Trump adjusts Canada tariffs while defending trade policy at campaign rally

President Donald Trump’s administration will remove 50% tariffs from several categories of Canadian goods while adding other products to the tariff list, the White House said Friday. The changes, covering exemptions for items including plywood sheets, some paper products, machinery and refrigeration equipment, and new duties on products including carpets, certain valves and waste, take effect Oct. 30.

The announcement came less than two weeks before the U.S. midterm elections. Republican Sen. Susan Collins of Maine, who is seeking reelection, said she had pressed administration officials for relief because farmers and other businesses in her state depend on Canadian equipment and materials that can be difficult or expensive to replace. Her Democratic opponent, Troy Jackson, criticized her support for the administration’s broader trade policies.

At a campaign rally in Georgia, Trump separately defended his use of tariffs and announced that Volkswagen had agreed to build a $4.2 billion Audi plant in the state with capacity to produce 200,000 vehicles annually. Trump attributed the investment to his tariff policy.

His defense came amid criticism of metal duties. A Montreal Economic Institute report cited by the National Post said U.S. steel prices had risen 33.9% and aluminum prices 58% since February 2025, while production and employment gains in the protected industries were limited. The report’s author, University of Toronto economist Joseph Steinberg, said the tariffs had raised costs without delivering the promised industrial revival.