WASHINGTON, Oct 23 (Reuters) - With an incumbent Maine US senator from his own party locked in a tight reelection battle, President Donald Trump signed an order on Friday to remove 50% tariffs on some Canadian agricultural and forestry products in a move that could benefit companies from the state.
The Republican president's hefty tariffs on Canada have caused friction with the US neighbor to the north while creating problems for American businesses in Maine and other states that rely on certain Canadian goods.
With the November 3 US midterm elections looming and Republicans fighting to retain control of Congress, Senator Susan Collins had urged the White House to address tariffs on products affecting Maine companies and farmers.
Trump's order exempted plywood sheets, some paper products, certain machinery and refrigeration equipment, and packing crates and boxes, as well as fresh and dried seaweed, the White House said.
The changes take effect on October 30, four days before the election.
Trump added a number of Canadian products to the 50% tariff list to offset the tariff relief provided in his order, including carpets, paints, shampoos, cocoa powder, wooden coffins, ice cream sticks, air-conditioning machines, chest freezers, archery equipment and canoes.
Collins said the relief will aid Maine's blueberry, potato, apple and seaweed producers.
"These producers are a vital part of our state's economy and support our rural and coastal communities," Collins said. "Many of our farmers and growers rely on specialized equipment, packaging materials and other products from Canada that are either unavailable from American suppliers or cannot be replaced without incurring significant expense."
Democrat Troy Jackson is seeking to oust Collins in next month's election in a race that polls indicate is very close. The two sparred over tariffs at an October 6 debate.
"Trump's trade wars have made life harder and more expensive for Mainers," Jackson said on Friday after Trump's action. "Susan Collins enabled this chaos, voted to confirm the people behind it, and now wants credit for bringing a cup of water to put out the fire."
Trump in August imposed 50% tariffs on $20 billion of Canadian imports, which took effect after talks between the two countries collapsed. Canada retaliated in September with tariffs ranging from 15% to 50% on $20 billion in US goods.
Canada and the United States have been engaged in a standoff over the tariffs since Trump imposed them. Trump on Friday asserted that Canada is working on a deal.
Republican candidates in northern US border states most affected by the tariffs, including Maine and Michigan, are trying to strike a balance between appealing to Trump's loyal conservative base and winning over independent voters.
'REFINING THE SCOPE'
In a statement concerning Trump's action on Friday, White House spokesperson Matthew Middleton said the president "continues to address Canada's discriminatory treatment of US commerce" and that the new moves are "further refining the scope" of the previously announced tariffs.
The Canadian Embassy in Washington did not immediately respond to a request for comment.
The economies of Michigan and Maine have long been intertwined with that of Canada, covering everything from auto parts to lumber to fruit-picking equipment. Republicans may need to win closely contested Senate races in both states in order to maintain their majority in the chamber.
"Trump's desperate, 11th-hour attempt to save Susan Collins' political career is an admission that American voters are rejecting his toxic tariff policies. No one will forget how Trump raised prices on thousands of products American families need by slapping trade taxes on goods from around the world," Senator Ron Wyden, the top Democrat on the Senate Finance Committee, said in a statement on Friday.
Trump's threat in September to block Canadian jet maker Bombardier (BBDb.TO), from the US market became a political issue in Kansas, where the company employs 1,500 workers in Wichita. Trump dropped the threatened ban this week after calls from Kansas lawmakers including Republican Senator Roger Marshall, who also is locked in a tough reelection race.
Reporting by David Shepardson in Washington and Kanjyik Ghosh in Barcelona; Editing by Will Dunham
