Canada weighs effects of midterms on trade deal with U.S.

Donald Trump was rebuked by tariff-weary voters in midterm elections, but one of the U.S. president’s main targets — Canada — still faces a dilemma about what to do next. The trade war became a problem for Republicans in northern battleground states and ultimately became one of a number of Trump policies, alongside the Iran war, that voters blamed for making their lives less affordable. Late in the election campaign, Trump said several times that he expected to have a deal with Canada soon to reduce trade frictions. He even changed some of his tariffs against Canadian goods to help Maine Sen. Susan Collins with her re-election bid. And the Republican candidate for a Senate seat in Michigan, Mike Rogers, publicly came out against the White House’s trade policy against Canada. But Collins and Rogers both went down to defeat anyway. With Democrats set to take control of the House and Senate, Trump’s ability to pass laws and appointments will be constrained. But he can continue to sidestep Congress and issue executive orders mandating tariffs and product bans — exactly as he has done so far in his second term. “Republicans were already under pressure to settle with Canada, and that pressure just got stronger,” said Brian Clow, who advised former Prime Minister Justin Trudeau on U.S. trade. But the election outcome leaves Prime Minister Mark Carney with a tough call, he added. “Does Ottawa take a deal now that eases the pain but locks in some tariffs? Or bet on a Democratic Congress to rein Trump in?” Image Canada…

This story was originally published by Transport Topics. Read the full story at Transport Topics →