US lifts tariffs on some Canadian goods as Maine Senate race looms

The United States is lifting some of its 50% tariffs on Canadian goods. On Friday, the White House said it was working to 'protect the economic prosperity and national security of the American people'.

The exemptions were first announced by Republican Senator Susan Collins, who is in a tight race to keep her Maine seat in the 3 November midterm elections.

After trade talks collapsed this summer, the US and Canada entered an escalating tariff war that has affected both sides of the border.

The White House said that starting 30 October it would remove certain products from the list of Canadian goods it taxes, such as plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes.

It added that those items would be replaced with certain valves, carpets, waste products, among others.

The BBC has contacted the White House, the US commerce department and the trade representative for further comment.

Before the White House announcement, Collins said in a statement posted on X that she had 'secured additional tariff exemptions' for products crucial to Maine's agricultural industries, including blueberry, potato, apple and seaweed producers.

'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,' she wrote.

Collins said she had asked for tariff relief for these products in repeated conversations with Ambassador Greer, Secretary Lutnick and other senior administration officials, and would continue working toward a broader trade agreement with Canada.

Collins has served in the Senate for nearly 30 years and is seeking a sixth term against Democrat Troy Jackson. The seat is crucial to Democratic hopes of flipping control of the chamber, and the race is considered a toss-up.

Maine's economy is deeply linked to Canada; industries rooted in the state's history — logging, lobstering and fishing — were expected to take a hit after this year's tariff announcements.

After Trump imposed a 50% tariff on certain Canadian goods from 22 August, Canada announced retaliatory tariffs ranging from 15% to 50% on $20bn worth of American goods. Canada later withdrew its tariffs on American seafood, which helped Maine's fisheries.

The Wall Street Journal reported that the exemptions, largely focused on Canadian agricultural and forestry sectors, were made to help Collins and other Republicans in the upcoming midterm elections.

The reductions could be offset by raising levies on other Canadian goods, the Journal reported.

The same day, President Donald Trump said Canada is 'working very hard' on a trade deal with the US. Canadian Prime Minister Mark Carney said Canada is open to a mutually beneficial deal but is willing to wait it out.

Altogether, this exemption marks a notable turn in the Canada-US tariff war — one that could matter not just for trade but for November's midterms.