Will the U.S. midterm results affect Trump's tariffs on Canada? Democrats think yes
Although Canada and the United States remain entrenched in their trade war positions, some Democratic politicians say a strong showing for their party in the upcoming U.S. midterm elections in November will make a difference in the fight.
"I think it'll send a message to the White House and to other Republicans that this type of tariff, especially with close friends, is just not something that Americans want," Arizona Sen. Ruben Gallego said in an interview on Rosemary Barton Live that aired Sunday morning.
"This is just a tax, right?" Gallego told host Rosemary Barton. "We are adding a tax on a lot of goods that are coming from Canada that are unnecessary."
As it stands, Republicans control the White House and both chambers of Congress. The party has given U.S. President Donald Trump wide latitude to impose his tariffs agenda, even if some politicians are quietly concerned that the escalation could impact their re-election chances.
Gallego argued that if Trump's tariffs are in the service of reindustrializing the U.S., it's not working and instead antagonizes close allies who have helped the country in tough times.
The U.S. senator also said he's very worried about his state's aerospace manufacturing sector, which relies on Canadian steel and aluminum that are currently subject to Trump's tariffs.
According to a report from TD Bank released last month, there has been a slight manufacturing rebound in the U.S., but "elevated energy costs, tariff-related input pressures, and tighter financial conditions are likely to limit the breadth and durability of the expansion."
"As a result, manufacturing should remain a modest contributor to growth, but the evidence does not yet point to a self-sustaining or economy-wide industrial resurgence," the report added.
Trump banning import of Canadian booze, motorcycles, other goods into U.S.
Maine Gov. Janet Mills told Barton in a separate interview that if the Democrats win both chambers, it will "throw a wrench in the works" for the president since Congress can "take back their power over taxation and tariffs."
That said, the legal mechanism Trump used to impose his latest round of tariffs is Section 338 of the Tariff Act of 1930 ( also known as the Smoot–Hawley Tariff Act) , which authorizes the president to impose duties if a country discriminates against U.S. commerce relative to other countries.
But unlike previous tools, like Trump's "Liberation Day" Section 122 tariffs, there are no checks and balances for Section 338 tariffs. Some members of Congress introduced a bill last month trying to repeal Section 338 entirely.
Still, Mills said that anti-Trump sentiment is building in the U.S. over the economy, suggesting political pressures could get the president to back down or motivate him to cut a deal.
"It's not good, and it's not heading in a good direction, and it's on his watch and because of his actions," she said.
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