President Trump plans to roll back some tariffs on metals, including on steel and aluminum goods, as he and his administration seek to battle an affordability crisis ahead of the midterm elections.
The move comes after he faced a rare rebuke over his tariff regime, as members of his own party crossed lines to vote to scrap Trump’s duties on Canada.
Six Republicans in the House of Representatives joined with nearly every Democrat to pass Joint Resolution 72, which seeks to terminate a national emergency that Trump declared last February imposing tariffs on Canada. That came even as Trump openly threatened lawmakers who crossed him, writing that Republicans who oppose tariffs “will seriously suffer the consequences come Election time.”
But Trump himself appears to be worried about the consequences, as The Financial Times reported that the current 50% tariffs on steel and aluminum could soon see carveouts in a similar manner to Trump’s reductions on certain food imports last year.
Trump has, however, kept up his threats in recent weeks, part of a recent blitz aimed at allies that rivals his bluster from early in his second term.
Trump threatened to hit Canada’s aircraft imports with a 50% tariff and said the US would also decertify all new jets from the likes of Bombardier (BDRBF), claiming Canada has used certification hurdles to effectively ban the sale of US Gulfstream jets. He also threatened to impose 100% tariffs on Canada over that nation’s trade deal with China.
Meanwhile, Mexico is facing the possibility of levies after Trump promised to impose new tariffs on countries providing oil to Cuba.
Also, confusion has emerged over the trade deal between the US and India after the White House adjusted language around agricultural goods. In the updated statement, the US has now removed a reference to pulses, a staple food in India.
Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered
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Trump plays risky game on tariffs as he unwinds metals duties to bolster approval
On Wednesday night, President Trump pressured House Republicans to support his tariffs, even though rising living costs have upset many voters.
While six Republicans voted against his current tariffs on Canadian goods, 210 others remained loyal to Trump. But experts say this could harm them in the upcoming midterm elections, as many voters remain concerned about rising prices.
Financial Times reports:
