Hello, this is Governor Janet Mills and thank you for listening.
On February 1, the president signed executive orders to impose a new 25% tariff on most imports from Canada. At the time of this recording, the president has indicated those tariffs will take effect on March 4.
Well, his reasons for punishing Canada are pretty unclear to me, and his reasons for punishing consumers even more unclear. You know, we share a 600-mile boundary with Canada. Canada is our largest trading partner. They come here on vacation, spend money in our resorts. Our economies and populations are deeply intertwined.
Last year alone, we traded more than $6 billion worth of goods and materials with Canada – most of that coming from Canada into Maine. That trade supports many small businesses across Maine, many of whom produce things like potatoes, blueberries, lobsters, forest products, aircraft parts, housing, machinery. Businesses like Wyman's, Twin Rivers, Eimskip, Luke's Lobster, for example, are all deeply connected to Canada.
Maine businesses and Maine people rely on Canada as well for a major source of energy – heating fuel, gasoline, natural gas, electricity. More than 80% of Maine's heating fuel and gasoline is imported from Canada, and 50% of our homes rely on oil for home heat. And of course, we don't have fossil fuel reserves of our own. Irving Oil from New Brunswick warned customers across New England that if the president's tariffs on Canada are enacted, they will have to increase prices, and that means higher prices at the pump, higher prices to heat our homes.
Although our economy is deeply entwined with Canada's, we also will be significantly impacted by tariffs on China and Mexico as well. Maine trades more than $315 million worth of goods and materials with China and more than $165 million worth of goods and materials with Mexico every year. We don't think about this too often, but it's true. The president has claimed that these other countries will somehow pay the tariffs and that's it, but the reality is the increased costs will clearly be passed on to us.
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. 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.
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.
Remember the president campaign on a commitment to lower the price of eggs, bread, heat, housing, cars, all the everyday goods that we all rely on?
Well, the president is now doing the opposite and Maine people, businesses, and communities will pay the price.
This is Governor Janet Mills, and thank you for listening.