US lifts 50% tariffs on some Canadian goods but adds others to the list
The White House drops plywood, paper and some machinery from Canada from its tariff list and taxes valves, carpets and waste instead.
Event: October 30, 2026
Primary source: October 23, 2026
Published here: October 23, 2026 at 09:20 PM UTC
Read: 2 min
What happened
Trump signed a proclamation that changes the list of Canadian goods under the 50% tariff. From 30 October plywood, some paper products, some machinery and refrigeration equipment, crates and boxes come off the list. Some valves, carpets, waste products and other goods go on instead.
Why it matters to you
This is not the end of the trade war, it is a reshuffle. Some inputs for US farms and factories get cheaper, others get pricier. The US-Canada trade fight moves the Canadian dollar, commodity prices and shares of firms that trade across the border.
What to check and watch
Watch whether Canada responds and whether talks restart. The changes take effect on 30 October, and US midterm elections are on 3 November.
US-Canada trade talks collapsed this summer. According to the White House, Canada imposed retaliatory tariffs on about $20 billion of US exports. Trump answered with five proclamations under Section 338 of the Tariff Act of 1930. Tariffs on Canadian goods were announced on 20 July and changed on 8 September.
The new proclamation from 23 October changes the list again. Plywood sheets, some paper products, certain machinery and refrigeration equipment, packing crates and boxes come off. Certain valves, carpets, waste products and other goods are added instead. The changes start on 30 October.
These tariffs apply to Canadian goods even if they qualify under the US-Mexico-Canada Agreement (USMCA). They also come on top of Section 232 tariffs, which the US imposes on national security grounds.
Maine Senator Susan Collins announced the exemptions first. She said they help the state's blueberry, potato, apple and seaweed growers, who rely on Canadian equipment and packaging. The Wall Street Journal, as reported by the BBC, linked the exemptions to the 3 November congressional elections.
Canadian Prime Minister Mark Carney said Canada is open to a deal but is willing to wait months if needed, the BBC reports, citing CBC. Canada had not officially commented on the new proclamation at the time of publication.
Confirmed facts
- On 23 October Trump signed a proclamation under Section 338 of the Tariff Act of 1930 that changes the list of Canadian goods under tariffs.[1]
- Plywood sheets, some paper products, certain machinery and refrigeration equipment, packing crates and boxes come off the list.[1][2]
- Certain valves, carpets, waste products and other goods are added instead.[1][2]
- The changes take effect on 30 October 2026.[1][2]
- The move covers part of the 50% tariffs on Canadian goods.[2]
- Section 338 tariffs apply regardless of USMCA origin and come on top of Section 232 tariffs.[1]
- According to the White House, Canada imposed retaliatory tariffs on about $20 billion of US exports.[1]
- Senator Susan Collins announced the exemptions first and described them as help for Maine farmers.[2]
- US congressional elections take place on 3 November.[2]
Implications
- ConfirmedUS buyers of Canadian plywood, paper and packaging will pay less in tariffs from 30 October.
- ConfirmedImporters of Canadian valves, carpets and waste products will start paying the tariff.
- Our readingThe overall level of the trade war barely changes, so for markets this is more a signal than a turning point.
Still unknown
- The exact product list with tariff codes and how much trade the changes cover.
- How Canada will respond and whether talks will restart.
Who it affects
United States, Canada. Those who trade the Canadian dollar, commodities or shares of companies doing business across the US-Canada border
Sources
- The White House: Fact Sheet: President Donald J. Trump Further Modifies Canadian Products Subject to Tariffs Under Section 338 October 23, 2026 · official
- BBC News: White House says the US is lifting tariffs on some Canadian goods October 23, 2026 · media
Cover: Freekonomist graphic, a symbolic image, not a photo of the event. This is a news explainer, not financial advice.
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