Canada hit back at Trump tariffs. Now the U.S. alleges possible election interference.

The U.S. Embassy in Canada accused Canadian leaders of "openly" describing plans to "influence American politics," doubling down on Ambassador Pete Hoekstra's claims of potential election interference.Why it matters: The accusation further deteriorates Washington's relationship with its northern neighbor under President Trump's costly trade war that's put political pressure on Republicans.Canada targeted its retaliatory tariffs on politically salient states and products ahead of the U.S. midterms.Driving the news: The embassy cited Canada's targeted tariffs as part of the influence accusations laid out in a Wednesday fact sheet. It cited remarks from Industry Minister Mélanie Joly, including an August press conference where she said Canada was "targeting products that will target states in the U.S."She added, "we're being wise and strategic to put political pressure." Joly has echoed that message throughout the trade tensions.The fact sheet also cited Joly's meeting with Democrats. She recently huddled with Illinois Gov. JB Pritzker.What they're saying: Asked about the accusations during a news conference, Prime Minister Mark Carney said "all of our actions are in the interest of …

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