Trump adjusts tariffs on Canadian goods ahead of U.S. midterm elections

With less than two weeks to go before the U.S. midterm elections, President Donald Trump on Friday signed a proclamation modifying the scope of the 50-percent additional tariffs on certain Canadian products, removing some goods from the tariff list and adding others.

Under the proclamation, posted on the White House website, plywood sheets, certain paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes imported from Canada will no longer be subject to the additional 50-percent ad valorem duty, while certain valves, carpets, waste products and other items will be added to the list.

The changes apply to goods entered for consumption, or withdrawn from warehouses for consumption, on or after Oct. 30.

The measure revises a tariff regime Trump first imposed on Aug. 22, when he invoked Section 338 of the 1930 Tariff Act to levy 50-percent duties on about 20 billion U.S. dollars' worth of Canadian goods. Canada retaliated with tariffs on an equivalent value of U.S. imports, which took effect on Sept. 8.

The resulting trade friction has hit hard in Maine, Michigan and New Hampshire -- three northern U.S. states bordering Canada -- where Trump's tariff policy has already influenced Senate races, according to The Washington Post. Media analysis suggests the latest adjustment is aimed at helping Republican senators win reelection.

Speaking to reporters on Friday during a visit to Türkiye, Canadian Prime Minister Mark Carney played down the possibility that Trump would use poor midterm results as a pretext to impose more tariffs on Canada. He reiterated there is no hurry to sign any trade agreement with the U.S., hinting that he may wait until Trump's term ends before making a decision. Carney also dismissed as groundless claims that Canada is interfering in the U.S. midterm elections, and voiced disappointment with the U.S. embassy in Ottawa. His response came after the embassy on Wednesday released a so-called "fact sheet" accusing several Canadian political figures of seeking to meddle in U.S. politics ahead of the vote.

Trump adjusts tariffs on Canadian goods ahead of U.S. midterm elections

The U.S. consumer sentiment kept falling in October for the third month in a row, as purchasing power continued to dominate consumer views of the economy, according to findings of a survey released on Friday.

The final reading released by the University of Michigan Surveys of Consumers showed that the Index of Consumer Sentiment weakened to 48 in the October 2026 survey, 0.2 percent below September, and 10.4 percent below a year ago. The index was also 15 percent less than in February, just prior to the Iran conflict.

The Current Economic Conditions Index fell to 46.7, down from 50.9 in September and below last October's 58.6. The Index of Consumer Expectations inched up slightly to 48.8 from 46.3 in September, but was still below last October's 50.3.

Year-ahead inflation expectations in October ticked up from 4.6 percent in September to 4.7 percent. Long-run inflation expectations also stepped up from 3.4 percent in September to 3.5 percent. Inflation expectations over both time horizons increased for the second straight month to their highest readings since May.

The survey noted that Americans' dissatisfaction with how high prices are affecting their living standards continued to grow. In October, the share of consumers reporting that high prices are dragging down their personal finances rose for the fourth consecutive month to 56 percent, up from 45 percent in January.

US consumer sentiment continues to slip in October over inflation