Chronic Trade Deficit is 'Toxic' to US Future, Says Peter Navarro

White House trade adviser Peter Navarro discusses President Trump's tariff policy following the House vote to end levies on Canadian imports.

Donald Trump’s tariff policies suffered their strongest political blow yet with the Republican-led US House passing legislation aimed at ending the president’s levies on Canadian imports.

Wednesday’s vote represents an increase in political pressure to change course on Trump’s signature economic policy just months before the midterm elections, including by forcing swing-district Republicans affected by the tariffs to weigh when or if to cross the president by voting against his agenda.

The vote also signals a growing anxiety over the White House’s economic agenda before elections that are expected to focus heavily on affordability. Democrats were quick to attack the Republicans who voted to protect the tariffs, blaming them for shielding policies that increase the cost of living for their voters.

While Trump is almost certain to veto any bill calling for a repeal of his tariff agenda, making it unlikely the measure will ever become law, defections from six Republicans alongside opposition from nearly all Democrats underscore his increasingly tenuous hold on the narrow House majority.

Republicans are fighting to maintain control of both the House and Senate this November, a job made more difficult by the president’s slipping approval in polls on the economy and immigration.

Trump has a personal interest in holding onto Republican majorities in Congress — it makes it easier for him to pass legislation he favors and would shield his administration from congressional investigations.

Democrats have outperformed expectations in a series of elections over the last several months, including the Miami mayoral race and the New Jersey and Virginia governor’s races. In recent weeks, a solid Republican Texas state Senate seat flipped blue in a 31-point swing toward Democrats.

The measure’s passage also comes as Trump privately weighs quitting the US-Mexico-Canada trade pact he signed during his first term, a decision that would worsen trade tensions in North America. About 80% of goods imported from Canada meet USMCA criteria and are exempted from tariffs.

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