The U.S. is preparing to exempt 50% tariffs on certain goods from Canada, covering forest products and some equipment, after a trade war affected both economies amid pressure before the midterm elections.
On 23 Oct 2026 GMT+7, a White House spokesperson announced that the U.S. will exempt 50% import tariffs on certain Canadian goods, effective from 30 Oct, following escalating trade tensions after failed negotiations last summer.
The exemption covers goods such as plywood, certain paper products, some machinery, cooling equipment, and certain packaging boxes. The White House also noted plans to adjust the list with items like valves, carpets, and scrap products. It affirmed the measure aims to protect U.S. workers, promote fair trade, and respond to what it views as discriminatory trade practices by Canada.
President Donald Trump stated that Canada is making strong efforts to reach a trade deal with the U.S., while Canadian Prime Minister Mark Carney said Canada is ready for a mutually beneficial agreement but will wait if no suitable deal can be reached at this time.
However, The Wall Street Journal reported that the tariff exemption, focusing on Canadian agricultural and forestry goods, may be aimed at aiding Republican candidates ahead of the 3 Nov midterm elections, especially Senator Susan Collins from Maine, who is in a tight race to retain her seat.
Source: CNN