Trump eases tariffs on some Canadian goods, keeps 50% duty on many others

US President Donald Trump has decided to ease the heavy import duty imposed on some products coming in from Canada. Trump is known the world over for his decisions, and his tariffs remain a headache for many countries. Tension between the US and Canada has been much discussed of late.

The move comes as the midterm elections in the US draw near and inflation remains a major issue for ordinary people. But the decision does not mean duties will be lifted from all Canadian goods, because duties on some other products have been raised.

Some Canadian goods have got relief, but many products have been brought back under the 50 per cent duty. These are reported to include carpets, paint, shampoo, air-conditioning equipment and a few other items. This makes it clear that US trade policy has not softened completely. It appears the administration wants to cut duties on select products while keeping up pressure on other sectors. The change may force traders in both countries to alter their import and export policies.

Under a new order from the Trump administration, some agricultural and forest products coming from Canada will be exempt from the 50 per cent duty. The list includes plywood, paper products, some machinery, cooling equipment and specific categories of packaging material. The changes are said to take effect from October 30, 2026. The government has said the aim of the decision is to reduce the impact on American businesses and protect trade interests.

After trade talks between the two countries failed in August, the US had imposed a 50 per cent duty on about $20 billion worth of Canadian goods. In response, Canada also imposed retaliatory duties on American products. The new decision may bring relief to some businesses, but there is no sign that the trade dispute will be fully resolved. Canada's trade minister, Dominic LeBlanc, has said his country is assessing the changes. The direction of talks between the two countries could affect trade, product prices and cross-border business.

The midterm elections in the US are to be held on November 3. Giving relief to businesses and farmers who depend on Canadian imports is therefore seen as politically significant. Republican Senator Susan Collins welcomed the decision and said it could benefit growers of blueberries, potatoes, apples and seaweed in the state of Maine. Specialised equipment and packaging material from Canada play an important part in these businesses.

Democratic candidate Troy Jackson, on the other hand, criticised Trump's tariff policy. He argues that trade duties have raised costs for businesses and ordinary people.