There are presently several layers of tariffs on Canada, notably on sectors like autos, metal, aluminium and forestry.
After commerce talks between Ottawa and Washington collapsed in August, the Trump administration imposed an extra 50% tariff on $20bn (£15bn) value of numerous Canadian items, from dairy to cosmetics and furnishings.
The US also declared a whole import ban on bikes, whey protein and alcohol.
Canada retaliated by slapping the US with its own 50% “dollar-for-dollar” tariffs. Most provinces have also banned the sale of US alcohol in retaliation.
Trump had also beforehand threatened to escalate the commerce struggle with Canada further by raising tariffs on sectors, including auto manufacturing, as of 1 January.
There were indicators that his administration had become more delicate to the optics of its tariffs on Canada in the run up to the election.
Just a few days before the vote, Trump instructed reporters that a commerce deal is “very close” after talking with Prime Minister Mark Carney.
Speaking to reporters on Tuesday night, Carney said of US negotiators that “they’re asking less and they’re offering more” in latest discussions.
On Wednesday, US-Canada Trade Minister Dominic LeBlanc said the midterm outcomes won’t change anything in the short time period, and dismissed hypothesis over what the new Congress might do when they’re seated in the new yr as “an interesting discussion at a faculty club luncheon”.
“Our approach will not change and we don’t intend to speculate on the approach being taken by the Americans,” he said.
Trump may really feel more stress to signal a deal with Canada now that American voters have clearly communicated their frustration, said Colin Robertson, a former Canadian diplomat and a fellow at the Canadian Global Affairs Institute.
“Will this change Trump’s mind? It might, because he suffered such a beating at the polls.”
But he added it stays to be seen how Trump will react from the bruising midterm loss.
Canada has an ultimate window between now and January – when the new Democratic lawmakers are sworn in – to finalise a deal, Robertson famous.
After that, Trump is probably to be distracted by investigations launched by Democrats into Trump’s household and funds and some members of his administration, Robertson said.
US commerce consultant Jamieson Greer also said earlier this yr that he had ambitions to have interim offers in place with Canada and Mexico around the North American free commerce deal, identified as the USMCA in the US and CUSMA in Canada, before the finish of the yr.
And while Carney struck a more optimistic tone in latest days on the present state of Canada-US commerce talks, he also instructed Politico last month that he was ready to wait for a new American president if essential to attain a deal with the US.
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