The head of the Maine State Chamber of Commerce is echoing concerns that the state could be swept up in a global recession sparked by President Trump's tariffs.
Chamber president and CEO Patrick Woodcock said the business group had been most concerned headed into Wednesday's announcement about how additional tariffs on Canada would affect Maine's economic ties with its largest trading partner. But while Trump largely maintained the status quo with Canada, Woodcock said his global tariffs raise other concerns.
"There's a de-escalation with Canada and Mexico and a severe escalation with all of our other trading partners," Woodcock said in an interview on Friday.
"What has initially been a concern about Maine's specific exposure has really been replaced with what are the impacts on the global economy and outlook for national and global GDP (gross domestic product)?" Woodcock said. "Although Maine clearly has a specific exposure to trade policies with Canada, we really would be swept away with any recession, nationally and globally."
Maine imported more than $4.7 billion in goods from Canada last year, representing roughly 70% of all imports into the state. Leading those imports were heating oil, gasoline and other petroleum products. In turn, the state exported $1.3 billion in goods to Canada, which was more than the combined total for the next nine export markets.
Trump did not announce any new tariffs on Canada on Wednesday beyond what his administration had put in place last month, although a new 25% tariff on imported cars and auto parts will severely impact producers and drivers on both sides of the border. But the Trump administration did impose 10% baseline tariffs on imports from most other countries plus significantly higher tariffs on many of the country's largest trading partners, including China, Japan and the European Union.
Woodcock said he supports Trump's long-term goal of reviving American manufacturing. That's a key reason the president gives for imposing the new trade rules that have upended U.S. and global markets in recent days as well as sparked more reciprocal tariffs targeting U.S. exports.
But Woodcock said business leaders want to see more clarity on the Trump administration's long-term economic plan and the purpose of the tariffs. But those specifics have yet to be seen, he said.
"This is the right objective and the right goal to have a renaissance in U.S. manufacturing," Woodcock said. "But it has significant risks in how it is being deployed in such a blunt instrument and across not only those (countries) that have trade barriers but that have been our biggest allies."
