Trucks at the entrance to the Ambassador Bridge between Canada and the U.S. (The Bold Bureau/Getty Images)

Political leaders representing states that border Canada and Mexico are sounding the alarm about how cross-border tariffs between those countries and the United States will impact their local economies, and their states’ residents.

While President Donald Trump delayed until April 2 a slate of tariffs against Canada and Mexico, the implications of the levies’ potential long-term implementation is concerning for many state leaders.

Maine Gov. Janet Mills (D) on March 3 stressed that the economies of her state and Canada are “deeply intertwined,” as Maine exported $6 billion in goods over the border last year and received 80% of its heating fuel and gas from Canada.

“When Maine businesses have to pay higher tariffs to import materials they need — building supplies or other things — or pay to export their finished products, they will be forced to pass those costs along to Maine consumers at a time when we can least afford it,” she said. “These tariffs clearly will result in higher prices on everything from fruits and vegetables, flat screen TVs, and auto parts and building supplies. This will cost more than $1,200 annually in purchase power for the typical United States household. I would estimate more for Maine households given our interrelationship with Canada.”

President Donald Trump has advanced tariffs against Canada and Mexico as a means of pressuring the countries to control the flow of drugs across their borders with the U.S., and to even out what he views as a trade imbalance with both countries. A trade imbalance is at the heart of why the White House is also ratcheting up tariffs against China.

In Michigan, Gov. Gretchen Whitmer (D) said U.S. tariffs would jeopardize over 1 million jobs there and hike prices for groceries, home heating oil and automobiles.

In 2024, Michigan exported $61.6 billion of goods, with the lion’s share going to Canada ($23.3 billion) and Mexico ($17.1 billion). But Michigan also trades with China ($2.1 billion) as well as Germany ($1.9 billion) and Japan ($1.5 billion).

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“Because companies pass tariff costs on to the consumers, Trump’s middle-class tax hike will mean Michigan families pay more to heat their homes as they face below-freezing temperatures, fill their gas tanks, and get affordable housing at a time when inflation is already high. It will harm our auto industry, driving up the cost of cars and slowing production lines,” Whitmer said.

In California, Gov. Gavin Newsom said bilateral U.S.-Mexico tariffs would impact his state by driving up costs for construction materials needed to rebuild damage from the Los Angeles wildfires. “Tariffs are nothing more than a tax on hardworking American families — driving up the cost of groceries, cars and essential goods.”

His office forecast retaliatory tariffs will hit the state’s companies since California’s top export consumers are Mexico, Canada and China, “particularly for manufactured goods and agricultural products that employ Californians across the state. Over 40% of California imports come from Mexico, Canada and China. Imports from these countries were $203.3 billion of the total $491.5 billion California imported in 2024,” according to the governor’s office.

While likewise raising concerns about the potential impact on his state, Vermont Gov. Phil Scott (R) is working to understand Trump’s reasoning behind the tariffs.

“I am not a fan of increasing tariffs on our friends and close allies, and most Vermonters agree a trade war with our largest trading partner, which could increase costs on already overburdened working families, seems like a bad idea,” Scott said.

Last year, Vermont exported $645 million in goods to Canada that accounted for 35% of its total exports, according to Office of the United States Trade Representative figures.

In February, Scott created a state interagency team to evaluate “what is rhetoric, and what is real, in terms of impacts to Vermont,” he said. Scott requested regular assessments from the team, which includes the Agency of Commerce and Community Development, Department of Labor, Agency of Agriculture, Food and Markets and Department of Public Service Department.

Lindsay Kurrle, Commerce and Community state secretary, is leading the effort.

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“The governor has asked for a tangible analysis of net impacts, not a knee-jerk reaction to the idea of tariffs or the unfortunate friction trade federal policies create with our very good friends to the north and that is exactly what we’re going to provide,” Kurrle stressed.

Scott said, “We should be fair and take time to understand what problem the president intends to solve, the results he expects to get, and the risks he’s willing to take, before we cast judgment. We need actual data and credible analysis to demonstrate disadvantages we are concerned about.”

U.S. Rep. Becca Balint (D-Vt.) predicted March 4 that families and businesses would “feel the pain” given Canada’s financial importance to the state.

“The harm will ripple throughout our economy, making everything from housing materials and heating bills to groceries more expensive. And Vermonters know we can’t afford to make housing more expensive and less accessible,” Balint said.

Arizona Gov. Katie Hobbs (D) worried that tariffs could stall her state’s economic momentum.

“Arizona’s economy is growing, and we’re working hard to create jobs and lower costs,” she said. “These tariffs are a tax on Arizona families and businesses that threatens to derail our progress. These new taxes threaten to hike grocery and gas prices. They threaten to increase the cost of housing. And they threaten critical Arizona industries that employ tens of thousands of people, including semiconductor manufacturing, agriculture, and the clean energy economy.”