Canadian Tariffs Hit Maine Businesses, Trade War Escalates

Maine businesses are bracing for the impact of new Canadian tariffs, which took effect on Tuesday. The tariffs target $20 billion worth of goods from Canada, matching the US dollar for dollar.

The affected goods include steel, perfume, video game consoles, golf clubs, fishing rods, steel, aluminum, and even jackets and t-shirts. This covers about 6 percent of last year's US exports to Canada.

Tariff consultant Kyle Peacock believes businesses in border states and provinces will feel the squeeze of both sets of tariffs the most. He expects some businesses to shut down entirely due to increased costs.

Small Maine businesses like Smiling Hill Farm and Hillside Lumber are getting caught in the crossfire. Michael Knight, co-owner of both farms, believes they can sustain themselves domestically but is concerned about the impact on the lumber industry.