New 50% tariffs on targeted Canadian goods went into effect this weekend, and Maine’s economy is already bracing for the impact.

The targeted import taxes hit finished paper products, chemical wood pulp, machinery, and industrial supplies.

While major imports like energy and seafood are exempt, the tariffs hit at the core of Maine’s forest products industry. Local paper mills and timber processors rely on tightly integrated Canadian supply chains, and business leaders warn that rising operational costs could disrupt regional trade partnerships.

Commercial lobstermen and equipment suppliers are also facing higher prices on imported gear.

State economists say beyond direct costs, the growing cross-border trade friction threatens tourism and decades of established economic ties between Maine and Canada, with Canadian Prime Minister Mark Carney already saying that the country will initiate retaliatory tariffs against American imports early next month.