Election season is doing what trade negotiators couldn’t.
The Wall Street Journal reports the US is preparing to lift 50% tariffs on some Canadian agricultural and forestry products, with a proclamation possibly coming as soon as today
The motivation is political: Maine Sen. Susan Collins has been lobbying for relief and is in a dead heat with Democrat Troy Jackson with less than two weeks to go until Election Day. Unfortunately, there is no real sign of a political thaw here as Trump could also raise other tariffs.
USD/CAD is dow n18 pips to 1.3990 today and unmoved on this report. The details: Scope and timing could still change, according to the WSJ’s sources The cuts may be offset by higher tariffs on other Canadian goods The White House says any announcement will come from the administration and calls the reports speculation USTR declined to comment This would be the second adjustment to the 50% tariffs. Last month, Washington exempted road salt and cement and added other products to keep the affected total at about $20 billion, or roughly 5% of Canadian exports to the US.