There are currently several layers of tariffs on Canada, notably on sectors like autos, steel, aluminium and forestry.

After trade talks between Ottawa and Washington collapsed in August, the Trump administration imposed an additional 50% tariff on $20bn (£15bn) worth of various Canadian goods, from dairy to cosmetics and furniture.

The US also declared a total import ban on motorcycles, whey protein and alcohol.

Canada retaliated by slapping the US with its own 50% "dollar-for-dollar" tariffs. Most provinces have also banned the sale of US alcohol in retaliation.

Trump had also previously threatened to escalate the trade war with Canada further by ⁠raising tariffs on sectors, including auto manufacturing, as of 1 January.

There were signs that his administration had become more sensitive to the optics of its tariffs on Canada in the run up to the election.

Just a few days before the vote, Trump told reporters that a trade deal is "very close" after speaking with Prime Minister Mark Carney.

Speaking to reporters on Tuesday evening, Carney said of US negotiators that "they're asking less and they're offering more" in recent discussions.

On Wednesday, US-Canada Trade Minister Dominic LeBlanc said the midterm results won't change anything in the short term, and dismissed speculation over what the new Congress might do when they're seated in the new year as "an interesting discussion at a faculty club luncheon".

"Our approach will not change and we don't intend to speculate on the approach being taken by the Americans," he said.

Pierre Poilievre, leader of Canada's Conservatives, said on Wednesday that "nobody controls Donald Trump".

But he said that midterms results show Canada has "massive leverage" given that the tariffs are broadly unpopular.

"We've got to use that goodwill to pressure for tariff-free trade," he said.