Canada Hits Back At Trump Tariffs As Trade War Threatens Key Midterm Battlegrounds

Canada slapped tariffs as high as 50% on about $20 billion of American goods Tuesday, escalating its trade fight with President Donald Trump and threatening exporters in states hosting critical midterm races.

Prime Minister Mark Carney’s government imposed tariffs ranging from 15% to 50% on C$27.6 billion, or about $20 billion, of U.S. goods after negotiations between Washington and Ottawa collapsed in August. The retaliation could hit Michigan and Ohio, where Canada is the largest foreign market for each state’s exports and competitive Senate races could help determine control of the upper chamber.

The tariffs took effect at 12:01 a.m. Tuesday and targeted products including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics, according to the Canadian government. Canada imposed the duties in response to U.S. tariffs on C$27.6 billion worth of Canadian goods that took effect August 22.

The trade fight comes less than two months before the Nov. 3 midterm elections, with Michigan and Ohio among nine Senate races that Reuters identified as competitive. Democrats need to gain four Republican-held seats to take control of the Senate.

Democrat Abdul El-Sayed is facing Republican Mike Rogers for Michigan’s open Senate seat after Democratic Sen. Gary Peters decided not to seek reelection. Polls show a close race, and nonpartisan analysts rate the contest a toss-up, according to Reuters.

Canada purchased $23.2 billion in Michigan goods in 2025, accounting for 39% of the state’s goods exports. Transportation equipment accounted for $23.8 billion of Michigan’s goods exports worldwide, tying the state’s auto industry to the trade fight.

Trump’s Canada tariffs also became an issue in the Michigan Senate campaign. El-Sayed attacked Rogers over his support for the president’s approach, while Rogers told the DCNF that he supports Trump’s use of tariffs but does not view them as a solution for every trade dispute.

“President Trump is right to put America First — and tariffs are necessary, but are not a one-size-fits-all solution,” Rogers told the DCNF.

“Michigan deserves a Senator who will work with President Trump to broker a trade deal with Canada that supports our farmers and gets the best deal for Michigan autoworkers and manufacturers,” Rogers added.