MICHEL MARTIN, HOST:
The escalating U.S.-Canada tariffs are likely to land hardest on border states whose economies are closely intertwined with the U.S. as neighbor to the north. To hear more about this, we have the governor of Maine on the line. That is Janet Mills, and she's a Democrat. Good morning, governor.
JANET MILLS: Good morning. Thank you for having me on.
MARTIN: Well, thanks for coming. So how do these new import taxes affect your state?
MILLS: We have a 611-mile border with Canada. So we are closely integrated in economy, in culture, in everything. And the Canadians are not happy with us, and that's a problem for Maine in itself. They are the largest buyer of American exports. And now the talk is for banning things, not just imposing tariffs or taxes - alcoholic beverages, Canadian Club, Labatt (ph) beer, wine and cheese, clothing. Molasses, for crying out loud. But this disruptive strategy of intimidation and reckless brinkmanship is harming Maine - Maine businesses, Maine families - in a much greater way than for other states.
MARTIN: Our analysts are telling us that Maine is likely to be the hardest hit by these latest tariffs because it...
MILLS: Yes.
MARTIN: ...Makes much of the plywood and agricultural products, which are targeted. So can you give us a sense of how that will affect your state?
MILLS: Well, we're already suffering in respect to building-construction materials, particularly aluminum and steel, with a 50% increase in tariffs last year, plywood and other building material. Agricultural products, including fertilizer - much of the fertilizer comes from Canada, and that's extremely important. You know, we can't just replace these items with locally made items. We are facing a housing crisis in Maine, as well as elsewhere. And products like softwood lumber and plywood are critical to our building housing and satisfying our housing needs, and making housing less expensive for Maine families.
MARTIN: So the president has explained his policy is saying two things. First, he says the countries he's targeted - he's targeted them because their trade policies are unfair to the U.S. But he also says he thinks these tariffs will make manufacturing more attractive in the U.S. and bring those jobs back to the United States. And I'll start with the fairness argument because the vice president, JD Vance, made this argument when he was in Maine last month.
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JD VANCE: They apply ridiculous tariffs and other nontariff duties on Maine products coming into Canada, and they don't expect Maine or anybody else to fight back. We're sick of that. We are actually going to fight back against unfair trade practices, whether it's coming from China or Canada.
MARTIN: Based on your experience, have Canada's trade practices been unfair?
MILLS: No. I mean, honestly, we - the United States has negotiated with Canada for dozens of years and done so with goodwill on both sides. This is not an act of goodwill. This is an act of bullying, and the Canadians are appropriately retaliating. And JD Vance is wrong to say that we were suffering from Canadian tariffs before this. We import 80% of our heating oil and gasoline from Canada. We do food processing and seafood processing and seafood going back and forth between Maine and Canada. Lobsters go back and forth between Maine and Canada routinely for processing and export. A hundred and seventy million dollars of exports from Maine are affected by these tariffs.
MARTIN: Then let's go to the question of stimulating jobs, which is the president's other argument. Have you seen any evidence of that?
MILLS: Certainly not in Maine. Not in Maine at all. We've had a project where 144 jobs were put on layoff for a time right on the Canadian border. And that affected both Canada and Maine because when those jobs go idle, the loggers in Canada who are supplying the mill - they lose out as well. And, you know, I want to - I just want to make clear we share more than a border with Canada. We share families, communities, supply chain, infrastructure. Our whole economy in Maine is intertwined with Canada's.
MARTIN: President Trump has talked about making Canada a U.S. state through quote-unquote economic force. Your Canadian colleagues that you've spoken with - how are they responding to this?
MILLS: They are outraged. Absolutely outraged. When I speak with them, when I travel there, they say, look. We're not mad at you, Governor Mills, but we're mad at your president. And they are protecting their sovereignty. Let's face it. These roller-coaster tariffs, these whipsawing taxes are not increasing jobs in America. They're damaging the goodwill we've had for a long time with our best friend, Canada, and our best trading ally.
MARTIN: That is Maine's governor, Janet Mills. She is a Democrat. Governor Mills, thank you so much for talking with us.
MILLS: Thank you. Transcript provided by NPR, Copyright NPR.
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