Canada targets US states with retaliatory tariffs ahead of midterms

Canada plans retaliatory tariffs targeting US states to exert political pressure, particularly ahead of the November midterm elections. Industry Minister Mélanie Joly stated the strategy aims to impact products from specific states, though she did not name them. US media suggest Maine could be affected by tariffs on fish and seafood, targeting Republican Senator Susan Collins, who faces re-election and has warned against tariffs. The midterms will decide control of Congress, where Republicans hold slim majorities. The trade dispute escalated after talks failed, with the US imposing 50% tariffs on $20 billion of Canadian goods. Canada announced matching tariffs on $17.08 billion of US imports, including steel, aluminum, and appliances. Canada could also tax electricity exports, as it supplies 80% of US power imports.