Photo / Courtesy of the Maine State Chamber of Commerce
Patrick Woodcock
February 6, 2025
Commentary
Maine's wake-up call on trade: Why we can't take our relationship with Canada for granted
Photo / Tim Greenway
In 2024 alone, Maine imported $4.4 billion in goods from Canada, Maine State Chamber of Commerce President and CEO Patrick Woodcock notes in a commentary for Mainebiz.
By Patrick Woodcock, Maine State Chamber of Commerce
A relationship reveals itself when it is tested, and over the past week we have had a stark reminder of the importance of Maine’s trade relationship with Canada.
On Monday with a pending tariff regime taking place, the Maine State Chamber of Commerce received dozens of inquiries from Maine businesses on the scope and direct impact on their bottom line.
While we are relieved the administration has decided to delay the imposition of these tariffs and encouraged that the leaders of Mexico and Canada are engaging to address North America’s shared challenges, this past week was a strong reminder that we cannot take our trading relationship with Canada for granted.
Canada is Maine’s largest trading partner and the numbers tell the story. In 2024 alone, Maine imported $4.4 billion in goods from Canada, including fuels, wood pulp and seafood. More than two-thirds of Maine’s imports come from Canada, and over half of our exports head north.
Our economies are deeply intertwined — not just in raw numbers, but in business operations with Maine companies relying on Canadian mills, processors and cross-border supply chains.
The real cost of tariffs
A 25% tariff on Canadian goods would be a direct hit to Maine’s economy. The impact would be immediate and severe for industries already operating on thin margins. Lobster processors, who rely on Canadian facilities, could see costs rise while demand declines. Meanwhile, manufacturers with cross-border supply chains could be forced to raise prices or absorb unsustainable losses.
Energy costs are another major concern. According to the New England-Canada Business Council, New England imports about $10.2 billion of heating oil, diesel fuel, natural gas and electricity from Canada annually. Maine alone imports billions of dollars in energy from Canada, and a 10% tariff would drive up fuel and electricity prices — just as businesses and households struggle with winter heating costs.
Maine businesses need stability, not disruption
While we support the administration’s efforts to strengthen domestic industries, tariffs of this scale would do more harm than good. These tariffs would be particularly damaging to our state’s economy given Maine’s unique and significant trade position with Canada.
The path forward
The 30-day delay in implementing these tariffs provides an opportunity — but only if we use this time effectively.
Maine’s business community must make its voice heard. Our message must be clear: Trade policy changes must account for Maine’s unique economic ties with Canada, and any effort to impose tariffs should be targeted at areas that serve our national security and do not undermine economic growth.
Maine businesses need predictable, stable trade policies. We must advocate for fair trade solutions that support domestic industries without imposing unnecessary costs. Now is the time for policymakers to ensure Maine’s economy remains strong and competitive in an interconnected world.
This week has shown us what’s at stake. We can’t afford to take our relationship with Canada for granted.
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