Maine-Canada border town businesses hurting thanks to tariffs on $6B trade relationship, bracing for it to 'get worse'

Yahoo

14-03-2025

President Donald Trump has rolled out his long-awaited tariffs on Canada, Mexico and China, and the impact on Maine businesses is already being felt.
"Our metal roofing is going to go up 25%, as well as Sheetrock,' Ethan McGary, who works at Horten Building Supplies, told NBC News Center Maine.
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The 25% import tax on Canadian goods, along with a 10% tax on energy imports, could have significant ripple effects in Maine, which traded nearly $6 billion with its northern neighbor last year.
"Prices are already high, so it's just going to get worse," McGary said.
McGary noted that the rising costs will make it harder to stock the usual amount of materials on shelves — and will drive up prices for customers hoping to start new projects or finish repairs.
"Contractors are going to have to raise their prices," McGary said.
"Building the average home is going to cost more."
Building supplies aren't the only items being impacted by the tariffs.
Mitch Holmes, owner of Aroostook Auto Tech, has already noticed price hikes from last month's proposed tariff increase, from 10% to 25%, on Canadian aluminum. With the new higher tariff rate now in place, he anticipates even higher costs for auto parts in the coming months.
"A lot of the undercarriage, a lot of your suspension components, engine blocks, cylinder heads — I'm seeing bottom-line invoice prices that I've never seen before," Holmes said.
Houlton's energy comes from New Brunswick Power, and locals are bracing for higher utility bills as a result.
"We just changed over our transmission lines, and everything was going smoothly, but we're going to see those rates go up now,' Jane Torres, director of the Greater Houlton Chamber of Commerce, told News Center Maine.
Owner of Chadwick Florist and Greenhouses Tammy Malvie noted that flower prices have jumped 25%, which could lead to a drop in sales.
"We're anticipating that spring sales will be down significantly," Malvie said.
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'The president's broad tariffs on our major trading partners will increase prices for Maine people and businesses and cause havoc to our economy,' Maine Governor Janet Mills said in a statement on Mar. 6.
Here are 5 steps businesses can take to help shield themselves.
Take a close look at where your products come from — are you heavily reliant on countries like Mexico, Canada or China? Start looking at alternate suppliers.
High-margin products offer more flexibility with pricing. This could allow you to raise prices less aggressively while keeping a healthy margin — even if it's smaller than before the tariffs.
If your products rely on imports that will be hit by tariffs, consider stocking up now before prices rise. Assess your inventory turnover and comfort with debt before making a decision.
Can you extend the life of your current equipment? Do you need to buy new fixtures or hire more staff right now? As labor costs continue to rise, cutting unnecessary expenses will help maintain your bottom line.
If you need to raise prices, be transparent with your customers about why. Remind them of the value, quality or uniqueness of your products to justify the increase, and thank them for their ongoing loyalty.
Many business owners, like Malvie, are concerned about the relationships with their long-standing Canadian customers, so maintaining transparency is key.
"That border patrol line,' Malvie says, 'doesn't stop them from being our family and friends.'
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.