WASHINGTON, D.C. / ConSynSer / – President Donald Trump signed an order on Friday lifting 50% U.S. tariffs on several Canadian forestry and agricultural products, the White House said. Plywood sheets, some paper products and packing crates and boxes are among the exempted goods. The order also covers certain machinery, refrigeration equipment and fresh and dried seaweed. The exemptions take effect on October 30. Businesses in the state of Maine are expected to benefit most.
Maine Senator Susan Collins lobbied for the relief ahead of the November 3 midterm elections. Collins, a Republican, is among the most closely watched incumbents in this year’s Senate races. She raised the issue with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, her office said. Collins said the exemptions would support Maine’s blueberry, potato, apple and seaweed industries. Democratic challenger Troy Jackson said she acted only because her seat is in danger.
The administration is offsetting the relief with new duties on other Canadian goods. A U.S. official said the overall tariff impact will stay the same. Carpets, paints, shampoos and cocoa powder now face the 50% rate. So do wooden coffins, ice cream sticks, air-conditioning machines and chest freezers. Archery equipment, canoes, certain valves and some waste products were also added to the list. The changes swap duties on plywood, paper, machinery and packing goods for levies on the newly listed items.
Section 338 duties cover US$20 billion in imports
The 50% tariffs first applied in August to about US$20 billion of Canadian goods. Washington imposed them under Section 338 of the Tariff Act of 1930, and they took effect on August 22. The duties apply even to goods that qualify for duty-free treatment under the U.S.-Mexico-Canada Agreement. Energy, potash and goods covered by Section 232 tariffs were excluded. The White House tied the measures to disputes over Canadian dairy, alcohol and auto policies.
Electrical and construction goods, jewelry, textiles, cosmetics, wood derivatives, plastics and alcoholic beverages were on the original list. Oxford Economics estimated the duties affect around 5.5% of Canada’s 2025 exports to the United States. It said they lift the effective U.S. tariff rate on Canadian exports from 5.1% to 6.9%. Manufacturers in Quebec, New Brunswick and Ontario face the greatest exposure, with Quebec facing the largest provincial losses.
Ottawa’s countermeasures remain in place
Talks on a wider Canada-U.S. trade arrangement broke down in August and have not resumed in substance. Canada answered with countermeasures of 15%, 25% and 50% on C$27.6 billion of U.S. goods. Those duties took effect on September 8 and cover more than 700 tariff items. Ottawa has since removed seafood products from its retaliatory list. Washington exempted road salt and other products in September at Collins’ request.
Under the new order, the exemptions apply to goods entering the United States from October 30. The newly listed Canadian products will face the 50% duty under the same changes. The Canadian government has not publicly commented on the latest adjustments. Existing U.S. tariffs on Canadian steel, aluminum and automobiles remain separate from the Section 338 measures. Those duties fall under Section 232 national security authorities.