Carney's Double Move Against Trump? Backs Democrats, Strengthens China Trade Ties

Canadian Prime Minister Mark Carney has welcomed a push by US Democrats to repeal President Donald Trump's tariffs on Canadian goods following their sweeping midterm victory, saying restoring free trade would benefit American families and workers.

Speaking to reporters in Winnipeg on Friday, Carney said eliminating the tariffs would help address affordability concerns in the United States while creating better-paying jobs and economic stability.

"We welcome any moves to restore a free trading arrangement between Canada and the United States, which is in the interests of American families struggling with affordability," Carney said.

"We will continue to work with the Americans to get a deal that works for Canada," he added.

The Democratic victory has presented Ottawa with a dilemma: accept a deal that reduces some US tariffs while retaining others or hold out for a complete restoration of free trade.

Democratic Senator Ron Wyden, expected to chair the Senate Finance Committee when the new Congress convenes in January, has identified Trump's tariffs on Canada as an early target for repeal. Michigan Senator-elect Abdul El-Sayed has also expressed willingness to work with Trump to end what he called "these stupid tariffs with Canada".

Senate Democratic leader Chuck Schumer introduced legislation in September seeking to repeal the duties. However, Carney said he had not discussed the proposal with Wyden or other Democrats. Trump could veto such legislation, requiring substantial Republican support to override it.

Trump's trade war has included 50 per cent tariffs on billions of dollars worth of Canadian goods, prompting retaliatory duties from Ottawa. He has also repeatedly suggested Canada should become the 51st US state and pushed for Canadian automobile production to move to the United States. His threat of additional tariffs on Canadian automobiles from January has increased pressure on Canada's auto industry.

Meanwhile, Carney has been strengthening trade ties with China. During his January visit to Beijing, he met Chinese President Xi Jinping and announced a strategic partnership covering trade, energy and agriculture. The arrangement included provisions for up to 49,000 Chinese electric vehicles annually at a 6.1 per cent tariff rate, while China agreed to reduce tariffs on Canadian agricultural products, including canola. However, Carney has clarified that Canada is not seeking a comprehensive free trade agreement with China.