The President of the United States, Donald Trump, signed an executive order on Friday (the 23rd) to cancel the 50% tariff on certain agricultural and timber products imported from Canada. This measure could potentially benefit American agricultural businesses that rely on these products.
The White House reported that among the goods exempted from the tariff are plywood, certain types of paper, some machinery, refrigeration equipment, as well as crates and packaging for transporting goods.
Senator Susan Collins from Maine emphasized the importance of these producers to her state's economy, noting that they support rural and coastal communities. According to her, many farmers and manufacturers need specialized equipment, packaging materials, and other Canadian products that are either unavailable from American suppliers or whose replacement entails high costs.
The decision was made after the Republican senator appealed to the White House to review tariffs on goods affecting companies and farmers in her state. She is currently involved in a tight re-election battle.
Understanding the Trade War Between the US and Canada
Republican candidates in northern US states bordering Canada, such as Maine and Michigan, are trying to balance supporting Trump's loyal base while attracting votes from independent voters, as these states are particularly hard hit by tariffs.
Collins stated that this initiative will have a positive impact on blueberry, potato, apple, and seaweed producers in Maine. Collins and her opponent, Democrat Troy Jackson, discussed the issue of tariffs during the October 6 debates.
Since then, the governments have been in a trade deadlock. However, on Friday, Trump announced that Canada is working on reaching an agreement with the United States. The White House also reported that certain types of valves, carpets, waste, and other items will be included in the list of goods covered by this measure.
The economies of Maine and Michigan are closely linked to the Canadian economy, which supplies automotive parts, lumber, and fruit harvesting equipment. This is why tariffs have a significant impact on these states. The trade dispute also has political implications: Republicans will likely need to win in Maine and Michigan in the November 3 elections to maintain control of the US Senate.