U.S. changes Canadian goods facing additional 50 per cent tariff

U.S. President Donald Trump is removing some Canadian wood, paper and machinery products from an additional 50 per cent tariff while extending the charge to certain valves, carpets and waste products.

The changes take effect at 12:01 a.m. eastern time on Oct. 30, under a proclamation signed Oct. 23.

An accompanying U.S. administration statement says the exemptions cover certain plywood sheets, paper products, machinery, refrigeration equipment and packing crates and boxes. The statement provides examples rather than a complete list of affected goods.

The move changes which products face the tariff while keeping the additional rate at 50 per cent.

The administration says the tariff applies even to goods that qualify for preferential treatment under the Canada-United States-Mexico Agreement, known as CUSMA. It also applies on top of any tariffs imposed under Section 232, a U.S. law used to restrict imports on national security grounds.

Trump says the measures counter Canadian policies that unfairly disadvantage U.S. vehicle and auto parts exports.

The administration has accused Canada of walking away from a nearly completed trade deal over the summer and imposing new retaliatory tariffs on about US$20 billion in American exports.