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| Trump Canada tariffs |
US House Challenges Trump’s Canada Tariffs
The US House of Representatives voted 219-211 to overturn former President Trump’s Canada tariffs. This resolution targets the national emergency Trump declared in February 2025. Meanwhile, six Republicans defied Trump’s threats, reflecting bipartisan concern over trade impacts. The House action marks a symbolic step but cannot override Trump’s expected veto.
Implications for North American Metal Markets
The US steel and aluminum sectors may experience increased supply from Canada if tariffs are lifted. Consequently, scrap metal prices, especially for ferrous alloys, could stabilize or decline. In contrast, domestic producers face competitive pressure from Canadian imports. Analysts note that tariff policy uncertainty affects investment decisions in US refineries and secondary metal markets.
Legal and Regulatory Outlook
Trump justified tariffs under the International Emergency Economic Powers Act (IEEPA). However, the Supreme Court is likely to rule on the legality of this action soon. As a result, investors and metal traders remain cautious. Regulatory clarity could reshape US trade policy, influencing scrap and primary metal flows between Canada and the US.
ScrapInsight Commentary
The House vote signals potential normalization of North American metal trade. If tariffs are removed, scrap steel flows from Canada could rise, exerting downward pressure on US prices. Long-term, regulatory clarity may enhance investment and circular economy efficiency in the metal sector.
