(Yahoo! Finance) - President Trump is said to be considering exiting the North American trade pact, according to a report in Bloomberg.
Trump has asked his administration why he shouldn't withdraw from the agreement, which he signed during his first term in office. The development raises further questions about the deal's future and negotiations involving the US, Mexico, and Canada.
Meanwhile, the US House of Representatives will vote on Wednesday on whether to reject some of Trump's tariffs, after a last-ditch effort from House Speaker Mike Johnson failed to block them. The vote comes months ahead of the midterm elections — at a time when many Americans are concerned about the rising cost of living. Votes will start with a resolution to stop Trump's tariffs on Canada.
Meanwhile, there is confusion 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.
Trump and India's Prime Minister Narendra Modi agreed to a tariff deal earlier this month. Trump said the baseline US tariff rate on goods from India would drop to 18% from 25%. The US president also claimed that Modi had "agreed to stop buying Russian Oil," which would further lower the US's tariff rate on India. The White House confirmed that an additional 25% "secondary" tariff on India over its purchases of Russian oil would also be dropped.
Trump has in recent weeks leveled new tariff threats at Canada and Mexico, 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.
Trump’s tariffs face rebuke as Johnson fails to block votes
The US House of Representatives will vote on Wednesday on whether to reject some of President Trump's tariffs. The vote comes months ahead of the midterm elections, at a time when many Americans are concerned about the rising cost of living.
Today's vote will start with a resolution to stop Trump's tariffs on Canada, which currently include a 35% tariff on imported items such as steel, aluminum, and copper, as well as a 25% duty on non-US cars. The United States-Mexico-Canada Agreement (USMCA), the free trade agreement Trump has threatened to scrap, does exempt some of these goods.
The House vote will proceed despite Speaker Mike Johnson's attempt to block it.
Trump has there would be no extra cost to the American people. A report from the nonpartisan Tax Foundation has found that these tariffs will amount to an average tax increase per US household of $1,000 in 2025 and $1,300 in 2026.
Bloomberg News reports:
Johnson, one of Trump’s chief allies in Congress, has led a legislative blockade for months to insulate the tariffs, pushing procedural rules that effectively prevented his chamber from ending the president’s sweeping tariff authority. A fresh Johnson-backed measure would have extended that ban through the end of July.
Yet Democrats and a trio of Republicans rejected the attempt at another delay. The GOP defectors were Representatives Thomas Massie of Kentucky, who often splits from the president, California’s Kevin Kiley — who faces a tough reelection campaign — and Don Bacon, a retiring centrist from Omaha, Nebraska.
“Congress needs to be able to debate on tariffs,” Bacon posted on X after the the vote. “Tariffs have been a ‘net negative’ for the economy and are a significant tax that American consumers, manufacturers, and farmers are paying.”
House Democratic leaders informed lawmakers that the chamber will vote Wednesday on a resolution authored by Representative Gregory Meeks of New York to repeal Trump’s tariffs on Canada announced in February 2025.
