New tariffs on some Canadian imports were expected to go into effect Wednesday in the newest installment of the trade conflict between the Trump administration and Canada, with Maine caught in the middle.
While not all imports from Maine’s northern neighbor will be hit with the new 50% tax, some affected goods could impact the state’s forest product industry. Plus, the tariffs will likely fuel economic uncertainty that experts say could fissure long-established cross-border ties.
The new duties, issued by President Donald Trump last month under an unused provision of the Great Depression-era Smoot-Hawley Act, were framed in three tariff proclamations as retaliating for Canada’s unfair trade practices on cars, dairy and alcohol. About $20 billion worth of annual Canadian imports to the U.S. would be affected.
Unlike previous tariffs imposed under the second Trump administration, these duties are aimed at specific Canadian goods — not all imports.
The tariffs include several kinds of plywood, finished paper products and chemical wood pulp — a primary component in paper manufacturing, one of Maine’s most prominent cross-border industries. Also included are cars, dairy products, wine, beer, some machinery, hockey equipment, cement, furniture and dozens of other products.
Not included: energy and fisheries — two of Maine’s biggest Canadian import categories.
There still seems to be a chance the duties could be called off: Trump and Canadian Prime Minister Mark Carney spoke over the phone Monday, and trade teams were in last-minute, high-stakes negotiations Tuesday afternoon.
Carney told reporters Monday that those talks were “intense and delicate,” and that he was prepared for “any situation that may arise.”
Patrick Woodcock, the president and CEO of the Maine Chamber for Commerce, said Tuesday he hopes those talks yield a comprehensive deal, and that he was optimistic at the news of Carney and Trump engaging directly.
He said he is not particularly surprised no agreement has yet been reached; the second Trump administration has often tried to use tariffs as leverage until the last second, he said.
But, he said, if the tariffs go into effect as planned at 12:01 a.m. Wednesday, Maine will feel the long-term impacts of what would be a historic low in U.S.-Canada relations.
“If these proceed, it’s a statement of uncertainty,” Woodcock said. “A deal would provide stability.”
That uncertainty, he said, might impact Maine businesses more than the tariffs themselves, which mostly apply to finished goods.
Tourism and cross-border relationships may take the hardest hit of all, Woodcock said.
The White House did not immediately respond to a request for comment.
This story was originally published by the Maine Trust for Local News. Ethan Horton can be reached at ehorton@centralmaine.com.