White House Rolls Back Some 50% Canada Tariffs Days Before Midterms
Starting 30 October, the US removes plywood, paper and machinery from its 50% Canada tariff list — four days before midterms. New items take their place.
By Olivia Hart
3 min read
What's News
- Tariff exemptions take effect 30 October, four days before the 3 November midterms.
- Exempted goods include plywood, some paper products, machinery, refrigeration equipment and packing crates.
- Certain valves, carpets and waste products will be added to the tariff list in their place.
- The US and Canada entered a tariff war after trade talks collapsed this summer.
- Carney said Canada would wait 'months from now or longer' for a proper deal.
The White House said on Friday it will lift 50% tariffs on a slice of Canadian goods effective 30 October — four days before the US midterm elections on 3 November. The timing is doing as much work as the policy itself.
The exempted products include plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes, according to a White House statement. The relief, however, is not a net loosening: those items will be replaced on the tariff list by certain valves, carpets and waste products, among others. The Wall Street Journal reported that the reductions could be offset by raising levies on other Canadian goods.
The White House framed the move as an effort to "protect the economic prosperity and national security of the American people." That sentence says nothing about who actually asked for it.
Who benefits first?
Republican Senator Susan Collins of Maine announced the exemptions before the White House did. Collins, running for her sixth term in a tight race, said she had "secured additional tariff exemptions products crucial to Maine's agricultural industries, including blueberry, potato, apple, and seaweed producers."
She was more concrete about the economics on X: "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."
Collins said she has asked US officials and senior administration officials to seek additional relief and a broader trade agreement with Canada. In plain words: the exemptions cover a list of inputs, not a deal — and the senator herself is asking for more.
What does the timing signal?
The Wall Street Journal reported that the exemptions, largely focused on Canadian agriculture and forestry, were designed to help Collins and other Republicans in the midterms. Many US voters rank affordability and economic pressure as top issues, which makes tariff relief a visible, pocketbook-friendly message weeks before voting day.
The backdrop is a trade war that began when US-Canada talks collapsed this summer. Both sides of the border have absorbed the costs since. Maine and other border states, whose economies are deeply linked to Canada, have felt the effects of the standoff most directly.
Michigan Republican lawmaker Mike Rogers, who spent months supporting the tariff policy in advertisements airing in his trade-reliant state, has now called on President Donald Trump to end the standoff. The BBC has contacted the White House, the US commerce department and the trade representative for further comment; no answers are yet on record.
Is a deal actually close?
Trump said on Friday that Canada is "working very hard" on a trade deal with the US. Canadian Prime Minister Mark Carney offered a different account of the pace.
"We could sign it this afternoon if the US were there. If it has to be months from now or longer than that, or another administration, before a proper deal comes into place, we will do that," Carney said, according to CBC. Canada, in his telling, is open to a mutually beneficial agreement but prepared to wait.
The gap between the two statements is the story: Washington signals momentum, Ottawa signals patience. Takeaway: a partial tariff carve-out weeks before an election is not a trade deal, and the swapped-in product list suggests the overall tariff wall stays standing.
Source: BBC Business
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Staff writer covering people, launches and day-to-day practice in entrepreneurship, startups and venture funding at Business Bearings.
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