As the economy becomes the main talking point of US politics ahead of next month’s all-important midterms, President Donald Trump has climbed down from his trade warfare against Canada, removing the 50% tariffs on selected Canadian agricultural and forestry products, a move that will not only offer relief to businesses in Maine but embolden the prospects of Republican Senator Susan Collins, who faces a closely contested reelection battle.
Trump signed an executive order on Friday exempting several Canadian products from the tariffs, including plywood sheets, certain paper products, machinery, refrigeration equipment, packing crates and boxes, and fresh and dried seaweed.
The changes take effect on October 30, four days before the elections.
The move comes as Trump’s trade policies have strained relations with Canada and increased costs for American businesses that depend on Canadian imports.
Tariffs on agricultural supplies, forestry products, and specialised equipment have particularly impacted Maine, which shares a border with Canada.
Collins had urged the White House to address tariffs affecting businesses and farmers in her state.
The Republican senator is facing a strong challenge from Democrat Troy Jackson, with polls indicating a close race that could influence the battle for control of the US Senate.
The White House said the latest changes would refine the scope of previously announced tariffs while continuing to address what the Trump administration described as Canada’s discriminatory treatment of US commerce.
Collins welcomed the exemptions, saying they would benefit Maine’s blueberry, potato, apple, and seaweed producers, which rely on Canadian supplies and equipment.
“These producers are a vital part of our state’s economy and support our rural and coastal communities,” the senior Republican remarked.
As per Collins, Maine’s agricultural communities are dependent on specialised equipment, packaging materials, and other Canadian products that are either unavailable from American suppliers or cannot be replaced without significant expense.
Alongside the tariff reductions, Trump added few other Canadian products to the 50% tariff list to offset the relief granted under the order.
These included carpets, paints, waste, shampoos, cocoa powder, wooden coffins, ice cream sticks, air-conditioning machines, chest freezers, archery equipment, and canoes.
Jackson criticised Collins following the announcement, arguing that the senator was seeking political credit for addressing problems created by Trump’s tariff policies.
“Trump’s trade wars have made life harder and pricier for Mainers,” Jackson said on Friday.
The Democrat further stated, “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.”
The dispute highlights the political challenge facing Republican candidates in states where businesses depend heavily on cross-border trade.
In the lead-up to the midterms, they are facing the herculean task of balancing the support among Trump’s conservative voters while addressing concerns among independent voters about higher costs and the impact of tariffs on local employers.
Senator Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, also criticised Trump’s announcement, describing it as an attempt to protect Collins’ reelection prospects.
“Trump’s desperate, 11th-hour attempt to save Susan Collins’ political career is an admission that American voters are rejecting his toxic tariff policies,” Wyden said.
He argued that tariffs had raised prices on thousands of products needed by American households.
Trump imposed 50% tariffs on USD 20 billion worth of Canadian imports in August after trade negotiations between the two countries collapsed.
Uncle Sam’s northern neighbor, in its kind of retaliation, imposed tariffs ranging from 15% to 50% on USD 20 billion worth of US goods.
The two North American majors, since then, have remained locked in a trade dispute while simultaneously engaging in diplomatic talks to ensure that those commercial relationships between the two that span manufacturing, agriculture, forestry, and other industries don’t get affected adversely in the long run.
On Friday, Trump asserted that Canada was working toward a deal. Dominic LeBlanc, Canada’s minister responsible for trade with the US, said Ottawa was assessing the latest changes.
“Canada stands ready to work constructively and in good faith towards a more mutually beneficial trading relationship that respects its interests,” LeBlanc said.
The restoration of the economic relationship between Washington and Ottawa is particularly important to states such as Maine and Michigan, where industries rely on cross-border supplies ranging from lumber and automotive components to fruit-picking equipment.
Republicans may need to retain closely contested Senate seats in both states to preserve their narrow majority in the chamber.
In Michigan, Republican Senate candidate Mike Rogers, who has previously called for an end to the trade war with Canada, praised Trump for imposing tariffs on Canadian waste.
“If you’re going to be putting tariffs on anything from Canada, it ought to be the damn trash they’ve been dumping in our state for decades,” Rogers said.
Trump takes a U-turn on Bombardier
The political implications of Trump’s tariff policy have also extended beyond agricultural and forestry products, with Canadian aerospace manufacturer Bombardier announcing plans to invest USD 270 million in the US and create 300 additional jobs.
The announcement came days after Trump abandoned threats to block the aviation giant’s access to the US market.
Bombardier employs approximately 1,500 people in Wichita, Kansas, where the company established its US headquarters after acquiring Learjet in 1990.
The company has around 3,500 employees across the country, more than 40% of whom work in Wichita.
Trump’s September threat to block Bombardier aircraft became a political issue in Kansas, where Republican Senator Roger Marshall is also facing a difficult reelection campaign.
The threat prompted calls to the White House from Kansas lawmakers, including Marshall.
During a speech in Wichita on Monday, Trump said he did not intend to hurt Bombardier and would look after its workers.
Bombardier had announced USD 50 million in investment in its Wichita operations earlier this month.
The company plans further funding for operations in Indiana, Connecticut, and Texas.
It also reiterated on Friday that it was recruiting for 500 existing vacancies across the US and expected its expansion projects to create another 300 jobs.
“Based on our constructive conversations with the US administration, we see a bright path forward for our highly skilled aerospace workers as well as a positive environment for Bombardier to continue pursuing direct investments to grow our American footprint,” CEO Eric Martel said.
Trump said in a Truth Social post late on Thursday that Bombardier’s investment would create jobs in Kansas, Texas, and Indiana.
The company has also faced pressure over aircraft certification.
In February, Trump threatened to decertify Bombardier aircraft amid a certification dispute involving rival Gulfstream Aerospace.
That threat did not materialise after Transport Canada approved the jets.
Image Courtesy: White House