Ahead of midterms, Trump administration lifts tariffs on some Canadian goods, adds others

Just about two weeks before the November 3 midterm elections, President Donald Trump's administration has decided to withdraw tariffs imposed on certain products imported from Canada, news agency AFP reported.

A formal White House statement said the exemption list includes plywood sheets, some special paper products, refrigeration equipment and specific machinery. The step was taken mainly after efforts by Republican Senator Susan Collins, who faces a fiercely competitive race in the border state of Maine.

Not all products are getting relief, however. While some items were exempted, new tariffs were also announced on carpets, certain types of valves and waste materials, set to take effect from October 30.

Democrats, desperate to regain control of the US Congress, have made Maine's Senate seat a special target. Meanwhile, the adverse effects of Trump's trade conflict had badly damaged the economy of the border state, complicating the electoral calculation further.

Collins said on social media that she had secured the tariff relief for products essential to Maine's farm industry, such as inputs used in growing blueberries, potatoes, apples and seaweed. She noted that local farmers depend on Canada for specialised machinery and packaging materials that are not readily available in the United States, or whose alternatives are extremely expensive.

About 70 percent of Canada's total exports go to the United States. But since bilateral trade talks broke down last August, Trump had taken one step after another against Ottawa, affecting products worth about $20 billion, from hockey sticks to cement.

Earlier US tariffs on automobiles, steel, aluminium and lumber had hindered employment in Canada, and with the economy shrinking for two consecutive quarters the country fell into a technical recession. Against that backdrop, observers see this partial relief as a limited softening in the two countries' trade relations.

Reacting to the latest US move, Canada's trade minister Dominic LeBlanc told AFP in a statement that Ottawa was aware of Washington's decision. He said Canada was ready to review these steps and to work constructively and sincerely with the United States.

Since returning to power for a second term, Trump has argued that other countries have long taken advantage of the United States in global trade. On that argument he imposed sweeping tariffs on friends and rivals alike, bringing major changes to the international trading system.

Analysts are also linking this decision, taken just before the election, to vote politics. In a border state like Maine, higher prices for Canadian goods directly affect farmers and businesses, and that anger could put a competing candidate's seat at risk.

Attention now turns to whether stalled trade talks between the two countries resume after this partial relief. With new tariffs also due to take effect from October 30, relief and fresh pressure appear set to run side by side.