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Business

Trump’s own trade chief downplays the Canada tariffs he’s escalating: ‘We don’t actually expect a huge impact’

Fortune ·
Trump’s own trade chief downplays the Canada tariffs he’s escalating: ‘We don’t actually expect a huge impact’

President Donald Trump’s trade war with Canada is escalating as the midterm elections approach, threatening Republican efforts to address voters’ economic concerns in a year when control of the U.S.

Senate hinges on states along the border between the United States and its northern neighbor.

The dispute flared over the weekend after negotiations broke down, leading Trump to raise tariffs on $20 billion in Canadian imports.

Canada plans to announce tariffs of its own on Tuesday, and the spiraling conflict could lead to higher prices and scrambled supply chains for Americans already aggravated at the president’s management of the economy.

Republican Sen.

Susan Collins of Maine, one of Democrats’ top targets this year, warned that fallout from Trump’s approach would hurt U.S. businesses and consumers.

“Imposing new tariffs on Canada is a mistake,” Collins said while campaigning Monday, and she mentioned lobsters, blueberries, lumber and other Maine products that end up in Canadian markets.

The issue also puts pressure on Republicans in Michigan, Ohio and Alaska, states where Canada is an important trading partner.

Many Democrats seem eager to capitalize on the matter as they try to regain the Senate majority, despite the party’s own history with protectionist sentiments.

“Trump is escalating a trade war with Canada for his own vanity,” Michigan’s Democratic nominee Abdul El-Sayed said on social media, adding that his Republican opponent, former Rep.

Mike Rogers, is a “rubber stamp” for such policies.

A third of the state’s exports go north of the border.

Marc Short, a top adviser to then-Vice President Mike Pence during the first Trump presidency, said the issue is a political trap for Republicans.

“It’s hard, obviously, because you don’t want to incur the wrath of the president,” he said.

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