President Donald Trump has signed an order lifting 50% tariffs on some Canadian goods, eleven days before Americans vote in the midterm elections.
The White House presented the changes as a step taken to better serve the public interest. In practice, the order gives with one hand and takes with the other, easing some duties while adding new ones elsewhere.
The White House said the exemptions cover plywood sheets, some paper products, certain machinery and refrigeration equipment, and packing crates and boxes. Fresh and dried seaweed is also on the list.
The changes take effect on 30 October, four days before election day.
Relief aimed at Maine
The move follows direct lobbying by Susan Collins, the Republican senator for Maine, who faces a tough re-election fight in a state that borders Canada.
Collins said she had “secured” the exemptions for products that matter to Maine’s farm businesses. She pointed in particular to the state’s blueberry, potato, apple and seaweed producers, calling them “a vital part of our state’s economy”.
“Many of our farmers and growers rely on specialized equipment, packaging materials and other products from Canada that are either unavailable from American suppliers or cannot be replaced without incurring significant expense,” she said.
Maine’s economy is tied closely to Canada’s. Farms and food producers there buy machinery, packaging and materials from across the border, and the tariffs had pushed up their costs. Collins argues the exemptions will help the state’s rural and coastal economy, where small producers have little room to absorb higher prices.
Nor is Maine the only state exposed. The tariffs on Canada have caused problems for American businesses in other states that depend on Canadian goods, one reason the policy has drawn criticism inside the US as well as in Canada.
Collins is being challenged by Democrat Troy Jackson in a race that polls indicate is very close. The two sparred over tariffs at a debate on 6 October, and Democrats see her seat as one they can win in their push to take control of Congress from the Republicans.
Some goods in, others out
Friday’s order did not simply cut tariffs. To offset the relief, Trump added a number of other Canadian products to the 50% tariff list.
The new list includes carpets, paints, shampoos, cocoa powder, wooden coffins, ice cream sticks, air-conditioning machines, chest freezers, archery equipment and canoes.
For Canadian exporters, the mixed list means relief for some industries and new costs for others, with both sets of changes starting on the same day, 30 October.
Canada’s trade minister, Dominic LeBlanc, said Ottawa “takes note” of the measures. He said Canada remains ready to work with the US in a “constructive and good-faith manner”. The reaction in Ottawa was calm, treating the announcement as something to note rather than a deal done.
Why it matters
The US and Canadian economies are deeply linked. Roughly 70% of everything Canada sells abroad goes to the United States, so tariff changes in Washington are felt quickly on both sides of the border.
Relations between the two neighbours have been tense since trade talks broke down in August, when Trump imposed a fresh round of tariffs. Earlier duties on autos, steel, aluminium and lumber have already cost Canadian jobs and slowed growth, and Canada’s economy has shrunk for two quarters in a row, a technical recession.
For voters in Maine, though, the timing is the story. Tariff relief that arrives four days before an election is also a campaign message, and both parties will treat it that way.
