It was the midterm result that many in Canada had hoped for - a Democratic sweep that was in part a repudiation by American voters of Donald Trump's tariff on close trade allies. "I was doing cartwheels down the street," said Ontario Premier Doug Ford on Wednesday morning, calling it "a victory for Canada". Tuesday night's result is unlikely to grant Canada relief from those tariffs any time soon, but there is anticipation that the political shifts could create a more favourable environment for Ottawa to get the best deal now that on-again-off-again trade talks are back on.
US voters cited affordability as a main concern heading into the midterms and a survey by the Cato Institute in September, external suggested that about 75% believe the tariffs have raised prices. In states like Maine and Michigan, tariffs played a significant role in the hard-fought races. In Maine, incumbent Republican Senator Susan Collins clashed with the White House over tariffs.
She successfully lobbied to have some duties that directly affected the state removed, including on road salt, refrigeration equipment and seaweed, but in the end lost to Democrat Troy Jackson. A similar story played out in Michigan, where state's the automobile manufacturing industry is deeply intertwined with Canada's - and where Democratic candidate Abdul El-Sayed defeated Republican Mike Rogers. Five reasons why Republicans lost so badly The fight to save Canadian town threatened by Trump's tariffs Trump's 25% tariffs on non-US made cars and trucks have led to layoffs in the province of Ontario, and have contributed to thousands of dollars in additional household costs for Michiganders, according to an analysis by the US-based National Taxpayers Union Foundation, external.
Like Collins, Rogers sought to distance himself from Trump's tariffs, declaring in a TV ad last month that "Canada is not our enemy". El-Sayed, meanwhile, bluntly assessed the tariffs as "dumb" and blamed them directly for driving up costs. In Ohio, Senator-elect Sherrod Brown, who defeated Republican Jon Husted, called the levies a "disaster" and vowed to slash costs for voters by getting rid of them, external.
Democratic leaders like Hakeem Jeffries and Chuck Schumer, now newly empowered, have both pushed to rein in the tariffs on Canada in recent months. Still, Democratic control of Congress might not do much to move the needle on tariffs. Trump's levies have been largely enacted using executive orders without approval from Congress.
And speaking to Fox News on Tuesday night, Trump touted his "ultimate power" of veto to shut down bills passed by Congress that he does not like. Some Democratic lawmakers have also supported certain tariffs in the past as a way to protect American manufacturing jobs, and could back keeping some in place. There are currently several layers of tariffs on Canada, notably on sectors like autos, steel, aluminium and forestry.
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