US midterm win for Democrats raises Canadian hopes of better trade terms
The Democratic win in US congressional midterm elections is being seen in Canada as a signal against President Donald Trump's tariffs. No immediate tariff relief is expected, but Ottawa hopes for a stronger position in trade talks.
Democrats won the US congressional midterm elections held on Tuesday, a result many in Canada read as partly a rejection by American voters of President Donald Trump's tariffs on close trade allies. Ontario Premier Doug Ford called it "a victory for Canada" and said he was "doing cartwheels down the street".
The outcome is unlikely to bring quick relief from the tariffs, but there is hope that the shifting politics could create a better environment for Ottawa now that on-again, off-again trade talks have resumed.
Tariffs on the campaign trail
Voters named affordability as a main concern. A September survey by the Cato Institute found about 75% believe tariffs have raised prices. Tariffs played a major role in Maine and Michigan. In Maine, Republican Senator Susan Collins won the removal of some duties affecting her state but lost to Democrat Troy Jackson. In Michigan, whose auto industry is closely tied to Canada's, Democrat Abdul El-Sayed beat Republican Mike Rogers. In Ohio, Democrat Sherrod Brown defeated Republican Jon Husted and pledged to remove the tariffs.
What may change
Most of the tariffs were imposed by executive order without congressional approval, and Trump pointed to his veto power on election night. Some Democrats have also backed certain tariffs in the past to protect American manufacturing jobs. US-Canada Trade Minister Dominic LeBlanc said nothing would change in the short term.
After talks collapsed in August, the US added a 50% tariff on $20bn worth of Canadian goods, and Canada responded with its own tariffs. Colin Robertson, a former Canadian diplomat, said the period before new lawmakers are sworn in in January offers a good window to finalise a deal.
