President Donald Trump will ease 50% tariffs on some Canadian agricultural and forestry-related imports starting October 30, while adding other Canadian goods to the tariff list. The change comes as trade tensions and rising costs affect border-state economies and shape a close Maine Senate race.
The White House on Friday (local time) announced that US President Donald Trump has decided to drop the 50% tariffs on some Canadian agricultural and forestry products. The announcement, however, added that new tariffs have been announced on certain other Canadian products.
Starting on 30 October, tariffs will be eased on products including "plywood sheets, some paper products, certain machinery and refrigeration equipment," the White House said.
Dominic LeBlanc, Canada's minister responsible for trade with the US, said Ottawa was assessing Trump's latest tariff change. "Canada stands ready to work constructively and in good faith towards a more mutually beneficial trading relationship that respects Canada's interests," LeBlanc said in a statement, according to Reuters.
Why it matters for Susan Collins
Republican Senator Susan Collins, who is in a tight race in the upcoming midterms, first made the announcement and claimed that the exemptions would help Maine's agriculture industry. Collins, who is seeking reelection, is locked in a close contest with her Democratic rival Troy Jackson. Latest polls show that Jackson is leading Collins by an average of 2 percentage points.
Trump added a number of Canadian products to the 50% tariff list to offset the tariff relief provided in his order, including carpets, paints, waste, shampoos, cocoa powder, wooden coffins, ice cream sticks, air-conditioning machines, chest freezers, archery equipment and canoes.
Collins said the relief would aid Maine's blueberry, potato, apple and seaweed producers.
"These producers are a vital part of our state's economy and support our rural and coastal communities," Collins said. "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 had earlier complained that Trump’s levies were hurting Maine farms and businesses that rely on Canadian imports when US-made alternatives are not available. Her office cited the example of Maine wild blueberry growers who need specialized harvesting boxes from Canada that work with their processing equipment.
Democratic candidate blames Collins
Jackson, however, insisted that Collins deserves blame for enabling Trump’s tariff policies.
“Trump’s trade wars have made life harder and more expensive for Mainers. Susan Collins enabled this chaos, voted to confirm the people behind it, and now wants credit for bringing a cup of water to put out the fire,” Jackson said in a post on social media.
Trump tariffs are affecting Republican candidates
Trump in August imposed 50% tariffs on $20 billion of Canadian imports, which took effect after talks between the two countries collapsed. Canada retaliated in September with tariffs ranging from 15% to 50% on $20 billion in US goods.
Canada and the United States have been in a standoff over the tariffs since Trump imposed them. Trump asserted on Friday that Canada is working on a deal.
According to Reuters, Republican candidates in northern US border states most affected by the tariffs, including Maine and Michigan, are trying to strike a balance between appealing to Trump's conservative base and winning over independent voters.
The economies of Michigan and Maine have long been intertwined with that of Canada, covering everything from auto parts to lumber to fruit-picking equipment.
Inflation a major concern for voters
While Trump has insisted that foreign countries pay his tariffs, the extra cost is often offset by US importers to end customers, making such products more expensive for them in an economy reeling under high inflation.
Ahead of the midterm elections, a poll by the Associated Press and NORC Center for Public Affairs Research found that many Americans are furious about the cost of living. The poll conducted between September 24 and 28 found that 65% now blame Trump’s policies for persistently high prices more than factors outside of his control, signaling weariness over his aggressive use of tariffs and unhappiness with the war with Iran, which has driven up the price of gasoline.