The key facts

  • Trump signed an order on October 23 lifting 50 percent tariffs on a range of Canadian goods, including plywood and paper products
  • At the same time, the White House added carpets, paints, shampoos, cocoa powder, air conditioners, freezers and other goods to the tariff list
  • Canadian Minister Dominic LeBlanc said Ottawa is assessing the decisions and is ready for fair cooperation

Executive order on tariff changes

US President Donald Trump on October 23 signed an executive order changing tariffs on Canadian goods, DW reports. As Kun.uz relays citing the German outlet, high duties, including 50 percent tariffs, are being lifted on a number of Canadian products: plywood, certain types of paper products, equipment for the pulp and paper industry, packaging crates and cardboard boxes, as well as fresh and dried seaweed.

New items on the tariff list

At the same time, the White House added to the list of goods subject to duties: other products. The list now includes carpets, paints, shampoos, cocoa powder, wooden coffins, popsicle sticks, air conditioners, freezers, bows and arrows, and canoes.

Ottawa's reaction

Canada's Minister of Intergovernmental Affairs and Trade with the United States Dominic LeBlanc said Ottawa is assessing these decisions. According to him, Canada is ready for constructive and fair cooperation to shape trade relations that take the country's interests into account and benefit both sides.

Context of the trade conflict

Trade disputes between Washington and Ottawa intensified after Trump returned to the presidency. One sign of deteriorating relations was the imposition of mutual 50 percent tariffs; Trump has also repeatedly floated the possibility of turning Canada into the 51st US state. In late September, the US suspended imports from Canada of a number of goods — soft drinks, whey, certain dairy products and motorcycles — for an indefinite period. Washington took this measure after Ottawa's decision to retaliate against the high tariffs the US imposed in August.

Why it matters

The tariff revision directly affects Canadian producers in the forestry and paper industries, who gain easier access to the US market, while manufacturers of carpets, cosmetics, household appliances and other newly listed goods face new barriers. For companies and importers, this means having to rethink logistics and pricing in bilateral trade, and for Ottawa — continuing to assess the decisions, as Dominic LeBlanc stated. It remains unclear exactly how Canada will respond to the new tariffs: the report does not mention any retaliatory measures taken.