President Donald Trump signed an order that exempts some Canadian products, including plywood, packing crates and machinery, from 50% U.S. tariffs starting October 30.
The exemptions also cover some paper products and refrigeration equipment, according to the White House. The White House said the changes apply whether or not the goods qualify under the U.S.-Mexico-Canada Agreement. Tariffs remain in place on other covered imports and may be added to some separate U.S. tariffs.
The administration imposed the tariffs on about $20 billion worth of Canadian goods amid a growing trade dispute between the neighboring countries. Trump’s order adds certain valves, carpets and waste items to the tariff list. This changes which goods are covered rather than broadly removing tariffs.
Republican Sen. Susan Collins of Maine said she had urged the administration to lower costs on Canadian supplies used by businesses and farmers in her state. She said the supplies include equipment and packaging that may be difficult or expensive to replace. The move comes as Collins faces a close reelection contest against Democrat Troy Jackson.
The White House described the policy as serving the public interest and did not mention her campaign. U.S. importers, not foreign governments, pay the tariffs. Importers may absorb those costs or pass them on to customers.