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Canadian Aluminum Industry Sees Hope for Tariff Relief After U.S. Midterm Elections
Democratic gains could give Ottawa a brief opening to restart tariff talks before new lawmakers take office, analysts said.
On Tuesday, Democratic midterm victories suggested potential shifts in US trade policy toward Canada, reflecting voter frustration with ongoing tariff disputes that have strained the bilateral economic relationship.
Trade talks collapsed in August, prompting President Donald Trump's administration to impose 50 per cent tariffs on $20bn worth of Canadian goods, leading Canada to retaliate with equivalent measures.
Voters in Michigan and Maine expressed clear frustration with existing trade policies, contributing to Democratic wins that Canadian industry leaders hope will create momentum for agreements.
Aluminum Association president Jean Simard said he is "far more optimistic than I've ever been," contrasting with US-Canada Trade Minister Dominic LeBlanc's caution that results won't change the short term.
Canada has a narrow window until the new year to finalize a deal before the new Congress is seated and potential investigations into the administration distract from trade negotiations.
It's a sweep in the mid-term election that weakens US President Donald Trump, but don't think he's synonymous with housekeeping in the plethora of customs duties targeting Canada. The White House tenant still has many tools in his trunk.