Heating oil prices are going up for Maine customers after President Donald Trump announced tariffs on Canada, China and Mexico over the weekend.
Irving Oil sent a notice to customers Sunday saying that the cost of the tariffs would be added onto the cost for contracts with fixed prices, cap protections and equalized payments. At the end of the contracts, the cost will be determined by the market price on the delivery date.
In a Sunday statement, Irving said that the majority of the product from its refinery in Saint John, New Brunswick, is exported to the United States.
“This tariff will result in price increases for our U.S. customers and have impacts on energy security and the broader economy. Given the importance of safeguarding the energy supply chain, we urge all stakeholders within government and industry to come together and work toward a resolution as soon as possible,” Irving said.
It’s just the first glimpse at the potential impacts here from Trump’s new tariffs.
On Saturday, Trump signed an order imposing a 10 percent tariff on Chinese imports and 25 percent on goods coming from Canada and Mexico. Canadian energy products are subject to a 10 percent tariff, The Associated Press reported.
That fulfilled a central pillar of Trump’s reelection campaign, and he said Saturday these tariffs will “protect Americans” by pressuring the three nations to curb fentanyl trafficking and illegal immigration.
Already Canada and Mexico have vowed to retaliate with tariffs on U.S. goods. On Sunday, Trump suggested Americans could feel “some pain” from his tariffs. On Monday, Trump agreed to pause tariffs on good from Mexico for a month while leaving them in place for Canada and China.
Maine is poised to feel more of that pain than other states. About 70 percent of imports come from Canada, including virtually all heating oil, and 30 percent of the state’s exports are destined to the north.
The news of rising heating oil prices will likely be broadly felt here. Maine is more reliant on heating oil than any other state, with about 70 percent of homes dependent on it, compared with 4 percent nationally, according to the Governor’s Energy Office.
U.S. Susan Collins and Gov. Janet Mills warned that the tariffs could pose a burden for Mainers.
