Trump ends tariffs on some Canadian goods as Sen. Collins faces tight race

By David Shepardson

WASHINGTON, Oct 23 (Reuters) – With an incumbent U.S. senator from Maine in his own party locked in a tight re-election battle, President Donald Trump on Friday signed an order to eliminate 50% tariffs on some Canadian agricultural and forestry products, a move that could benefit businesses in the northern state.

The Republican president’s high tariffs on Canada have caused friction with the United States’ northern neighbor while creating problems for American businesses in Maine and other states that rely on some “Canadian” products.

As the November 3 US midterm elections approach and Republicans fight to maintain control of both houses of Congress, Senator Susan Collins has urged the White House to tackle tariffs on goods that affect businesses and farmers in Maine, a state bordering Canada.

COLLINS, IN TIGHT RACE IN MAINE, PRAISES RATE RELIEF

Trump’s order exempted plywood sheets, certain paper products, some refrigeration machinery and equipment, and packaging crates and boxes, as well as fresh and dried seaweed, the White House said.

The changes will come into effect on October 30, four days before the election.

Trump added a number of Canadian products to the 50% tariff list to offset the tariff relief provided in his order, including carpets, paints, garbage, shampoo, cocoa powder, wooden coffins, ice cream sticks, air conditioners, chest freezers, archery equipment and canoes.

Collins said the aid would help Maine’s blueberry, potato, apple and seaweed growers.

“These producers are a vital part of our state’s economy and support our rural and coastal communities,” Collins said. “Many of our farmers and producers rely on specialized equipment, packaging materials and other products from Canada that are not available from U.S. suppliers or cannot be replaced without incurring significant expense.”

Democrat Troy Jackson is seeking to oust Collins in a race that polls show is very close. The two men argued over tariffs during a debate on October 6.

“Trump’s trade wars have made life harder and more expensive for Mainers,” Jackson said Friday after Trump’s action. “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.”

Collins did not immediately respond to a request for comment on Jackson’s remarks.

In August, Trump imposed 50% tariffs on $20 billion in Canadian imports, which took effect after negotiations between the two countries broke down. Canada retaliated in September with tariffs ranging from 15% to 50% on $20 billion in U.S. goods.

Canada and the United States have been at an impasse over tariffs since Trump imposed them. Trump said Friday that Canada was working on a deal.

BORDER STATE REPUBLICANS SEEK TO FIND BALANCE

Republican candidates in northern U.S. border states hardest hit by tariffs, including Maine and Michigan, are trying to strike a balance between appealing to Trump’s conservative base and winning over independent voters.

In a statement regarding Trump’s action Friday, White House spokesman Matthew Middleton said the president “continues to address Canada’s discriminatory treatment of U.S. trade” and that the new measures “further refine the scope” of previously announced tariffs.

Dominic LeBlanc, Canada’s minister responsible for trade with the United States, said Ottawa was evaluating Trump’s latest tariff change. “Canada stands ready to work constructively and in good faith toward a more mutually beneficial trading relationship that is respectful of Canada’s interests,” LeBlanc said in a statement.

The economies of Michigan and Maine have long been linked to those of Canada, covering everything from auto parts to lumber to fruit-picking equipment. Republicans may need to win hotly contested Senate elections in both states to maintain their slim majority in the House.

“Trump’s desperate, last-minute attempt to save Susan Collins’ political career is an admission that American voters reject his toxic tariff policies,” Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, said Friday. “No one will forget how Trump raised the prices of thousands of products American families need by imposing trade taxes on products around the world.”

Republican U.S. Senate candidate from Michigan Mike Rogers, who previously called for an end to the trade war with Canada, praised Trump for imposing tariffs on Canadian waste. “If you’re going to put tariffs on anything coming from Canada, it should be the damn garbage they’ve been dumping into our state for decades,” Rogers said.

Trump’s threat in September to block Canadian plane maker Bombardier from the U.S. market has become a political issue in Kansas, where the company employs 1,500 people in Wichita. Trump lifted the ban threat this week after calls from Kansas lawmakers, including Republican Sen. Roger Marshall, who is also in a tough re-election race.

(Reporting by David Shepardson in Washington and Kanjyik Ghosh in Barcelona; editing by Will Dunham and William Mallard)

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