Trump lifts some Canada tariffs ahead of midterms

WASHINGTON: US President Donald Trump's administration lifted some tariffs on Canadian imports Friday (Oct 23), two weeks ahead of midterm elections, after a vulnerable Republican candidate said she lobbied for the change.

The easing of tariffs will apply to products including "plywood sheets, some paper products, certain machinery and refrigeration equipment," the White House said in a statement.

The change could help Senator Susan Collins, who faces a strong challenge from a Democrat in the US-Canada border state of Maine, which has been hit hard by Trump's trade war.

She posted on social media that she had "secured" the exemptions for "products crucial to Maine's agricultural industries, including blueberry, potato, apple, and seaweed producers."

Democrats are targeting Collins's seat in their attempt to win control of Congress from the Republicans in the Nov 3 midterms.

The economies of the United States and Canada are heavily interconnected, with roughly 70 per cent of all Canadian exports heading to the United States.

Tensions between the North American neighbours have been high since trade talks broke down in August, with Trump imposing a slew of new tariffs in response.

Friday's action lifts tariffs on certain goods, but imposes levies on new ones, including carpets, certain valves and waste products, the White House said. The new measures will take effect on Oct 30.

Collins said many farmers in her state "rely on specialised equipment, packaging materials, and other products from Canada that are either unavailable from American suppliers or cannot be replaced without incurring significant expense".

Previous Trump levies on autos, steel, aluminium and lumber have hit Canada hard, forcing job losses and stunting growth. Canada has entered a technical recession this year after two consecutive quarters of economic contraction.

Trump's tariffs enforced after the talks broke down impacted around US$20 billion worth of goods, or 5.5 per cent of Canadian exports to the United States, targeting products ranging from hockey sticks to cement.

Since taking power in his second term, Trump has upended the global trade order by imposing wide-ranging tariffs on friend and foe alike, saying that other countries have been taking advantage of the United States.

He has also explicitly tied some threatened tariffs to political or foreign policy objectives.