A looming global trade war triggered by new U.S. tariffs on Mexico, Canada, and China has sparked concerns about higher prices and supply chain disruptions in Maine.
On Saturday, President Donald Trump signed an executive “economic emergency” order imposing 25% tariffs on imports from Mexico and Canada and an additional 10% levy on goods from China. Energy imports from Canada, including oil, gas and electricity, are to be taxed at a lower, 10% rate.
The move set off a chain of retaliatory threats and financial market reactions. Stock markets in Asia and Europe fell early Monday, and futures markets pointed to declines on Wall Street as well. The U.S. dollar rose to a two-year high, making U.S. exports more expensive abroad.
The head of Maine’s largest business group is especially worried about taxing imports from Canada, the state’s largest trading partner.