Plywood, paper and fridges: Trump lifts some Canada tariffs two weeks before US midterms

President Donald Trump's administration reduced certain tariffs on Canadian imports on Friday, ahead of the upcoming US midterm elections, following a request from Republican Senator Susan Collins. The White House announced that the tariff exemptions will apply to items such as plywood, paper products, machinery, and refrigeration equipment.

This move benefits Collins, who faces a tough Democratic challenger in Maine, a state bordering Canada that has suffered due to Trump's trade war. Collins claimed to have "secured" the exemptions for "products crucial to Maine's agricultural industries, including blueberry, potato, apple, and seaweed producers." The economies of the United States and Canada are highly interconnected, with approximately 70% of Canada's exports going to the United States.

Trade tensions have escalated since August when talks broke down, leading Trump to impose numerous new tariffs. The new measures will be in effect from October 30, imposing duties on additional items like carpets, valves, and waste products. Canada's trade minister, Dominic LeBlanc, acknowledged the recent tariff changes but emphasized that Canada remains open to working constructively with the United States.

The tariff reductions come after previous Trump levies on automobiles, steel, aluminum, and lumber have adversely affected Canada, resulting in job losses and economic slowdown. Canada is currently experiencing a technical recession, with two consecutive quarters of economic decline. Trump's trade policies have imposed around US$20 billion worth of tariffs on Canadian goods, representing 5.5% of Canadian exports to the United States.