Canada seeks tariff easing following US election upheaval

Canada will press for relief from American tariffs after President Donald Trump’s party suffered sweeping midterm election defeats, Foreign Affairs Minister Anita Anand said on Tuesday, identifying an opportunity to improve strained trade relations.

Anand said Ottawa hoped the changed political climate in Washington would help deliver progress on duties affecting Canadian lumber, steel, aluminium and automobiles. The measures have damaged major industries and cost workers their jobs, she said during an interview while attending Group of Seven meetings in France.

“We’re talking about just a week or so out of these elections, and Canada very much hopes that we will have progress on the trade front,” Anand said. She warned that the affected sectors were under considerable pressure, with employment losses adding urgency to efforts to resolve the dispute.

The November 3 elections handed Democrats control of both chambers of Congress, ending Republican legislative dominance and reflecting widespread public dissatisfaction over living costs. Tariffs were among the economic policies facing criticism, although voters also cited inflation, the conflict with Iran and other domestic concerns.

The new Congress is due to convene in early January 2027, meaning the election outcome does not itself alter the tariffs now applied at the border. Anand did not announce a new agreement, a timetable for negotiations or any commitment from the Trump administration to reduce tariffs. The president retains substantial authority over trade policy despite his party’s congressional losses, making any immediate change dependent on decisions in Washington.

Canada has responded to American duties with countermeasures while seeking alternative markets for its products. Its government imposed additional retaliatory tariffs in September after Washington introduced duties on Canadian goods, extending the dispute across industrial and consumer sectors.

The Canadian finance department said the September measures applied to US imports worth C$27.6 billion, with tariff rates of 15, 25 and 50 per cent on selected products. Ottawa said those steps were intended to match the American restrictions and protect industries affected by the trade confrontation.

For manufacturers, the impact reaches beyond finished products. Steel and aluminium feed into construction, machinery and transport equipment, while automotive supply chains involve components moving across the border during production. Additional duties can therefore affect costs for companies and customers on both sides.

Canada has also adjusted domestic relief arrangements for businesses facing higher import expenses. Measures announced on Monday extended certain exemptions from Canadian counter-tariffs until June 2028 and widened eligibility for specified goods used in mining, energy extraction and public education.

The government said it would grant targeted relief where essential imported products were in short supply or companies faced exceptional contractual obligations. Other exemptions will be withdrawn for goods with Canadian production capacity, with phased implementation intended to give businesses time to adapt.

Anand’s remarks came as she joined G7 foreign ministers for discussions with counterparts including US Secretary of State Marco Rubio. Canada’s foreign ministry said the meetings would address international security, Ukraine, artificial intelligence and regional instability, with bilateral discussions also planned.

The minister linked Ottawa’s trade diplomacy to a broader effort to reduce its economic reliance on the United States. Canada has concluded more than 20 security, economic and defence agreements over the past year, she said, as it seeks stronger relationships with other major economies.

“This is the work that we are doing to double non-US trade over the next 10 years,” Anand said. She highlighted Canada’s trade links with fellow G7 members as a foundation for expanding opportunities outside its largest neighbouring market.

The European Union is among the partners involved in that effort. Anand identified critical minerals, energy, artificial intelligence, advanced technology and cloud computing as areas where Canada and European governments are seeking closer cooperation.

Trade discussions with Washington also sit alongside preparations for the review of the Canada-United States-Mexico Agreement. Canadian federal and provincial officials have identified reliable access to the American market, particularly for vehicles, metals and forest products, as a central concern.

The Canadian government has maintained that it remains willing to engage constructively with Washington and Mexico while preserving predictable trading conditions. That position leaves room for negotiations even as retaliatory measures remain in force.

At the Paris gathering, Anand was also scheduled to discuss Russia’s war in Ukraine, Haiti and security threats affecting North America and Europe, according to the foreign ministry’s programme.



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