Canadian Industry Leaders Seek Trade Reset After U.S. Midterms
Canadian industry leaders and government officials are calling for a rollback of U.S. tariffs following a Democratic sweep of the U.S. Congress.
Canadian manufacturers and government officials are calling for a reset of trade relations following a Democratic sweep of the U.S. House of Representatives and Senate in the midterm elections. Industry leaders expressed optimism that the shift in congressional control will pressure Washington to roll back tariffs on steel and aluminum, which reached 50 percent under the administration of Donald Trump.
Since March 2025, these tariffs have severely impacted Canadian production. Major aluminum producers, including Rio Tinto, Alcoa, and Aluminerie Alouette, redirected approximately 800,000 tonnes of aluminum to Europe to avoid production cuts. While Prime Minister Mark Carney stated that trade talks are progressing, business leaders emphasize the need for a predictable agreement to ensure sector growth and address affordability concerns.
Despite the optimism, some analysts warn that an "America First" sentiment persists within both major U.S. political parties, suggesting that a full return to previous CUSMA terms may not be immediate. However, leaders from the aluminum and steel sectors maintain that the election results provide necessary momentum to restore free and fair trade.
