The Trump administration will ease its 50% tariffs on some Canadian goods, including plywood, paper products and machinery, from 30 October, the White House said on Friday, while adding new tariffs on carpets.
The partial reversal, in which the US lifts tariffs on Canada for a limited set of products, comes less than two weeks before the US midterm elections, BBC News reported. Republican Senator Susan Collins, who is in a tight race to keep her seat in Maine, said she had lobbied for the change.
The move does not end the trade war between the two neighbors. It narrows it in some places and widens it in others. Canada said it is still assessing the steps.
Which Canadian goods are exempt, and when does the change take effect?
From 30 October, tariffs will be eased on products including "plywood sheets, some paper products, certain machinery and refrigeration equipment", the White House said. Some packing crates and boxes are also among the items losing the levy.
At the same time, the White House said tariffs would be introduced on other items, such as carpets and "waste products". The full lists of exempted and newly tariffed goods were not detailed in the BBC's reporting.
The White House said the action reflected President Donald Trump's "continued efforts to defend American workers and ensure fair trade". White House spokesman Matthew Middleton said Trump "continues to address Canada's discriminatory treatment of US commerce".
Canada's internal trade minister Dominic LeBlanc responded cautiously.
"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," LeBlanc said.
Why Susan Collins's tariff relief for Maine is being read as political
Collins first announced the exemptions, saying they would help Maine's agriculture industry. She said she had repeatedly asked senior Trump officials for tariff relief.
On X, Collins wrote that the exempted products were "crucial to Maine's agricultural industries, including blueberry, potato, apple, and seaweed producers".
She said she would "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".
Maine borders the Canadian provinces of New Brunswick and Quebec. According to the BBC, its economy, like those of other border states, is deeply linked to Canada and has felt the effects of the months-long trade war.
Collins's Democratic challenger, Troy Jackson, dismissed the relief as too little.
"Trump's trade wars have made life harder and more expensive for Mainers. Susan Collins enabled this chaos, voted to confirm the people behind it and now wants credit for bringing a cup of water to put out the fire," Jackson said.
The timing matters beyond Maine. The midterm elections will determine whether Trump's Republican Party or the Democrats control Congress for the remaining two years of his term.
Collins is not the only Republican feeling pressure from border trade. Michigan Republican lawmaker Mike Rogers has called on Trump to end the standoff, the BBC reported, after spending months supporting the policy in advertisements airing in his trade-reliant state.
Why did the US put a 50% tariff on Canadian goods?
The US imposed a 50% levy on $20bn (£15bn) worth of Canadian goods after trade talks between the two countries collapsed in August. Trump said the tariffs were a response to what he called "unequal treatment" of US car, dairy and alcohol exports.
Canada has answered with a series of countermeasures, which Prime Minister Mark Carney said were "necessary to protect our workers". Last month, Carney matched the US tariffs "dollar for dollar" after the breakdown in talks.
Since the tariff war erupted, Carney has also sought closer ties with Europe, according to the BBC.
Are the US and Canada close to a trade deal?
The two sides are sending different signals. On Friday, Trump said Canada was "working very hard" on a trade deal with the US.
Carney said Canada was open to a mutually beneficial deal but was prepared to wait, according to Canadian broadcaster CBC.
"We could sign it this afternoon if the US were there," Carney said, according to CBC. "If it has to be months from now or longer than that, or another administration, before a proper deal comes into place, we will do that."
Contacts between officials are continuing. LeBlanc confirmed on Thursday that a Canadian delegation met members of the Canada-United States Economic Relations Advisory Committee, the ninth such meeting since April 2026. The committee discussed the ongoing impact of US tariffs in Canada, the BBC reported.
Several questions remain open:
- Whether Collins secures the "additional relief" she says she is seeking.
- How Ottawa will respond to the new US tariffs on carpets and "waste products", which LeBlanc says Canada is still assessing.
- Whether a broader deal emerges before the midterms, or, as Carney suggests, much later.
The eased tariffs on plywood, paper, machinery, refrigeration equipment and some packing crates take effect on 30 October, days before voters in Maine decide between Collins and Jackson.