Canada Sees Opening to Ease U.S. Tariffs After Trump’s Midterm Defeat as Democrats Take Control of Congress

Canadian Prime Minister Mark Carney has welcomed a new push to roll back President Donald Trump’s tariffs following Republican losses in the U.S. midterm elections, raising hopes of relief for Canada’s lumber, steel, aluminum and automotive industries.

“We welcome any moves to restore a free trading arrangement between Canada and the United States,” Carney told reporters on November 6, arguing that freer trade would lower costs for American families and benefit workers on both sides of the border.

Democrats won control of both chambers of Congress in the November 3 elections and have signaled plans to challenge Trump’s tariffs. But the new Congress will not take office until January, and Trump could veto legislation to repeal the duties. Overriding a veto would require substantial Republican support.

The two countries have resumed discussions after trade negotiations collapsed in August over U.S. demands Ottawa said threatened Canadian sovereignty and cultural protections. American tariffs of up to 50% continue to weigh on key Canadian industries, prompting retaliatory measures from Ottawa.

Canada-U.S. Trade Minister Dominic LeBlanc said the election results would not change Ottawa’s negotiating approach. Carney has also maintained that Canada will seek an agreement that protects its economic interests rather than accept unfavorable terms.

Alongside those negotiations, Ottawa is pursuing a longer-term strategy to reduce its dependence on the American market. The government aims to double Canadian exports to destinations outside the United States over the next decade, expanding commercial ties with Europe, Asia and other trading partners.