U.S. to remove 50% tariffs on some Canadian products as trade war becomes ballot box issue

The U.S. is removing the 50 per cent tariffs on certain Canadian products as the trade war with Canada becomes a ballot box issue in key races ahead of November’s midterm election.

Maine Sen. Susan Collins, a Republican, said nine categories of Canadian exports will be exempted from tariffs, including corrugated paper, plastic boxes and several types of machinery important to her state’s agricultural industries.

In a post on X on Friday, Collins said she helped to secure the exemptions.

“I am pleased to have secured additional tariff exemptions products crucial to Maine’s agricultural industries, including blueberry, potato, apple, and seaweed producers,” she wrote.

“In my repeated conversations with Ambassador Greer, Secretary Lutnick, and other senior Administration officials, I have asked for tariff relief for these important products and I will continue working directly with Administration officials to seek additional relief and encourage a broader trade agreement with Canada, our neighbor, ally, and largest trading partner.”

Collins said the tariff exemptions are for products crucial to Maine’s agricultural industries, including blueberry, potato, apple and seaweed producers.

In a fact sheet published Friday, the White House confirmed it is removing certain products — such as plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes — from the scope of the Section 338 tariffs, while replacing those with tariffs on “certain valves, carpets, waste products, and others.”

The fact sheet went on to state that the tariffs apply to all goods regardless if they are covered by the current Canada-U.S.-Mexico (CUSMA) trade agreement.

The White House said the president was seeking to offset “the burden to U.S. commerce while better serving the public interest.”

Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, said in a statement, “Trump’s desperate, 11th hour attempt to save Susan Collins’ political career is an admission that American voters are rejecting his toxic tariff policies.”

The changes take effect Oct. 30, 2026.

Canada’s Trade Minister, Dominic LeBlanc, says they are assessing the latest measures, reiterating that it continues to work towards a mutually beneficial trade deal with the United States.

“The Government of Canada takes note of the latest tariff measures from the United States,” read a statement sent to CityNews. “As always, our focus remains clear: building a stronger, more competitive, and more resilient economy for workers, businesses, farmers and all Canadians. While we assess these latest steps, Canada stands ready to work constructively and in good faith towards a more mutually beneficial trading relationship that respects Canada’s interests.”

The association that represents Canada’s forestry sector says while they are reviewing the full impact of the latest measures, what they really need is “stable, rules-based trade, not constantly changing tariffs.”

“Moving a limited number of forest products off one tariff list while adding even more does not amount to relief. Canadian lumber, furniture, kitchen cabinetry and other wood products remain caught up in a growing web of U.S. duties and tariffs that increase costs for American consumers and create uncertainty for businesses and workers on both sides of the border,” said Derek Nighbor, the President and CEO of the Forest Products Association of Canada.

Back in late August, the U.S. levied 50 per cent tariffs on nearly US$20 billion worth of Canadian goods.

Trump’s trade war with Canada has become a political flashpoint in Collins’ state just ahead of November’s midterm elections.

Trump slammed an array of Canadian products with 50 per cent tariffs in August after trade talks with Ottawa broke down. The president also signed an executive order renaming Lake Ontario as Lake America.

Ottawa responded with retaliatory tariffs on specific American imports.

Trump again escalated trade tensions the following month by banning imports of certain Canadian goods, including motorcycles and some dairy products.

Collins has repeatedly pushed back on Trump’s tariffs on Canada. Maine shares a border with Quebec and New Brunswick and relies heavily on trade with Canada.

Files from The Canadian Press and The Associated Press were used in this report