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Updated: 0 sec ago News Analysis

For Maine companies navigating tariffs, the road is about to get bumpier

Road with danger signs Photo / Pixabay At a minute after midnight this coming Thursday, new U.S. tariffs on more than 60 countries are set to kick in.

Days before sweeping new tariffs on U.S. imports from dozens of countries are scheduled to take effect, Maine business leaders are predicting continued disruptions for companies trying to navigate the changes. 

At a minute after midnight on Thursday, tariffs on more than 60 countries are set to kick in, with Canada’s rate going up from 25% to 35% and Brazil to be taxed at 50% over policies that President Donald Trump claims threaten national security, foreign policy and the U.S. economy.

While there’s always the possibility for last-minute negotiations and climbdowns, Maine business leaders are bracing for a continued rough ride for businesses navigating the ever-changing trade rules.

Sarah Bryan
File photo / Courtesy of the Maine Brewers' Guild
Sarah Bryan

"The tariffs have fluctuated rapidly — announced, paused, raised and reshaped through executive orders — creating a climate of chaos and uncertainty that disrupts tourism, financial planning and supply chain stability,” Sarah Bryan, executive director of the Maine Brewers’ Guild, told Mainebiz.

“With particular respect to our Canadian neighbors to the north, we share more than a border, we share mutual economic interest,” she said.

“From aluminum cans and steel kegs to brewing equipment and raw materials, Maine breweries depend on affordable, reliable imports from Canada to keep operations running,” she noted. “This trade friction and the new 35% tariff rate not only undermines decades of economic cooperation between Maine and Canada, our largest international trading partner, but places disproportionate burdens on Maine residents, workers and locally owned enterprises.”

'One-two punch'

The imminent trade tax increases come on top of a report Friday of weaker-than-expected U.S. employment growth in July and data revisions showing that fewer jobs were created in the previous two months than initially announced.

Patrick Woodcock of the Maine State chamber of commerce
FILE PHOTO / Courtesy of the Maine State Chamber of Commerce
Patrick Woodcock

Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce, said the “materially low” jobs number could signal a new chapter for the labor market, adding that “the combination of the tariff announcement last night is a bit of a one-two punch." 

He also expressed concern about the additional friction with Maine’s neighbor to the north.

“A few weeks ago we were hopeful that Canada would join the U.K. in being part of an agreement — maybe one that was short of details, but create stability in our bilateral relationship and create predictability for Maine businesses,” he said. “It is disappointing that there wasn't an agreement and the timeline for Canadian tariffs is accelerated, which is abrupt for some planning purposes."

However, Woodcock noted that the scope of the products subject to U.S. tariffs is more limited, with an exemption for products covered by the U.S.-Mexico-Canada Agreement. Nor are heating oil and electricity expected to be affected by the planned increases, he said.

Manufacturers 'optimistic'

John Lewis of the Manufacturers Association of Maine
File photo
John Lewis

Taking a more measured view of the new tariffs, John Lewis, executive director of the Manufacturers Association of Maine, said that companies in the sector are adapting in different ways to a changing global trade environment.

For example, some of the trade group's members have benefited from on-shoring efforts, strengthening domestic supplier relationships and improving resilience, while others proactively adjusted their supply chains ahead of expected changes, according to Lewis.

“While challenges persist, we remain optimistic,” he said. “Maine companies continue to find practical solutions that allow them to stay competitive and support jobs here at home.” 
 

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