The U.S. House voted 219–211 to repeal President Donald Trump's tariffs on Canadian goods, indicating increasing opposition even within the Republican Party, despite the low chances of passing in the Senate and the possibility of a veto.
This development heats up the debate on trade and the cost of living as the U.S. enters the midterm election season, and could impact the macro market sentiment that cryptocurrency investors closely monitor, particularly inflation expectations and policy risks.
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The U.S. House passed the resolution to repeal tariffs with Canada by a vote of 219–211, with 6 Republican lawmakers voting with the Democrats.
Trump warns he will "punish" Republican lawmakers who oppose tariffs in the election.
Tariffs also face legal challenges as the U.S. Supreme Court considers the lawsuit regarding the president's authority to impose tariffs.
The U.S. House voted to cancel Trump's tariffs on Canadian goods.
The U.S. House voted 219–211 to repeal President Donald Trump's tariffs on Canadian goods, with 6 Republican lawmakers siding with the Democrats in a rare bipartisan move.
The vote is seen as a signal of the level of dissent within the Republican Party over trade policy, even as the measure is viewed as unlikely to go far in the Senate and likely facing a presidential veto.
During his second term, Trump imposed multiple tariffs on Canada. Last month, he even threatened to impose a 100% import tariff in response to a proposed trade agreement between Canada and China.
Trump threatens to impose a 100% tariff if Canada reaches an agreement with China.
Trump declares that if Canada signs an agreement with China, Canadian goods entering the U.S. will be "immediately" taxed 100%, emphasizing tariffs as a tool for trade pressure.
This statement was posted by Trump on Truth Social, clearly stating a hardline position with America's major trading partner and close ally.
"If Canada reaches an agreement with China, it will immediately be subject to a 100% tariff on all goods and products from Canada entering the United States."
– Donald Trump, posted on Truth Social
Democrats ramp up pressure as the midterm election season begins.
Democrats urge Republican lawmakers to vote against Trump ahead of the midterm elections, emphasizing the impact of tariffs on prices and living costs.
Democratic lawmaker Gregory Meeks (New York), who drafted the resolution, raises the issue of choosing between lowering costs for American families and keeping prices high out of "loyalty to one man."
"Today's vote is simple: Will you vote to lower the cost of living for American families or keep prices high out of loyalty to one man, Donald J. Trump?"
– Gregory Meeks, U.S. Representative, speaking on the House floor
The vote took place as the U.S. enters the midterm election season. The general election occurs in November after the primary election begins in March, and all House seats must be re-elected in the electoral unit.
Trump warns of "election consequences" for Republican lawmakers who oppose tariffs.
Trump states that any Republican lawmaker in the House or Senate voting against tariffs will "face serious consequences" in the election.
While the House is voting, Trump posted on Truth Social that Republican lawmakers should not be held accountable for undermining the economic interests and national security that he claims tariffs have brought.
Reference Trump’s post here: article on Truth Social.
He also accused Canada of "treating the U.S. poorly" and claimed that Canada has historically exploited the U.S. in trade, particularly regarding Northern border issues, while urging the Republican Party to maintain tariffs.
Reference Trump’s other post here: statement on Truth Social.
Six Republican lawmakers voting with the Democrats create a key difference.
With a narrow majority in the House, 6 Republican lawmakers—including Brian Fitzpatrick, Don Bacon, and Thomas Massie—voted with the Democrats, enough for the resolution to pass.
The vote took place after House Speaker Mike Johnson, an ally of Trump in Congress, reportedly made an unsuccessful move to prevent members from discussing tariffs right on the House floor.
Gregory Meeks argued that Trump has "weaponized tariffs" against allies and destabilized the global economy. He said these measures harm U.S.-Canada relations, push Canada closer to China, and raise domestic prices.
The argument that "tariffs are taxes" escalates economic debate.
Some lawmakers argue that tariffs impose a cost burden on American consumers and businesses, turning tariffs into a form of indirect taxation in the economy.
Representative Don Bacon (Nebraska), one of the 6 Republican lawmakers supporting the resolution, stated that tariffs are a "net negative" for the economy and are a significant tax that American consumers, producers, and farmers are paying.
Trump's tariffs face legal challenges in the U.S. Supreme Court.
The U.S. Supreme Court is expected to rule in the case challenging the president's authority to impose tariffs, putting this policy at additional legal risk.
In defending the import tariff policy, the White House argues that the tariffs are necessary to restore the U.S. manufacturing base and correct trade imbalances. However, many judges, including some with conservative leanings, have questioned this argument.
A group of states and many small businesses oppose the measure, arguing that the president has overstepped his authority in enforcing fees that are essentially taxes.
The Supreme Court often takes months to issue important rulings. Despite having a conservative majority of 6–3, many observers expect the case to be handled more quickly and seen as a significant first test of the Trump administration's efforts to expand executive power.
Frequently Asked Questions
How did the House vote on repealing tariffs with Canada?
The House voted 219–211 to repeal President Donald Trump's tariffs on Canadian goods, with 6 Republican lawmakers voting alongside the Democrats.
Why is the likelihood of this resolution becoming law rated low?
The content suggests that the measure has a "slim chance" in the Senate and likely faces a presidential veto, making it difficult to complete the legislative process.
What does Trump say about Republican lawmakers voting against tariffs?
Trump warns Republican lawmakers voting against tariffs will "face serious consequences" in the election and calls on his party to maintain tariffs.
Where are Trump's tariffs being challenged?
The lawsuit challenges the president's authority to impose tariffs. The U.S. Supreme Court is expected to rule on this dispute.