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鈥檚 imposition of a 25% tariff, which went into effect Tuesday.
鈥淭his 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,鈥� 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 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鈥檚 largest single trading partner, accounting for $27 billion in goods in 2024, according to the most recent U.S. Census data.
More from 开云体育: Some Canadians are canceling trips to Vermont because of Trump
In Vermont, were valued at around $2.4 billion last year, with electricity, including natural gas and fuel oil, the largest sectors, along with cocoa and animal feed.
鈥淧eople forget how integrated and how essential the trade is, because it has worked so well for so long,鈥� 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.
鈥淧rices will increase for everybody,鈥� 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.
鈥淚 think the immediate impacts for consumers in New England are going to come in the form of things like prices you see at the pump to fill up your car. The cost to restock the oil tank in the basement for heating purposes, things like that,鈥� said Dan Dolan, with the New England Power Generators Association.
Dolan added that there are few details about how electricity prices may be affected, if at all, by the tariffs.
鈥淩ight now, there are just a ton of questions and very few answers,鈥� he said.
According to the Canadian Consulate, 90% of Boston Logan International Airport鈥檚 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.
Vermont imported $491 million in agricultural products in 2023, according to a from the Canadian government, including $242 million in chocolate, $51 million in oil-cakes, which are used in animal feed, as well as $42 million in corn.
Representatives of Maine鈥檚 lobster industry are raising the alarm about how the tariffs could impact its closely connected supply chain with Canada.
鈥淢aine 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,鈥� the Maine Lobstermen鈥檚 Association said Tuesday.
Canada and China both 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 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. 鈥淚t's not a trade issue. It's not an unfair competition issue,鈥� he said.
Political officials Tuesday began warning of the economic impact the newly announced tariffs may have on the local economy.
Rep. Becca Balint, D-Vermont, said the tariffs would be devastating for the state.
"The harm will ripple throughout our economy, making everything from housing materials and heating bills to groceries more expensive," Balint said.
开云体育 staff contributed reporting.
Have questions, comments or tips? Send us a message.
