larger decline in international visitors more broadly. Ouellette had expected an 8.8% increase in international visitation, but now she expects it to drop by about 9.5%.
Canadians account for about 5% of Maine’s overall tourist visits, but they are a vital piece of the market from some communities and businesses.
“Anecdotally, we are hearing stories about cancellations that are occurring,” she said. “It’s a very mixed impact across the state. In some areas and some properties, this is critically part of their visitor base overall in Maine.”
Ouellette’s sober assessment comes as state lawmakers are grappling to understand how Trump’s first few months in office will impact the state revenues.
In addition to the tariffs announced this week, Trump has worked to slash federal spending and the federal workforce, and his administration has been threatening to pull other funding from Maine because of an ongoing dispute with state officials over transgender athletes and diversity, equity and inclusion policies.
The state’s independent, nonpartisan economic forecasting commission met earlier this week and made modest downward adjustments to income projections and increasing expectations of inflation. But it remains unclear which of Trump’s policies, especially his sweeping tariffs and his efforts to cut federal grants from Maine, are here for the long haul.
That economic outlook is a key component for the nonpartisan panel trying to provide the Legislature with a revenue forecast so lawmakers know how much — or how little — additional tax revenue they will have to supports state programs and services. The Revenue Forecasting Committee is expected to meet April 28 and deliver its report to lawmakers by May 1.
Sheena Bunnell, an economic professor at the University of Maine in Farmington and chair of the Consensus Economic Forecasting Commission, said the state and national economies have strong foundations that will likely withstand the effects of Trump’s new tariff regime in the long term and that they could even prosper if companies bring manufacturing operations back to the U.S., as the administration hopes.
But Bunnell also criticized Trump’s “sledgehammer” approach to tariffs as a “very painful way” of resetting the economy and predicted that Maine residents and business could experience financial pain and uncertainty in the short-term.
Expectations for short-term pain is reflected in the stock markets, which this week experienced their largest declines since the COVID-19 pandemic shut down the economy. And the countries targeted by Trump’s tariffs are already announcing retaliation, escalating the global trade war.
But Maine’s economy has weathered similar storms in the past, Bunnell said.
“We have been through pretty tough times in the past, including the financial crisis, COVID and now this. So we’ve had three shocks since 2007, and we have done fine,” she said.
It’s unclear how long that short-term uncertainty and pain will last, however. Bunnell predicted uncertainty about the direction of the economy could last six months or so, but Trump himself has indicated it could take two years before the U.S. could see any manufacturing resurgence resulting from the tariffs.
Even six months of uncertainty would be hard for Maine tourism businesses to swallow.
“That six months of uncertainty is our prime travel season,” Ouellette said.
Republicans on the Appropriations and Financial Affairs Committee, which heard presentations Friday form tourism officials and the state economist, were more optimistic that Maine would weather the drastic changes in federal policy, especially in terms of tourism. They expect tourists from other states, as well as locals, will fill the void being created by a drop in Canadian tourists.
Rep. Amy Arata, R-New Gloucester, said she was looking forward to a summer with fewer tourists.
“I’ve lived in Vacationland most of my life and often during the best time of year I can’t find a room anywhere and the beaches are crowded, there’s no parking,” Arata said. “So, on the bright side, I look forward to taking my family and having some staycations in Maine … and I think that other Mainers will do the same thing.”
Filling the gap with tourists from other states may not be easy.
Ouellette said that the overall drop in international tourism will cause larger states, including New York, Florida, California and Texas, to also ramp up marketing efforts aimed at U.S. tourists.
Ouellette said that about 80% of tourists drive to Maine, and other states will be targeting the same travelers in the greater New England and mid-Atlantic areas.
“Everyone targets that market heavily,” she said. “So it will be a very competitive landscape, particularly with destinations up and down the East Coast looking to target that same drive market.”
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This story will be updated.
The Maine Department of Transportation is moving to slash up to $400 million in projects from its agenda, a shocking and abrupt cutback that is rattling the state’s construction industry at the start of building season.
Roughly $50 million across six pavement projects have already been delayed, according to a memo exclusively obtained by the Bangor Daily News. The agency plans to cut or delay another $150 million in bridge, highway, intersection and multimodal projects later this month. A further $200 million or more in cuts are planned in the next three-year work plan.
Those figures were outlined by Transportation Commissioner Dale Doughty in the May 18 memo to Gov. Janet Mills that has since circulated widely in the transportation sector, which has been getting drip-by-drip details on the wide scope of the cuts over the past three weeks.
It comes at the beginning of the state’s relatively narrow construction season. Companies have hired workers and ordered materials for projects they expected to begin this summer. The severity of the transportation budget problems was not raised to lawmakers during the 2026 legislative session.
Kelly Flagg, executive director of the Associated General Contractors of Maine, called the shortfall “deeply troubling” in a statement.
“We stand ready to work with policymakers, stakeholders, and industry partners to identify both immediate and long-term solutions,” Flagg said. “Maine cannot afford to fall further behind.”
Insiders saw this first.
