U.S. midterm results could reshape Trump's Canada trade strategy

Democrats swept the U.S. midterm elections Tuesday, taking control of both the Senate and the House of Representatives in a major rebuke of President Donald Trump, who retains veto power and has threatened to use it. The results could affect ongoing Canada-U.S. trade negotiations. Trade talks between Canada and the U.S. remain unresolved despite reported progress, with Prime Minister Mark Carney saying talks have intensified and Canada's "red lines" have been taken off the table. U.S. Ambassador Pete Hoekstra reportedly warned Ottawa could be blamed if key races went against Republicans, with Maine and Michigan both flipping to Democrats. The economic impact of Trump's tariffs on Canada became a top midterm issue, with analysts saying Republicans need to rethink the trade war. The federal government will table its budget Thursday, focused on diversifying trade away from the U.S.