US lifts tariffs on Canadian plywood and paper products, imposes new levies on valves and carpets
The White House announced the removal of tariffs on specific Canadian goods, including plywood sheets, paper products, machinery, and refrigeration equipment, effective 30 October. The move replaces these with new tariffs on valves, carpets, waste products, and other items, amid ongoing US-Canada trade negotiations.
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Tariffs lifted on key Canadian goods
The US will remove tariffs on Canadian plywood sheets, paper products, certain machinery, refrigeration equipment, and packing crates and boxes starting 30 October, according to the White House. The exemptions target sectors critical to Canadian agriculture and forestry, including products like blueberries, potatoes, apples, and seaweed, which are crucial to Maine’s economy.
US Senator Susan Collins, a Republican from Maine, stated she secured these exemptions after repeated requests to senior Trump administration officials. Collins emphasized the importance of these products to her state’s agricultural industries, which have been affected by the trade dispute.
New tariffs replace removed levies
The removed tariffs will be replaced with new levies on other Canadian goods, including valves, carpets, and waste products. The White House framed the changes as part of efforts to address what it described as Canada’s "discriminatory trade practices," aiming to offset their burden on US commerce.
The adjustments come ahead of the US midterm elections, with reports suggesting the exemptions were influenced by political considerations to aid Republican lawmakers, including Collins.
Canada’s response and trade negotiations
Canadian Prime Minister Mark Carney stated that Canada is open to a mutually beneficial trade deal but is prepared to wait for favorable terms. A Canadian delegation recently met with US counterparts to discuss the impact of tariffs, marking the ninth such meeting since April 2026.
While the White House claimed Canada is actively working toward a deal, Carney’s remarks indicate a cautious approach. The ongoing discussions highlight the broader tensions in US-Canada trade relations.
Political reactions and implications
The tariff adjustments have drawn mixed reactions from US lawmakers. Michigan lawmaker Mike Rogers, who previously supported the tariffs, has urged President Trump to end the trade standoff. Rogers’ shift reflects concerns about the economic impact of the dispute on border states like Maine, where industries are deeply integrated with Canadian supply chains.
The Wall Street Journal reported that the exemptions were partly designed to bolster Republican candidates, including Collins, in the upcoming midterm elections. Collins’ Democratic challenger, Troy Jackson, has criticized the trade war’s impact on local economies, further intensifying the political debate.
Midterm elections and trade policy
This tariff adjustment follows earlier Lazyfounder reporting on the White House’s strategic shifts ahead of the 2026 US midterm elections. With Republican operatives privately attributing potential losses to redistricting failures and foreign policy fallout, the administration appears to be recalibrating its trade policies to mitigate electoral risks. The tariff exemptions for Canadian agricultural and forestry products may reflect an effort to shore up support in key states like Maine, where cross-border trade plays a significant economic role.
Previous reporting also highlighted the White House’s broader strategy of pursuing foreign policy achievements and legal maneuvers to protect senior aides from Congressional subpoenas, as Trump’s approval ratings remain low.
What this means
Lazyfounder analysis — our interpretation, not reported fact.
For founders and operators, this tariff shift signals heightened uncertainty in cross-border trade, particularly for businesses reliant on Canadian agricultural, forestry, or manufacturing inputs. The replacement of some tariffs with new levies on valves, carpets, and waste products could disrupt supply chains for industries that source these materials from Canada. Startups in border states or those with integrated North American operations should assess their exposure to these changes and explore diversification or alternative suppliers.
The political timing of this move suggests that trade policy could remain volatile in the lead-up to the US midterm elections. Founders should monitor further adjustments, particularly if their businesses are tied to sectors like packaging, specialized machinery, or refrigeration equipment, where tariffs have been lifted. For Canadian startups, the emphasis on forestry and agricultural exemptions may create short-term opportunities, but the broader trade tensions could persist, requiring contingency planning.
Related on Lazyfounder
Sources
- BBC News (Tech & Business) · 2026-10-23
White House says the US is lifting tariffs on some Canadian goods - BBC News (Tech & Business) · 2026-10-23
White House says the US is lifting tariffs on some Canadian goods - BBC News (Tech & Business) · 2026-10-23
US lifts tariffs on some Canadian goods before midterm elections
This story is an original summary drafted with AI by Lazyfounder from the reporting listed above and checked by automated validation. Facts are attributed to their original publishers; sections marked as analysis are Lazyfounder's. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links, and see our AI policy and corrections policy.
About the author
Editor, Lazyfounder
Tarun Mottlia edits LazyFounders, covering Indian startups, funding rounds, AI and product launches. Every story on the site is AI-assisted and checked against its cited sources before publication.
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