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The cuts stem from a structural funding gap of at least $130 million in the state’s current work plan, according to Doughty’s memo. Losses are magnified because state money from the gas tax and other revenue sources is matched by federal funds. Lawmakers have long grappled with politically difficult long-term problems with the state’s transportation budget.
A Mills spokesperson said Wednesday morning that the administration was working on a response to questions from the BDN. The department says it needs roughly $240 million more in state capital funding annually to maintain the existing system, and that anything less than $200 million will erode it over time.
Doughty’s memo the only near-term solution is a series of bonds beginning as soon as possible. Lawmakers would have to return to Augusta to authorize that if one is going to appear on the November ballot.
The BDN Opinion section operates independently and does not set news policies or contribute to reporting or editing articles elsewhere in the newspaper or on bangordailynews.com
Michael Capeci is the former chairman of the Bangor GOP.
Let’s be honest about Maine’s current state.
For many families, the cost of living has become unsustainable. Housing is out of reach for many young people. Energy bills keep rising. Many small businesses are struggling under taxes and regulations that make it harder to grow. Rural hospitals are under strain and despite years of increased state spending, the results are not showing up in people’s daily lives.
Concurrently, Maine continues to lose young workers to other states. That is not a statistic, it is a warning sign.
To me, the question in this Republican primary for governor is not about slogans. It is whether we continue with a political approach that has failed to reverse these trends, or whether we nominate someone with new ideas. I think that someone is Owen McCarthy.
Owen is not a political insider. He is an entrepreneur from Patten, a small town where opportunity is not assumed, it is built. He grew up in a working-class family, became the first in his family to graduate from college graduating from the University of Maine, and founded MedRhythms, a healthcare technology company focused on neurological treatment.
He didn’t just talk about opportunity. He built it. That distinction matters, because Maine’s problem is not a lack of debate it is a lack of results. We have seen the trajectory: higher costs, slower growth, and a steady outmigration of young workers. I believe Owen McCarthy represents a break from that pattern.
His Maine 2040 plan focuses on creating 50,000 new jobs in sectors where Maine has real advantages — maritime and defense, advanced forest products, and life sciences. These are export-driven industries tied directly to Maine’s workforce, geography, and institutions. What sets Owen apart is not only what he proposes, but how he approaches governing.
He prioritizes modernizing permitting so projects do not stall. He supports using technology to reduce costs and increase efficiency. He focuses on making it easier to build, hire, and expand in Maine.
That same practical mindset extends to healthcare. Expanding telehealth, strengthening EMS systems, improving provider flexibility, and shifting toward earlier intervention are not abstract reforms. They are system upgrades designed to improve access while controlling costs.
Maine voters consistently respond to competence. They reward candidates who understand problems and present plans to solve them. I believe they are tired of rhetoric that does not translate into results, and skeptical of politics that prioritizes messaging over execution.
Owen’s approach is grounded in solving the issues that shape daily life — affordability, healthcare access, job creation, and government efficiency. That is not just policy positioning. It is a governing model that speaks directly to voters.
Some will point to his lack of political experience. But I believe Maine’s core problems are not the result of insufficient political experience; they are the result of policies that have failed to deliver measurable improvement. Experience inside a broken system, by itself, is not a solution.
If Republicans want to win, this primary must be taken seriously. From my perspective, it is not about choosing a nominee for governor who can energize the base. It is about selecting someone who can compete in a broader electorate that is frustrated and looking for change.
That requires a candidate who can speak beyond the base, not by abandoning principles, but by demonstrating competence and a credible plan to address Maine’s challenges. I believe Owen McCarthy offers that combination. He represents a shift away from managed decline and toward economic execution.
This is not just another primary. It is a decision about whether Republicans position themselves to win Maine or whether they remain trapped in a cycle of repeating the same strategies and expecting different outcomes.
If Republicans want to compete for Maine’s future, they cannot afford to nominate a candidate who only motivates part of the electorate. They need someone who expands it.
I believe Owen McCarthy is that candidate.
And if the goal is to win Maine, then the choice should be unmistakable
The only notable change in the top-seven of the Varsity Maine baseball poll is that Gorham now has eight first-place votes, two more than last week. The order of the seven teams is identical. In fact, the only change in the top-seven over the past three polls is the swap at the top after Gorham’s win over South Portland on May 19.
Furthermore, Gorham, South Portland, Oxford Hills, Cheverus, Bangor, Mt. Ararat and Fryeburg have been ranked in the top seven for four straight weeks, and six of those squads have been among the top seven in every poll this spring.
Meanwhile, Scarborough is ranked for the first time since May 5, and Ellsworth and Thornton swapped spots.
The Varsity Maine baseball poll is based on games played before June 2, 2026. The top 10 teams are voted on by the Varsity Maine staff, with first-place votes in parentheses, followed by total points.
1. Gorham (8) 89
2. South Portland 79
3. Oxford Hills (1) 75
4. Cheverus 55
5. Bangor 42
6. Mt. Ararat 41
7. Fryeburg Academy 30
8. Ellsworth 27
9. Thornton Academy 25
10. Scarborough 12
Also receiving votes: Washington Academy 8, Monmouth Academy 4, Cony 4, Leavitt 2, Falmouth 2.
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