TRUMP EASES TARIFFS ON CANADIAN IMPORTS AHEAD OF US MIDTERM ELECTIONS
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Agency Report
US President Donald Trump’s administration has eased some tariffs on Canadian imports, two weeks before the midterm elections, following lobbying by Republican Senator Susan Collins, who is facing a tough re-election battle.
The White House announced on Friday that the tariff exemptions would cover products including plywood sheets, certain paper products, machinery and refrigeration equipment.
The decision could benefit Collins, who is seeking re-election in Maine, a US state bordering Canada that has been significantly affected by Trump’s trade policies.
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Collins announced on social media that she had secured the exemptions for products vital to Maine’s agricultural sector, including those used by blueberry, potato, apple and seaweed producers.
Democrats are targeting her seat as they seek to gain control of Congress from the Republicans in the November 3 midterm elections.
The economies of the United States and Canada are closely linked, with approximately 70 per cent of Canadian exports destined for the US market.
Relations between the two neighbouring countries have been strained since trade negotiations collapsed in August, prompting Trump to introduce additional tariffs on various Canadian goods.
Although Friday’s decision removed tariffs on some products, it also introduced levies on other items, including carpets, certain valves and waste products. According to the White House, the new measures will take effect on October 30.
Collins said many farmers in Maine depended on specialised equipment, packaging materials and other products from Canada that were either unavailable from American suppliers or too expensive to replace.
Previous US tariffs on automobiles, steel, aluminium and lumber have significantly affected Canada’s economy, contributing to job losses and slowing economic growth. Canada entered a technical recession this year after recording economic contraction for two consecutive quarters.
The additional tariffs introduced by Trump following the breakdown of trade talks affected approximately $20bn worth of goods, representing 5.5 per cent of Canadian exports to the United States. The affected products ranged from hockey sticks to cement.
Since beginning his second term, Trump has reshaped global trade relations by imposing broad tariffs on both allies and rivals, arguing that other countries have taken advantage of the United States.
He has also linked some proposed tariffs to political and foreign policy objectives.
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