US lifts some tariffs on Canadian goods as trade dispute eases slightly

The United States will remove tariffs on selected Canadian goods from 30 October, the White House said, in a move that eases part of the trade dispute between the two countries. The decision affects a range of products including plywood sheets, some paper products, certain machinery and refrigeration equipment, and some packing crates and boxes. It comes after trade talks collapsed earlier this summer and the two sides entered an escalating tariff war that has affected businesses on both sides of the border.

The White House said the change was intended to protect the economic prosperity and national security of the American people. It also said the action reflected President Donald Trump's continued efforts to defend American workers and ensure fair trade, while offsetting what it described as the burden and disadvantage on US commerce from Canada's discriminatory treatment. The administration said some items would be removed from the tariff list and replaced with others, including certain valves, carpets and waste products.

The announcement was first highlighted by Republican Senator Susan Collins, who said she had worked with the administration to secure tariff relief. Collins, who is in a tight race in Maine, said the exemptions would help her state's agriculture industry. The timing gives the move political significance ahead of the midterm elections on 3 November, with affordability and economic pressures among the main concerns for many US voters.

The White House did not immediately provide further public detail beyond the statement. The tariff shift matters because the US-Canada dispute has become part of a wider debate over trade, prices and industrial policy. Tariffs can raise costs for importers and consumers, and the latest exemptions may be seen as an attempt to ease pressure in sectors that rely on cross-border supply chains.

They also come at a sensitive political moment, with the administration seeking to balance protectionist trade policy against concerns about economic strain. Canadian Prime Minister Mark Carney said on Friday that Canada is open to a mutually beneficial deal, but is prepared to wait for one. He said the two countries could sign an agreement quickly if the US were ready, but added that Canada would wait months or longer if necessary for a proper deal.

Canada's internal trade minister Dominic LeBlanc also confirmed that a delegation met members of the Canada-United States Economic Relations Advisory Committee for the ninth meeting since April 2026, with the ongoing impact of US tariffs on the agenda. What remains unclear is whether the tariff relief marks the start of a broader settlement or only a limited adjustment to the current dispute. Canada has not yet publicly responded to the White House announcement, and officials have not said whether further exemptions or negotiations are expected soon.

The next developments to watch are any formal Canadian reaction, whether the two governments resume wider trade talks, and whether the tariff changes affect the political debate in the run-up to the US elections.

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