With only two weeks before the US midterm elections, the Trump administration is removing some 50% tariffs on Canadian goods following advocacy from a Republican Senator locked in a crucial re-election race.
The White House announced on Friday that tariff exemptions for products including plywood sheets, select paper products, certain machinery, and refrigeration equipment will take effect on October 30.
Republican Senator Susan Collins of Maine first disclosed the exemptions, claiming credit for lobbying the administration to relieve the state’s agricultural sector.
The US had originally levied a 50% tariff on $20 billion (£15 billion) worth of Canadian exports after trade negotiations between the two nations broke down in August.
Responding to the US tariffs, Canadian Prime Minister Mark Carney stated that Canada’s retaliatory measures were essential to safeguard its workforce.
Carney matched the US tariffs “dollar for dollar” last month following the breakdown of bilateral talks. Trump had imposed the initial tariffs after citing unequal treatment of American dairy, alcohol, and automobile exports.
According to the White House, the government will levy new taxes on carpets and waste goods while simultaneously removing duties on select items, including specified packing crates and boxes.
It said the action reflected US President Donald Trump’s “continued efforts to defend American workers and ensure fair trade”.
Backstory…
Amid escalating US-Canada trade war, the White House announced in September said that the US will ban Canadian dairy products, most alcoholic beverages and motorcycles.
The ban will took effect in three weeks, following Canada’s retaliatory tariffs on $20 billion worth of US goods earlier on Tuesday.
As Canada imposed the retaliatory tariffs, Prime Minister Mark Carney pledged to accelerate efforts to reduce the country’s reliance on the United States. Trump also began moves to exclude Canadian goods from major long-term US  government contracts.
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