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US eases tariffs on Canadian goods ahead of midterm elections

Published : Saturday, 24 October, 2026 at 8:44 AM

Observer Correspondent

The administration of US President Donald Trump is rolling back 50 per cent tariffs on certain Canadian goods less than two weeks before the US midterm elections.

The announcement came after Republican Senator Susan Collins, who is facing a tight race to retain her Senate seat in Maine, said she had lobbied for the changes.

The White House said on Friday that tariffs on several products, including thin wood panels, certain paper products, specific machinery and refrigeration equipment, would be reduced from October 30.

Collins was the first to announce the tariff relief, saying the decision would support Maine’s agricultural industries.

The United States imposed 50 per cent tariffs on about $20 billion worth of Canadian goods after trade negotiations between the two countries collapsed in August. Canada responded by imposing tariffs on US products in several rounds.

Canadian Prime Minister Mark Carney described the measures as necessary to protect Canadian workers.

After trade talks broke down last month, Carney imposed retaliatory tariffs matching US duties. Trump had initially introduced tariffs, accusing Canada of treating US products unfairly in sectors including automobiles, dairy and alcoholic beverages.

The White House said that while tariffs on some products would be removed, new duties would be imposed on others. Products receiving tariff relief include certain packing crates and boxes, while carpets and some waste products will face tariffs.

The White House said the measures were part of Trump’s ongoing efforts to protect American workers and ensure fair trade.

White House spokesman Matthew Middleton said Trump was continuing to address what he described as Canada’s discriminatory treatment of US trade.

In a statement to the BBC, Canadian Domestic Trade Minister Dominic LeBlanc said the government was reviewing the latest measures.

“Canada stands ready to work constructively and in good faith to build a mutually beneficial trading relationship that respects Canadian interests,” he said.

The announcement comes less than two weeks before the US midterm elections, which will determine whether Republicans retain control of Congress or Democrats take over. The outcome will also influence policymaking during the final two years of Trump’s term.

Collins said she had repeatedly urged senior Trump administration officials to provide tariff relief.

“I will continue to work directly with administration officials to secure additional tariff relief and encourage a broader trade agreement with Canada,” she said, describing Canada as a neighbour, ally and the United States’ largest trading partner.

In a post on X, Collins said the products receiving tariff relief were vital to Maine’s agricultural sector, including its blueberry, potato, apple and seaweed industries.

However, her Democratic rival, Troy Jackson, criticised the decision.

“Trump’s trade war has made life harder and more expensive for people in Maine,” Jackson said, accusing Collins of supporting the policies that had contributed to the economic difficulties before seeking credit for easing their impact.

Maine shares borders with the Canadian provinces of New Brunswick and Quebec. Its economy, like those of other border states, is closely linked to Canada, leaving the region exposed to the effects of months of trade tensions.

Trump said on Friday that Canada was working “very hard” to reach a trade agreement with the United States.

Carney, meanwhile, said Canada was interested in reaching a mutually beneficial deal but was prepared to wait if necessary.

“We could sign a deal this afternoon if the United States were ready,” Carney said on Friday, according to Canadian broadcaster CBC. “If it takes months or longer to get the right deal, even if it means waiting until another administration takes office, we will do that.”

LeBlanc confirmed on Thursday that a Canadian delegation had met members of the advisory committee on Canada-US economic relations. It was the committee’s ninth meeting since April 2026, with discussions focusing on the continuing impact of US tariffs on Canada.

-MT