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Tariffs could untangle Maine and Canada’s intertwined forest products industry [Video]

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Canadian Economy and Markets

While experts say some manufacturing could shift back to the U.S., retaliatory tariffs could dry up the Canadian market for Maine timber. But many unknowns remain.

According to the Maine International Trade Center, the state exported $775 million in forest products to Canada in 2023. Belgium was a distant second at $75 million.

Much of the wood Maine sends across the border is in the form of raw logs, according to Dana Doran of Professional Logging Contractors of the Northeast, a trade group.

The timber goes to Canada for processing, where government investment in infrastructure and social programs ultimately leads to lower costs than at American mills, something that could change with tariffs. 

“Canada has done a really good job subsidizing their manufacturers. They provide lower-cost electricity, they have socialized health care, so it’s not a direct cost. That cost is being directly passed to the government,” Doran said.

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