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The White House announced on October 23 2026 that President Donald Trump had modified tariffs on Canadian products by removing the 50 percent duty on plywood sheets some paper products certain machinery refrigeration equipment packing crates boxes and seaweed. A fact sheet from the administration stated that these exemptions would be offset by adding the same tariff rate to products including carpets paints waste shampoos cocoa powder wooden coffins ice cream sticks air conditioning machines chest freezers archery equipment and canoes. The changes take effect on October 30 according to the presidential proclamation. Reuters reported that the adjustment followed a request from Senator Susan Collins of Maine whose reelection race is closely contested on November 4.
Collins said in a statement carried by Reuters that the exempted products would support Maine producers of blueberries potatoes apples and seaweed. She added “These producers are a vital part of our state’s economy and support our rural and coastal communities” and noted that many farmers rely on specialized equipment packaging materials and other products from Canada that are either unavailable from American suppliers or cannot be replaced without incurring significant expense. Bloomberg reported that the original 50 percent tariffs were imposed on roughly 20 billion dollars of Canadian exports after trade talks collapsed in August. Statistics Canada figures show that Canadian exports to the US surged 8.1 percent in August as importers moved ahead of the duties.
The White House fact sheet explained that the Section 338 tariffs apply in addition to duties under Section 232 of the Trade Expansion Act and regardless of whether goods qualify under the USMCA. It stated that the refinements continue to address Canada’s discriminatory treatment of US commerce while better serving the public interest. Reuters reported that Canada responded to the initial tariffs with its own duties ranging from 15 percent to 50 percent on 20 billion dollars of US goods in September. Prime Minister Mark Carney has since accelerated efforts to diversify Canada’s trade relationships according to multiple accounts.
Data compiled by Statistics Canada placed Canada’s trade surplus with the US at C$11.2 billion in August the highest in 19 months following the pre-tariff shipment surge. The agency reported that the share of Canadian exports destined for the US rose to nearly 70 percent that month before falling to 66.3 percent in July the lowest outside the pandemic period. A Bloomberg assessment found that year-to-date the US share of Canadian exports stood around 68 percent in recent months down from 73 percent a year earlier. The modifications form part of a series of proclamations adjusting the tariff scope since July according to the White House.
The Congressional Research Service has documented in prior reviews that North American supply chains often move components across the US-Canada border multiple times before final production amplifying tariff effects. Reuters noted that Trump stated on the day of the order that Canada is working very hard to make a deal with the US adding that the US holds all the cards in negotiations. The White House said the latest proclamation pursuant to Section 338 of the Tariff Act of 1930 further refines measures first introduced to counter Canadian retaliation. Additional Harmonized Tariff Schedule updates are detailed in an annex to the order.
