WASHINGTON, D.C. (RFD NEWS) — House lawmakers voted 219–211 to repeal President Donald Trump’s tariffs on Canada, with six Republicans joining most Democrats in support of the measure. The bill now heads to the Senate, which has passed a similar proposal, though neither effort currently holds a veto-proof majority.
The future of the President’s tariff plan now rests with the nation’s high court. While some have been worried tariffs would ignite inflation, Arlan Suderman at Stone-X says the projected spike never materialized.
“It ended up really more than a 2.5-to 3-percent inflation level, kind of as a one-off, and then an adjustment from that,” Suderman says. “And I think there’s a lack of realization that most countries charge large tariffs on us. When you look at what President Trump did, he said, ‘Okay, we’re going to put tariffs on you unless you negotiate yours down.’ And so many countries negotiated theirs down.”
Suderman says tariffs have had some positive impacts and notes markets are watching closely as the Supreme Court considers the issue.
“It has generated a considerable amount of income revenue, which is illustrated by the fact that the financial markets are worried right now,” Suderman explained. “If the Supreme Court rules against those reciprocal tariffs, it’s going to have an adverse effect on the treasury market, because we’re accustomed to that revenue, and if we lose that revenue, then we’re going to have to find new sources for it.”
Lawmakers are also watching the president’s trade policy. House Speaker Mike Johnson is asking lawmakers not to act until the Supreme Court issues an opinion.
“The President’s trade policies have been a great benefit to the country. We went through some statistics and how they’ve helped the economy. And I think the sentiment is that we allow a little bit more runway for this to be worked out.”
Others argue farmers cannot afford to wait. Val Dolcini, Syngenta North America’s U.S. Head of Sustainability and Government Affairs, says tariffs have been useful but notes barriers remain.
“I think that to the degree that tariffs can provide some much-needed revenue to our national treasury, that’s a good thing,” Dolcini said. “To the degree that it equals out some of the trade relationships where we’ve had imbalances and trade deficits over the years, that’s also a good thing. But today, American farmers want to be able to sell their crops overseas, and tariffs stand in the way of that.”
The Supreme Court is currently in winter recess for another week. There is no clear timeline for when a tariff decision will be handed down.
RealAg Radio host Shaun Haney joined us on Thursday’s Market Day Report to break down what the House vote means for farms in the near term, especially given expectations that the Senate is unlikely to take further action and that a presidential veto is almost certain, and if the move signals a broader shift in trade policy discussions.
In his interview with RFD NEWS, Haney says he believes the move is largely symbolic.
“You know, this resolution still faces resistance in the Senate — and even if it got through the Senate, which would even add a whole other level of drama to this — it’s certain to face a presidential veto,” Haney said. “But politically, I think it is significant. You know, this is one of the first times we’ve really seen a little bit of GOP division on tariffs, and of course, there were only 6 or 7, but the reality was some, and in history, it has been very difficult for Republicans to go against the president in votes like this. You know, there’s a lot of talk, but when it comes to the vote, people don’t really come through, and of course, Rep. Massie is one of the leaders in this regard. It does reveal some discomfort with executive overreach when it comes to tariffs and the U.S.'s largest trading partner, but symbolic, I think, is the best way to look at it.”
Haney says even with a veto, nothing changes for farmers. Anything included in the U.S.-Mexico-Canada Agreement (USMCA) is exempt from the tariffs. He adds that if the Supreme Court strikes down Trump’s tariffs, the administration will likely find other ways to implement them.
