Trump Exempts Canadian Products from 50% Tariffs on $20 Billion in Imports
Key Facts
U.S. President Donald Trump announced exemptions from additional 50% tariffs for some Canadian imports, covering Canadian products worth $20 billion, with the change taking effect on October 30, 2026. The exempt products include plywood sheets, packing boxes and some machinery, according to the Associated Press. The White House said the aim was to "ease the burden on U.S. trade while serving the public interest." The decision changes the scope of tariffs on specific products by excluding goods that Republican Sen. Susan Collins said some farmers and businesses depend on. The announcement comes as Collins faces a difficult re-election race in Maine, according to the news agency.
Collins linked the exemptions to the tariffs’ impact on domestic sectors, saying she had spoken with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick about "the costs the tariffs impose on Maine families, businesses, farmers and producers." She added that many farmers and producers rely on specialized equipment, packing materials and products from Canada, some of which are "not available from U.S. suppliers or cannot be replaced without incurring significant costs." These remarks place the exemptions in the context of input costs for goods that are difficult to source domestically, rather than a general change to the tariff rate. The Associated Press reported that Trump is seeking to help Collins in her re-election fight in Maine. The available facts do not specify the value of imports covered by the new exemptions separately from the value of products subject to the tariffs.
Washington had imposed additional 50% tariffs on specific Canadian products under Section 338, while an earlier notice published in the Federal Register said the tariffs would apply to products listed in its annex and remove other products from their scope. The changes in that notice took effect on September 15, 2026, according to the Federal Register. In the same month, the Trump administration said it had removed products such as rock salt and cement from the scope of the tariffs and added other products, with those changes set to take effect on September 15. The current notice adds new exemptions, including plywood sheets, packing boxes and some machinery, and sets October 30 as their effective date. The lists of covered and exempt products have thus changed in stages, while the 50% rate remains in place for goods not covered by an exemption.
The changes to U.S. lists coincide with retaliatory measures Ottawa announced in August. Canada’s Department of Finance said the United States had imposed 50% tariffs on Canadian goods worth 27.6 billion Canadian dollars effective August 22, and that Canada would respond with tariffs at the same rate on U.S. imports. The department set the value of U.S. imports covered by Canadian tariffs at 27.6 billion dollars and announced a new and enhanced support package worth 7.5 billion dollars for affected workers and businesses. This places the U.S. exemptions within a trade dispute in which both governments have taken steps involving tariffs and economic support. In September, the dispute escalated with a U.S. announcement of a ban on nearly $1 billion worth of Canadian products, including alcoholic beverages, dairy products and motorcycles, according to the Associated Press.
On the legal front, J. Gellert Global, a family-owned company that imports Canadian cheese, filed a lawsuit in the U.S. Court of International Trade challenging Trump’s authority under the law. The Associated Press said the suit challenges the president’s ability to impose 50% tariffs on Canadian goods worth $20 billion. The news agency reported that tariff authority under Section 338 has never been used in a trade dispute and has not been tested in court. The White House said the administration would vigorously defend the tariffs on Canadian imports and considers Section 338 appropriate to address what it views as Canadian discrimination against U.S. exports of dairy, alcohol and cars. The filing of the lawsuit does not mean the tariffs have been ruled invalid; the new exemptions take effect on October 30, 2026.