Senator Collins Urges USTR to Support Maine Industries Harmed by Tariffs

Washington, D.C. - At a Senate Appropriations Subcommittee hearing yesterday, U.S. Senator Susan Collins, Chair of the Appropriations Committee, urged United States Trade Representative (USTR) Jamieson Greer to address the hardship that tariffs have imposed on Maine industries and businesses.

Q&A on Steel and Aluminum Tariffs:

Senator Collins:

Maine and Canada's economies are so intertwined . For example, Maine potatoes, blueberries, lobster, and lumber are produced in Maine, but then often shipped across the border for processing and then come back over. Under the USMCA, fortunately, a lot of those products are exempt, including the pulp that is produced in a Canadian mill that is literally across the river from a paper mill in Madawaska, Maine, and that mill supports more than 500 direct jobs…

I know that the agreement is under review, and I will just express my hope that you will keep in mind how important the exemptions are to the functioning of many of Maine's most important industries.

I do want to ask you, though, specifically about the steel and aluminum Section 232 tariffs. The 50% tariff imposed on imported steel and aluminum is affecting two of Maine's most iconic industries: the lobster industry and the blueberries industry.

I recently wrote to you and Secretary Lutnick, highlighting the need for relief for both of these important sectors . For the lobster industry, the tariff has increased costs for essential equipment like traps. The blueberry industry, which has had a terrible year, including an overly rainy spring and then a drought during the summer season, is now forced to pay increased costs on critical harvesting and mowing equipment. Earlier this year, the Commerce Department terminated the exclusions process for Section 232 steel and aluminum tariffs, and that was a potential path for relief for these two critical sectors in our economy.

Could you talk about whether you are revisiting the specific hardships that are imposed by these 50% tariffs. For example, the sharp knives that are used for certain mowing equipment for blueberries are available only in Canada. It's not as if there is a distributor in Maine or other places that can fill the need for blueberry growers.Is reopening the exclusions process under consideration?

Ambassador Greer:

Thank you, Senator, and I also appreciate the conversations we've had in recent months and I'm always, you know, glad to hear feedback on the President's programs. Section 232, as you know, is a Commerce Department program, so I don't control how that's operated. However, I'm happy to raise that with Secretary Lutnick. We regularly hear from domestic producers who are having a large benefit from the program, but we also hear at times, folks will come and discuss the effects of the steel and aluminum tariffs on things they're trying to get. I know that the derivatives program is something where folks are trying to understand how that operates, so I'm happy to go to the Secretary and relay your views to him.

Q&A on L.L.Bean :

Senator Collins:

… In October, USTR announced a trade framework with Vietnam, which maintained, as I understand it, a 20% reciprocal tariff for imports from Vietnam, and also sought to identify certain products receive a zero rate. Reaching a fair and balanced trade deal with Vietnam is especially important for Maine businesses like L.L.Bean, an historic family-owned company in Maine that maintains some manufacturing operations in Vietnam. L.L.Bean moved out of China and moved a lot of its operations to Vietnam and would not have anticipated that Vietnam would be the subject of such a high tariff.

Has the Administration, and your office in particular, identified a list of products that will receive the zero-product tariff rate, or a process for determining which kinds of products will receive that more favorable treatment?

Ambassador Greer:

Thank you, Senator. So, as a baseline, in early September, the President identified a list of products that cannot be grown or physically obtained in the United States because they aren't geologically present or climatologically can't be grown here. He identified those in September as the types of goods where he would provide a 0% reciprocal tariff rate to countries once they conclude their agreements. So, that list that came out in November, you know, captures the general universe of what might be there. And this is really agricultural products that can't be grown in the U.S., or minerals and ores, that just aren't present in the United States. So, that's where we are right now with that. You know, the deal with Vietnam, the final details are still being finalized. You know, I'm happy to have another conversation with L.L.Bean, you know, regarding their concerns, but that's where we are right now.

This week, Senator Collins wrote to Department of Commerce Secretary Howard Lutnick and USTR Greer requesting that the Commerce Department provide targeted relief from the tariff imposed on steel and aluminum for the wild blueberry industry in Maine. In November, Senator Collins wrote to U.S. Department of Agriculture (USDA) Secretary Brooke Rollins urging the Department to provide disaster assistance to Maine's specialty crop and livestock producers.

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