Senator Collins Questions Secretary of Commerce on Lobster Regulations, Canadian Tariffs
Lobster Industry Q&A: Click HERE to watch and HERE to download
Canadian Tariffs Q&A: Click HERE to watch and HERE to download
Washington, D.C. – At a hearing to review the Fiscal Year 2026 budget request for the U.S. Department of Commerce, U.S. Senator Susan Collins, Chair of the Appropriations Committee, questioned Secretary of Commerce Howard Lutnick on regulations placed on Maine’s lobster industry and the latest on Canadian tariffs.
Q&A on Lobster Regulations:
Senator Collins:
It probably won't surprise you, given the many discussions we've had about the lobster industry, that I'm going to start with my first question on that. Maine's lobster industry, as you know, is so important to the economy of Maine… It's really an iconic industry for us, of hard-working people that sustain many of our coastal communities.
In 2022, the Biden Administration proposed regulations that posed a threat to the very existence of the lobster fishery. If implemented, it would have shut down the lobster industry. The Maine Delegation worked as a team, and we were able to successfully block those regulations and prevent them from going into effect for a period of years.
Subsequently, the Maine Lobstermen's Association sued the National Marine Fisheries Service in the Department of Commerce, and overwhelmingly won the case in June of 2023. And I want to read you just a little bit of what the three-court panel said in its decision. It said that the Service had relied upon worst case modeling that was "very likely wrong" based on assumptions that the Service conceded that it did not believe were accurate… and what the court found was that the Service acted in an arbitrary and capricious way and blocked the regulations from going forward. But obviously, it's costly to go to court and to do that.
So, Mr. Secretary, I know there's a new executive order that attempts to establish much higher standards for scientific research. It emphasizes rigorous evidence-based methodologies to inform federal regulations. Can you talk to us about how you believe that this new approach to regulation based in science will help protect the Maine fishing industry and our lobster industry from arbitrary and capricious regulations, as the court found was done in the previous Administration?
Secretary Lutnick:
This administration views the Maine lobster industry as an American treasure, and we need to protect it. And you will see as we do our trade deals, they treat the Maine lobster industry horribly. And in the UK deal, they said, we will invite you to 10 Downing Street, and we will have, now, a lobster dinner. Okay, so we've opened, for example, the UK to lobster. We think this capricious lack of rigor in our science has got to end. So, the gold standard executive order saying only real science, not opinion-based science, has to be the rule, so we protect our fishermen, we protect our ranchers. These are key things that this Administration is going to drive for. So, I completely agree with you. We will protect the great Maine lobster industry, because it is a treasure for America.
Q&A on Canadian Tariffs:
Senator Collins:
We've also talked about how integrated the Maine economy is with Canada. And Canada's our closest neighbor, our dear friend, and our largest trading partner. And so, I have been very concerned, and I know the Department and you personally are working very hard on this issue about tariffs on Canadian products. Our lobster, our potatoes, our blueberries, are largely processed in Canada, and then come back across the border.
We have a paper mill in northern Maine, in Madawaska, Maine, whose sister mill is right across the river in Canada. The sister mill in Canada produces the pulp that is piped across the river to the paper mill in Madawaska, Maine.
95,000 Mainers are not connected to the New England electric grid. They get their electricity from Canada. I'll just mention these examples, 95% of our refined petroleum products come from Canada; 90% of potash, which is used as the fertilizer for potatoes, comes from Canada… Could you give me a brief update on where we stand with Canadian tariffs?
Secretary Lutnick:
Sure, so, the overriding principle is USMCA [United States-Mexico-Canada Agreement]. So, if the products are actually made in Canada and actually made in the United States, they come back and forth, and it's easy for them to fall under the USMCA, and that has no tariff. Things that are outside of that, where companies chose to be outside of those rules, and those rules, as you know, have been in place quite a long time…
They have the fentanyl tariffs, right? Because we needed to close the border and make sure fentanyl was not coming into the country. And people say, oh, Canada doesn't do much in fentanyl, but if you look at the fentanyl rings in Canada, they're often manned by Mexican cartels…
Senator Collins:
Thank you. If you would provide us with a list of which products are under USMCA that would be very helpful to us. I believe that a lot of the cases that I've mentioned will be under USMCA, and thus, exempt from the tariff.
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In April, Senator Collins delivered remarks on the Senate floor in support of a resolution authored by Senator Tim Kaine (D-VA) that would end the emergency declaration that President Trump signed in February to implement tariffs on Canada. The following week, Senator Collins cosponsored the Trade Review Act of 2025, a bipartisan bill to reaffirm Congress’ constitutional role in setting and approving U.S. trade policy.
In March, Senators Collins and Angus King (I-ME) and Representative Chellie Pingree (D-ME) sent a letter to Secretary Lutnick calling on the Administration to work with Canada to address issues of shared concern and foster economic cooperation in order to avoid the potential for increased prices on groceries, gas and energy.
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