Trump’s tariffs take aim at a key New England trading partner: Canada
New Hampshire Public Radio | By Todd Bookman
Home heating oil. Lumber. Seafood. Airplane parts.
Businesses and consumers across New England rely heavily on these and other Canadian imports, raising fears about the trickle down costs of President Trump’s imposition of a 25% tariff, which went into effect Tuesday.
“This is not in the best interest of growing the economy of New England, and I don’t know too many people that would disagree with that,” said Jim Brett, president of the New England Council, a regional business organization.
The new tax on imports from Canada, a similar tariff on Mexico, as well as an additional 10% tariff imposed on China are rattling global markets and prompting retaliatory trade measures that could harm American exporters.
New England states appear critically reliant on Canadian imports: Canada is the region’s largest single trading partner, accounting for $27 billion in goods in 2024, according to the most recent U.S. Census data.
Across the region, affected sectors include fuel oil, seafood, precious metals and animal feed. In New Hampshire alone, Canadian imports were valued at just under $2 billion last year, with fuel oil, engines and turbines, seafood and lumber the largest sectors.
“People forget how integrated and how essential the trade is, because it has worked so well for so long,” said John Gulliver, president of the New England-Canada Business Council, a non-profit group that advocates for closer financial and cultural ties.
He said some goods, including some aerospace components, seafood and wood products, may move back and forth across the border between factories in Canada and the U.S. multiple times, as part of the regional supply chain, before they reach consumers.
“Prices will increase for everybody,” he said.
Fear of sticker shock for fuel, groceries
New England is particularly reliant on fuel and other energy imports from Canada. Trump imposed a 10% tariff on that sector, instead of the full 25% tax other industries are facing. But experts say even that additional cost is still likely to be passed on to consumers.
Dan Dolan, with the New England Power Generators Association, said consumers are likely to see immediate impacts in the cost of gas and home heating oil. He added that there are few details about how electricity prices may be affected, if at all, by the tariffs.
Read more: What do Canadian tariffs mean for your energy bills?
According to the Canadian Consulate, 90% of Boston Logan International Airport’s jet fuel comes from Canada.
At a time when high food prices continue to drive frustration for shoppers, a 25% tax on Canadian agricultural imports may mean even more sticker shock at grocery stores.
New Hampshire imported $154 million in agricultural products from Canada in 2023, according to a report from the Canadian government, including $61 million in pork, $17 million in maple syrup, and $13 million in yeasts.
Representatives of Maine’s lobster industry are raising the alarm about how the tariffs could impact its closely connected supply chain with Canada.
“Maine lobstermen are concerned tariffs will not only drive down the price they are paid, but also result in reduced sales, jeopardizing jobs, and livelihoods in our coastal communities,” the Maine Lobstermen’s Association said Tuesday.
Retaliatory tariffs on the way
Canada and China both announced retaliatory tariffs in response to the moves out of Washington, with Mexico intending to announce its own package of import taxes on Sunday.
All three countries are also prime markets for exported goods out of New England. In announcing the tariffs, Trump said they were intended, in part, to punish Canada and Mexico for not doing enough to stop the flow of fentanyl across the U.S. border.
Gulliver, with the New England-Canada Business Council, noted that there is little evidence of large quantities of fentanyl crossing the northern border, and that law enforcement should work together to stem whatever flow there may be. “It’s not a trade issue. It’s not an unfair competition issue,” he said.
Political officials Tuesday began warning of the economic impact the newly announced tariffs may have on the local economy.
In a statement, New Hampshire Gov. Kelly Ayotte, a Republican, said that “a trade war with Canada, one of our top trading partners, will be detrimental to New Hampshire, and I am urging the White House and Canadian leadership to come to a deal before prices rise and our families and businesses are impacted.”
Speaking on the Senate floor Tuesday, New Hampshire Sen. Jeanne Shaheen, a Democrat, said that the tariffs will function as a new tax on everyday purchases, as well as automobiles and home construction.
“These tariffs do nothing to bring down those costs,” she said.