Midterm Elections: Will Democrats' Win End US-Canada Trade War?
US President Donald Trump has been imposing tariffs on Canadian goods for two years, causing anxiety among allies and leaving Canada isolated from the lucrative US market. With the midterm elections just weeks away, Ottawa is watching closely to see if a shift in power might rein in Trump's aggressive attitude towards Canada.
The minority Democratic Party hopes to win back control of Congress, which would allow them to pass legislation that could eliminate many of the White House's tariffs. However, this could lead to government deadlock, leaving trade and economy in limbo for the next two years.
Lawmakers have united against Trump's economic policies, but it remains to be seen how Democratic leadership plans to use their constitutional authority to negate the White House on trade. Even with a unified House and Senate armed with veto-proof legislation, the Trump administration has shown a willingness to flout laws and ignore court rulings.
Canada's economy is already suffering from the collateral damage of the trade war, and an epic battle between the two sides could leave Canadian steel and aluminum producers, as well as potash producers, among others, caught in the crossfire. The only weapon available to lawmakers may be their power of the purse, but it's unclear if Democratic leaders are prepared to take a more Machiavellian approach by starving the executive branch of appropriations.