OTTAWA – Control of both chambers of the U.S. Congress will shift to the Democrats next year, after Tuesday’s midterm elections saw a blue wave wash over even some of the most reliably Republican states.
Here are some ways the change in the distribution of power in Washington could affect Canada.
Tariffs
When the Democrats take control of the House of Representatives and the Senate in January, they may introduce legislation to rein in U.S. President Donald Trump’s tariffs on Canada, which were a factor in races in battleground states such as Maine and Michigan.
Even if a bill is introduced, Trump retains the power to block it by issuing a veto. The president’s veto can only be overridden by a two-thirds vote in both chambers of Congress.
During a live call with Politico late Tuesday, Trump he said he’s willing to work with the Democrats because he “has a right to veto everything. But (he) doesn’t want to sit there for two years vetoing everything.”
He later posted on social media a photo of a red baseball cap with the word “VETO” spelled out in bold white letters.
Americans casting votes in Michigan on Tuesday said they wanted to see the trade war end.
After trade talks between Canada and the U.S. collapsed in August, Trump slapped an array of Canadian goods with 50 per cent tariffs, banned imports of other Canadian products and signed an executive order to rename Lake Ontario as Lake America. Ottawa responded with retaliatory tariffs on specific American imports.
Trump again escalated trade tensions the following month by banning imports of certain Canadian goods, including motorcycles and some liquor and whey products.
Last month, Trump lifted some tariffs on Canadian exports while adding tariffs to dozens of new products, including Canadian garbage and sewage.
A U.S. food importer also filed a legal challenge of Trump’s use of a Depression-era trade statute — Section 338 of the Tariff Act of 1930 — to hit Canada with the heavy duties and trade embargoes.
Military actions
Hope is emerging among some Canadian and American politicians that the shift in power will lead to the end of the U.S. war on Iran.
Trump has admitted the Iran war affected the midterm elections by causing gas prices to surge, frustrating voters, and Vice-President JD Vance outright blamed the war for losing control of Congress.
But the Trump administration could still escalate the war before the Democrats take control of Congress next year.
“If I had to do it again, I’d have to do it again,” Trump told reporters Wednesday. “You can’t let Iran have a nuclear weapon.”
Senate Minority Leader Chuck Schumer said Wednesday the war in Iran “must end.” When asked how the Democrats would end the war, he said Congress can use “the power of the purse” to deter a president who launches a war without the consent of the American people.
The United States conducted defensive strikes on some Iranian targets in the Strait of Hormuz on the eve of the midterm elections, a U.S. official said Monday. Iranian state television reported that explosions were heard on Qeshm Island.
The Canada-U.S. relationship
Politicians on both sides of the border are looking at the midterm elections results as an opportunity to rebuild the Canada-U.S. relationship.
Formal trade talks with the U.S. were stalled when Canada walked away from negotiations in Washington in August. Prime Minister Mark Carney said on Tuesday official trade discussions with the United States have been taking place in recent days.
Canada-U.S. Trade Minister Dominic LeBlanc said Wednesday the Liberal government’s push to diversify trade won’t change direction in the midterms’ wake.
He also said recent talks with Trump’s administration have been productive and he looks forward to speaking more with his American counterparts in the coming days.
Beth Burke, CEO of the Canadian American Business Council, said in a media statement Wednesday that the newly elected and re-elected members of Congress will take office at a “critical moment for the U.S.-Canada relationship.”
Burke said reducing tariffs would lower costs for American and Canadian businesses and help bring down prices for consumers in both countries.
“With the elections behind us, both governments have a real opportunity to make progress on a trade agreement,” she said.
Former U.S. ambassador to Canada Bruce Heyman told CTV News on Tuesday that the U.S. must begin repairing its relationship with Canada.
“I am calling on this new Congress to begin immediately a formal reconciliation process with Canada,” he said. “That needs to begin almost the first day they come into office in January.”
Immigration policy
Trump has been roundly criticized at home and abroad for ramping up immigration raids after he returned to the White House in January 2025.
Since then, Canadians have reported facing uncomfortable questions from U.S. border officials and cases have emerged of Canadians being detained by U.S. immigration officials for minor infractions.
Global Affairs Canada said last month the number of arrest and detention cases involving Canadian citizens in the United States jumped 60 per cent in the last fiscal year compared to the year before.
In its annual report on consular cases, it recorded 577 cases of Canadians arrested or detained in the U.S. between April 2025 and March 2026, up from 361 a year prior.
Democrats likely will look to address immigration policies when they take over Congress. In January, Senate Democrats threatened to block legislation to fund the Department of Homeland Security and several other agencies after the killings of two protesters by federal agents in Minneapolis.
This report by The Canadian Press was first published Nov. 4, 2026.
— With files from Kelly Geraldine Malone, David Baxter, Kyle Duggan and The Associated Press
