Maine consumers will likely see increased prices of gas, home heating oil and electricity because of President Trump’s new tax on imported Canadian energy.
But the precise effect of tariffs and how long they might last are still unclear.
About 80% of the gasoline, diesel and home heating oil burned in Maine comes from across the northern border.
That leaves the state vulnerable to a 10% tariff on imports from Canada, according to John Gulliver, president of the New England Canada Business Council.
"I think it is fair to say we are heavily reliant on our trade, both imports and occasionally exports, of energy products of different kinds to Canada," Gulliver said.
Irving Oil, which owns the New Brunswick refinery that makes most of Maine's petroleum products, in February said tariffs would increase prices for U.S. customers.
And impacts could be felt swiftly as fuel dealers draw down existing stocks of Canadian fossil fuels. Gilliver said that could ripple across the economy.
"A disruption of this kind of proportion will have only economic pain and adverse impact, short term and intermediate term and probably long term across the border for our two peoples," he said.
For 58,000 customers in northern and eastern Maine, tariffs may be a direct hit. That's because they are exclusively tied to the New Brunswick electric grid.
Van Buren Light and Power manager Bill Schofield says the tariff will cost the consumer-owned utility $120,000 dollars more per year.
That could jack up annual bills by almost $100 for 1,300 ratepayers in the Aroostook County border town. The utility is currently negotiating a new contract with its Canadian power supplier.
"Most everyone understands that we're doing the best we can for them," Schofield said. "Ultimately we don't have an option."
The Trump administration enacted tariffs on Canada and Mexico after a month-long reprieve.
But Charlie Summers, president of the Maine Energy Marketers Association said the trade group is still trying to understand how the tariffs will be rolled out and what the effect will be on consumers.
The association represents fuel dealers, gas stations and convenience stores.
"We're working to try and interface with the administration and get a clearer picture of exactly what this may, in fact, look like a week from now, a month from now," Summers said.
Energy is just one example of how Maine's economy is intertwined with its northern neighbor, the reason elected officials have warned a trade war could have serious consequences for the state.
