Northeast governors are racing to salvage vital cross-border trade as President Trump’s tariffs threaten billions in commerce between U.S. states and Canadian provinces.

At a Glance

• Six Northeastern U.S. governors invited Canadian premiers to Boston to discuss impacts of Trump administration’s 25% tariff on most Canadian goods
• Canada serves as the top trading partner for states like Massachusetts and Maine, with Massachusetts conducting over $6 billion in cross-border commerce in 2024
• Governors warn tariffs could cost Massachusetts consumers nearly $1 billion in energy costs alone, with a $2.5 billion impact across New England
• The tariffs were imposed under national security provisions, officially aimed at combating fentanyl trafficking and reshoring U.S. manufacturing
• The meeting seeks to maintain regional economic partnerships despite federal trade tensions

Northeastern Leaders Mobilize Against Economic Disruption

Massachusetts Governor Maura Healey has spearheaded an effort to bring together six Northeastern governors and their Canadian counterparts to address the economic fallout from President Trump’s recent tariffs. The invitation was extended by Healey alongside governors from Maine, New York, Connecticut, Rhode Island, and Vermont to premiers from New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Québec for discussions in Boston. The unusual cross-border summit reflects growing alarm about the potential disruption to regional economies heavily dependent on U.S.-Canadian trade.

The White House has implemented a 25% tariff on most Canadian goods under national security provisions, creating immediate concerns about price increases and supply chain disruptions. While the administration has framed the tariffs as necessary to combat fentanyl trafficking and support domestic manufacturing, regional leaders from both sides of the border view the measures as potentially devastating to their integrated economies. The urgent nature of the meeting underscores concerns that waiting for federal solutions could leave border communities facing unnecessary economic harm.

Billions in Cross-Border Commerce at Stake

The economic stakes could hardly be higher for the Northeastern states. Official figures show that Canada ranks as the top trading partner for Massachusetts, with intensive commercial relationships involving energy, lumber, dairy, automobiles, seafood and numerous other sectors. Maine similarly reported over $6 billion in cross-border commerce last year alone. These commercial relationships have developed over generations, creating deeply integrated supply chains that tariffs now threaten to disrupt.

“Canada is Massachusetts’ number one trading partner. For generations, we have enjoyed a strong partnership and a healthy exchange of energy, lumber, dairy, cars and car parts, seafood and more. … But President Trump’s tariffs are undermining this partnership, making it harder for businesses to keep their doors open, and increasing the cost of everything that the New England and Canadian people rely on.”, states Gov. Maura Healey.

Governor Healey has specifically warned that tariffs on Canadian energy could cost Massachusetts consumers nearly $1 billion, with ripple effects potentially reaching $2.5 billion across New England. The automotive, dairy, and lumber industries face particular vulnerabilities due to their reliance on cross-border supply chains. Small businesses operating with thin margins may face existential challenges if forced to absorb or pass along substantial tariff costs to customers already dealing with inflation concerns.

Regional Solutions to Federal Policy Changes

Vermont Governor Phil Scott has emerged as one of the most outspoken critics of the tariff policy, specifically questioning the wisdom of trade restrictions targeting America’s closest allies. Scott’s concerns reflect the practical challenges facing states where Canadian trade has historically provided economic stability and growth opportunities. His direct assessment of the situation reflects frustration shared across political lines in the region about policies perceived as disconnected from border states’ economic realities.

“A trade war with our friends to the north, our largest trading partner, seems like a bad idea.”, said Vermont Gov. Phil Scott.

Maine Governor Janet Mills highlighted both economic and cultural tensions arising from the tariffs, noting that generations of strong relationships are being strained by “haphazard tariffs and harmful rhetoric targeting our northern neighbors.” The upcoming Boston meeting represents an attempt to preserve these longstanding relationships despite federal policies that regional leaders see as potentially harmful to their constituents. Governor Healey’s office has promised to provide further details on the meeting schedule and specific agenda items as arrangements are finalized.