Overview
- Democrats won control of both the U.S. House and Senate in Tuesday’s midterm elections, meaning they will be sworn in and take control of Congress in January.
- Canadian leaders say formal trade talks with President Trump’s administration have resumed and are showing progress, but U.S. duties remain in place and unchanged for now.
- The tariffs operate in two executive-based layers: longstanding Section 232 levies on steel, aluminum, autos and lumber and a separate 50% duty on selected Canadian goods enacted under a 1930 statute.
- Ottawa and several provinces say they will press ahead with diplomatic outreach and a trade‑diversification strategy while premiers plan direct engagement with U.S. governors and members of Congress.
- Canada’s fiscal room to blunt tariff pain is limited because the federal budget must cover multibillion-dollar commitments and a projected large deficit, which constrains near‑term spending options.