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US Lifts Some Tariffs on Canadian Goods Ahead of Midterms
· Confirmed
In Short: The Straits Times (Singapore) reported that President Donald Trump lifted some tariffs on Canadian imports on Oct. 23, two weeks ahead of midterm elections, after a vulnerable Republican candidate said she’d lobbied for the change.
Maine Republican Sen. Susan Collins said on Friday that the Trump administration will scrap tariffs on some paper and plastic products, refrigeration and packaging equipment, agricultural machinery, and seaweed and algae products, among others, after she relayed how damaging these levies have been for consumers and businesses in her state, according to CBC (Canada).
The White House said it would levy new Section 338 tariffs on products with certain valves, carpets, and waste products, as well as shampoos, cocoa powder products, window air-conditioning units, archery equipment, and canoes less than 7.5 meters long, among others, to continue addressing Canada’s discriminatory treatment of U.S. commerce, CBC (Canada) reported.
The six-page list of new Canadian products facing the 50 per cent tariff includes items that were hit with a 50 per cent tariff in August, apparently retaliating for Canada's countermeasures on some U.S. goods, CBC (Canada) reported.
Both CBC (Canada) and The Straits Times (Singapore) agreed that the White House is removing some Canadian products that are subject to 50 percent U.S. tariffs, and adding other products to the list.
The White House said the changes would “ensure these measures continue to effectively offset the burden or disadvantage to U.S. commerce from Canada’s discriminatory measures,” an echo of the president’s longstanding claims that Ottawa’s own trade policies unfairly harm U.S. businesses, CBC (Canada) noted.
Collins said she will continue working directly with administration officials to seek additional relief and encourage a broader trade agreement with Canada, her social media statement announcing the changes indicated.
The cuts are part of an effort by President Donald Trump to help Maine Sen. Susan Collins, who is running for reelection, as well as other Republicans, in the midterms, the Wall Street Journal reported, citing unnamed sources.
The White House said any tariff announcements come directly from the administration, and any reports ahead of announcements are entirely speculation, a White House official stated.
The White House's actions reflect a political strategy to address trade issues that have become a ballot box issue in key races ahead of November's midterm election, according to CBC (Canada).
Both CBC (Canada) and The Straits Times (Singapore) agreed that the White House is making changes to tariffs on Canadian goods ahead of the midterms, but they differ on the extent and specific products affected.
The White House's actions are aimed at addressing trade issues that have become a political liability for Republicans in border states, according to CBC (Canada).
The White House's actions reflect a broader strategy to address trade issues that have become a political issue ahead of the midterms, according to The Straits Times (Singapore).
What's confirmed
- "I will continue working directly with administration officials to seek additional relief and encourage a broader trade agreement with Canada, our neighbour, ally and largest trading partner," Collins said in a social media statement announcing the changes.
What's still developing
- She said, for example, Maine's blueberry growers rely on Canadian-made specialized harvesting boxes that work with existing processing equipment.
- Plus, a U.S. supplier of cardboard totes widely used in the agricultural sector recently stopped making that particular product, "leaving producers with no choice but to turn to Canada," she said.
- At a Friday rally in Fort Myers, Fla., one of several deep-red states where he is trying to shore up the Republican vote, Trump said "tariffs" is still his "favourite word" because they've "made us rich."
- Another border state Republican Senate candidate, Michigan's Mike Rogers, has publicly called for an end to the trade war with Canada, saying the tariffs have raised prices at a time when inflation is already high.
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