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.
Trump may feel more pressure to sign a deal with Canada now that American voters have clearly communicated their frustration, said Colin Robertson, a former Canadian diplomat and a fellow at the Canadian Global Affairs Institute.
“Will this change Trump’s mind? It might, because he suffered such a beating at the polls.”
But he added it remains to be seen how Trump will react from the bruising midterm loss.
Canada has an ideal window between now and January – when the new Democratic lawmakers are sworn in – to finalise a deal, Robertson noted.
After that, Trump is likely to be distracted by investigations launched by Democrats into Trump’s family and finances and some members of his administration, Robertson said.
US trade representative Jamieson Greer also said earlier this year that he had ambitions to have interim deals in place with Canada and Mexico around the North American free trade deal, known as the USMCA in the US and CUSMA in Canada, before the end of the year.
And while Carney struck a more optimistic tone in recent days on the current state of Canada-US trade talks, he also told Politico last month that he was prepared to wait for a new American president if necessary to reach a deal with the US.