Arab News | Trump lifts some Canada tariffs ahead of midterms

WASHINGTON, United States: President Donald Trump’s administration lifted some tariffs on Canadian imports Friday, two weeks ahead of midterm elections, after a vulnerable Republican candidate said she’d lobbied for the change.

The easing of tariffs will apply to products including “plywood sheets, some paper products, certain machinery and refrigeration equipment,” the White House said in a statement.

The change could help Senator Susan Collins, who faces a strong challenge from a Democrat in the US-Canada border state of Maine, which has been hit hard by Trump’s trade war.

She posted on social media that she had “secured” the exemptions for “products crucial to Maine’s agricultural industries, including blueberry, potato, apple, and seaweed producers.”

Democrats are targeting Collins’s seat in their attempt to win control of Congress from the Republicans in the November 3 midterms.

US-CANADA TRADE

The economies of the United States and Canada are heavily inter-connected, with roughly 70 percent of all Canadian exports heading to the United States.

Tensions between the North American neighbors have been high since trade talks broke down in August, with Trump imposing a slew of new tariffs in response.

Friday’s action lifts tariffs on certain goods, but imposes levies on new ones, including carpets, certain valves and waste products, the White House said. The new measures will take effect on October 30.

“The Canadian government takes note of these recent tariff measures adopted by the United States,” Dominic LeBlanc, Ottawa’s minister in charge of US-Canada trade, said in a statement to AFP.

“While evaluating these recent measures, Canada remains ready to work together in a constructive and good-faith manner” with the US, he added.

Collins said many farmers in her state “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.”

Previous Trump levies on autos, steel, aluminum and lumber have hit Canada hard, forcing job losses and stunting growth. Canada has entered a technical recession this year after two consecutive quarters of economic contraction.

Trump’s tariffs enforced after the talks broke down impacted around $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States, targeting products ranging from hockey sticks to cement.

Since taking power in his second term, Trump has upended the global trade order by imposing wide-ranging tariffs on friend and foe alike, saying that other countries have been taking advantage of the United States.

He has also explicitly tied some threatened tariffs to political or foreign policy objectives.