U.S. President Donald Trump has said his administration is lifting some of its 50 per cent tariffs imposed on Canadian goods as the country’s midterm elections draw closer.
The White House said on Friday that the tariffs removal would come into effect on October 30 applying to products including “plywood sheets, some paper products, certain machinery and refrigeration equipment.”
The move comes as Mr Trump’s Republican Party scrambles to retain control of the U.S. Congress, with a Republican candidate in a key Senate race, Susan Collins, saying she had lobbied for the removal of tariffs on Canadian products.
“I am pleased to have secured additional tariff exemptions for products crucial to Maine’s agricultural industries, including blueberry, potato, apple, and seaweed producers,” the senator said.
She added, “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.
“In my repeated conversations with Ambassador Greer, Secretary Lutnick, and other senior Administration officials, I have asked for tariff relief for these important products and I will continue working directly with Administration officials to seek additional relief and encourage a broader trade agreement with Canada, our neighbor, ally, and largest trading partner.”
Mr Trump in July imposed a 50 per cent tariff on several Canadian products such as milk, hockey sticks, alcoholic drinks, honey, plywood, jewellery after trade negotiations broke down between the two countries, prompting Prime Minister Mark Carney to impose his own dollar-for-dollar tariffs on the United States in August.
“In recent days, however, the U.S. proposed new terms that were not in Canada’s best interest, basically asking too much of Canada and offering too little in return. Canada did not choose this trade conflict, but we need to respond to provide a level playing field to our businesses,” the Canadian finance ministry said at the time.
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