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Tariff war: New Brunswick premier says cutting power to Maine still an option

FREDERICTON — New Brunswick Premier Susan Holt says it's unlikely the province will cut off the electricity NB Power supplies to northern Maine as the trade war with the United States drags on, but she says that could change.
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New Brunswick Premier Susan Holt speaks to reporters at the Mayflower Hotel in Washington, Wednesday, Feb. 12, 2025. Holt says it's highly unlikely the province will cut off the electricity NB Power supplies to northern Maine as the trade war with the United States drags on, but she made it clear that could change. THE CANADIAN PRESS/AP-Ben Curtis

FREDERICTON — New Brunswick Premier Susan Holt says it's unlikely the province will cut off the electricity NB Power supplies to northern Maine as the trade war with the United States drags on, but she says that could change.

Holt made the comment Thursday during the first of what will be weekly briefings aimed at keeping New Brunswickers informed about the province's response to the economic and emotional fallout from the tariffs imposed by U.S. President Donald Trump.

The premier spent much of the hour-long news conference reassuring residents, telling them it is normal to feel scared, angry and frustrated during a time of "consistent uncertainty."

"It makes me angry that somebody is threatening the very existence of our province, threatening to annex Canada — that we become the 51st state," she said. "It makes sense to feel angry and to want to lash out and to hit them back, hit them where it hurts."

Holt said she wanted to validate those feelings before offering an explanation of what her Liberal government is doing to mitigate the economic damage and persuade Trump to change course. Those steps, she said, have included removing American alcohol from government outlets and halting government procurement of U.S goods and services.

"We know that's bothering the Americans. They're frustrated."

The premier also provided some details about a plan announced last week to roll out government support for struggling businesses and their employees.

Trump on Wednesday slapped 25 per cent tariffs on all steel and aluminum imports to the United States, including those from Canada. The week prior, the president started — then partially paused — a trade war with Canada and Mexico. He has said that more tariffs are coming in April.

As for cutting off power to northern Maine, Holt said the province doesn't want to go there, but she said it doesn't make sense to limit the government's options.

"We're not looking to put people's lives at risk, but the livelihoods of New Brunswickers has been put at risk by a president that has threatened economic measures that will impact jobs and people's income here in New Brunswick," Holt said. "So we have to consider all of our options — and we have to do that with cool heads."

Pressed to elaborate on the government's position, the premier suggested she would take her time and be careful about employing such a drastic measure.

"It's not something we want to do," she said. "And I would suggest it's not advisable to do. The repercussions of a decision like that would be … negative and harm New Brunswickers. Does it mean that we will never ever do it? Those are hypotheticals. It doesn't make sense to tie our hands for forever."

When asked if she had considered imposing surcharges on electricity sent south of the border — a move threatened by Ontario Premier Doug Ford — Holt said surcharges were possible under some of Maine's electricity contracts. But the premier said she was worried about a backlash because New Brunswick buys electricity from Maine during times of peak demand.

"They could take the same tack and add a surcharge," she said. "It would end up costing us money and hurting us in the long run."

As well, she said the customers in Maine of New Brunswick's power utility could eventually buy electricity from other parts of the U.S., even though that switch could take a long time because the northern part of the state is not directly connected to the rest of the American electricity grid.

"I'm not certain that adding a surcharge to what the folks in Maine (use) is going to yield a result from the White House, and instead will cause damage to a relationship that we want to protect in the long run," she said.

The premier also talked about the need to lower domestic electricity rates, saying NB Power's heavy debt load was making it difficult for the Crown utility to keep its costs down. She said the government's recent move to lower rates by 10 per cent was not enough to help those struggling with the cost of living.

Rising property rates were also getting New Brunswickers down, she said, adding that the province has a toll-free mental health helpline that people can call if they're feeling overwhelmed.

On another front, Holt said the province is also trying to diversify its economy and find new markets for its products. And she stressed that New Brunswick is keen to develop its critical minerals industry, a strategy recently adopted by neighbouring Nova Scotia.

This report by The Canadian Press was first published March 13, 2025.

— By Michael MacDonald in Halifax

The Canadian Press

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