Trump Trims Some Canada Tariffs Days Before Midterms, Adds New Ones

Trump Trims Some Canada Tariffs Days Before Midterms, Adds New Ones

Exemptions Take Effect October 30

The White House announced on October 23 that it would reshuffle the list of Canadian goods subject to 50% tariffs imposed under Section 338 of the Tariff Act of 1930. Starting October 30, plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes come off the list. In their place go certain valves, carpets, waste products and other goods. The changes land four days before voters go to the polls on November 3.

Collins Claims Win for Maine Farmers

Republican Senator Susan Collins of Maine announced the exemptions first, saying she had secured relief for nine categories of Canadian products "crucial for Maine's agricultural industries," including paperboard cartons, plastic boxes, refrigeration equipment, agricultural cleaning and sorting machinery, packing machinery, and seaweed and algae products. She said many of the state's farmers rely on specialized equipment and materials from across the border that are "unavailable from American suppliers or cannot be replaced without incurring significant expense." The relief is aimed at blueberry, potato, apple and seaweed producers.

A Tight Senate Race Frames the Move

Collins is locked in a close re-election fight against Democrat Troy Jackson, a race that could help decide control of Congress. She has criticized the trade war while stressing back-channel work, telling a debate audience earlier this month: "Canada is not China. It is our neighbor, our friend, our closest ally and our biggest trading partner." She previously won exemptions for road salt and pulp. The Wall Street Journal reported the exemptions, largely focused on Canadian agricultural and forestry goods, were designed to help Collins and other Republicans, with affordability ranking as a top voter concern.

White House Cites Fair Trade and Retaliation

The White House said the action reflected President Trump's "continued efforts to defend American workers and ensure fair trade" and would "protect the economic prosperity and national security of the American people." A spokesman said it answered "Canada's continued discrimination against and additional retaliation targeting U.S. commerce." According to BNN Bloomberg, products leaving the tariff list include seaweed, packing boxes and some plywood sheets, while cocoa powder, vinyl flooring, shampoos, paints and varnishes join it.

A Summer Escalation Worth 20 Billion Dollars

Tensions peaked after talks broke down in August. Trump then imposed 50% duties on about $20 billion worth of Canadian products, or 5.5% of Canadian exports to the United States, ranging from hockey sticks to cement. Prime Minister Mark Carney announced retaliatory tariffs, called U.S. demands "unfair" and "uneconomic," and pledged to match American tariffs dollar-for-dollar. Trump has said of Canada: "there's nothing they have that we need."

Narrow Relief, New Burdens

For Canadian exporters the change is narrow. Plywood and paper makers and equipment suppliers named in the order get relief from October 30, while sellers of valves, carpets and waste products face new duties. Carney, visiting Istanbul where he signed a strategic partnership with Turkey, has set no timeline for resuming formal talks, and Trump said Canada is "working very hard to make a deal."

Ballots First, Negotiations Later

The midterms will determine whether Trump's Republican Party or the Democrats control Congress, shaping the remaining two years of his term. Whether tariff relief eases price pressures enough to move voters will be tested on November 3. When Ottawa and Washington return to the table remains unanswered.