‘It’s just going to get worse’: Maine-Canada border town businesses already hurting thanks to tariffs on $6 billion trade relationship — as governor warns it will ‘cause havoc' to economy

How tariffs are impacting local Maine businesses

McGary noted that the rising costs will make it harder to stock the usual amount of materials on shelves — and will drive up prices for customers hoping to start new projects or finish repairs.

"Contractors are going to have to raise their prices," McGary said.

"Building the average home is going to cost more."

Building supplies aren’t the only items being impacted by the tariffs.

Mitch Holmes, owner of Aroostook Auto Tech, has already noticed price hikes from last month's proposed tariff increase, from 10% to 25%, on Canadian aluminum. With the new higher tariff rate now in place, he anticipates even higher costs for auto parts in the coming months.

"A lot of the undercarriage, a lot of your suspension components, engine blocks, cylinder heads — I'm seeing bottom-line invoice prices that I've never seen before," Holmes said.

Houlton’s energy comes from New Brunswick Power, and locals are bracing for higher utility bills as a result.

"We just changed over our transmission lines, and everything was going smoothly, but we're going to see those rates go up now,” Jane Torres, director of the Greater Houlton Chamber of Commerce, told News Center Maine.

Owner of Chadwick Florist and Greenhouses Tammy Malvie noted that flower prices have jumped 25%, which could lead to a drop in sales.

"We're anticipating that spring sales will be down significantly," Malvie said.

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How businesses can safeguard against rising costs

“The president's broad tariffs on our major trading partners will increase prices for Maine people and businesses and cause havoc to our economy,” Maine Governor Janet Mills said in a statement on Mar. 6.

Here are 5 steps businesses can take to help shield themselves.

Assess your supply chain

Take a close look at where your products come from — are you heavily reliant on countries like Mexico, Canada or China? Start looking at alternate suppliers.

Know your numbers

High-margin products offer more flexibility with pricing. This could allow you to raise prices less aggressively while keeping a healthy margin — even if it's smaller than before the tariffs.

Build up inventory

If your products rely on imports that will be hit by tariffs, consider stocking up now before prices rise. Assess your inventory turnover and comfort with debt before making a decision.

Trim expenses

Can you extend the life of your current equipment? Do you need to buy new fixtures or hire more staff right now? As labor costs continue to rise, cutting unnecessary expenses will help maintain your bottom line.

Talk to your customers

If you need to raise prices, be transparent with your customers about why. Remind them of the value, quality or uniqueness of your products to justify the increase, and thank them for their ongoing loyalty.

Many business owners, like Malvie, are concerned about the relationships with their long-standing Canadian customers, so maintaining transparency is key.

"That border patrol line,” Malvie says, “doesn't stop them from being our family and friends.”