Gov. Janet Mills speaks during a new conference on the novel coronavirus, March 12, 2020, in Augusta, Maine.
Gov. Janet Mills warned over the weekend that President Donald Trump's proposed 25% tariff on Canadian goods will mean higher prices for Mainers on heating oil, gasoline, food and other everyday essentials.
“When Maine businesses have to pay higher tariffs to import materials they need, building supplies or other things, or pay to export their finished products, they will be forced to pass those costs along to Maine consumers at a time when we can least afford it," the Democratic governor said in her weekly radio address. "These tariffs clearly will result in higher prices on everything from fruits and vegetables, flat screen TVs, and auto parts and building supplies. This will cost more than $1,200 annually in purchase power for the typical United States household. I would estimate more for Maine households given our interrelationship with Canada."
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Mills pointed out that Maine's economy is deeply intertwined with Canada. Last year alone, the state traded over $6 billion in goods with its northern neighbor. Over 80% of the state's heating oil and gasoline is imported from Canada.
“I can't be clear enough: the president's broad tariffs on Canada as well as China and Mexico will increase costs on Maine families and Maine businesses who can ill afford them, and they will cause great harm to our state's economy."
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Massachusetts Gov. Maura Healey also issued a statement Monday warning of a spike in gas prices and electric bills if the Canadian and Mexican tariffs take effect.
“These tariffs were a bad deal last month, and they’re still a bad deal now. President Trump is putting a tax on energy, housing, groceries, cars, electronics, and appliances that we rely on – and we will all pay the price,” Healey said. “At a time when we should be working to lower energy costs, President Trump’s tariffs will cause gas and heating costs to skyrocket on Massachusetts residents and businesses. Donald Trump should be focused on making life easier and more affordable – not picking destructive fights with our allies and largest trading partners that raise costs on everyone. This is a lose-lose that we can’t afford.”
She said the Canadian tariff alone could result in a $910 million a year increase in energy costs for Massachusetts residents and over $2.5 billion for the entire New England region.
Trump's 25% tariff on Canadian and Mexican goods is expected to go into effect on Tuesday.
Some economists have raised concerns about the possibility that the tariffs could lead to an increase in inflation and keep interest rates elevated into 2026. But Treasury Secretary Scott Bessent said Sunday that he does not think that will happen.
