House Rejects Trump’s Canada Tariffs in Rare Republican Rebuke as Markets Slide

preCharge News POLITICS — In a rare public break with President Donald Trump, the Republican-led U.S. House of Representatives on Wednesday passed a resolution rejecting his tariffs against Canada, a cornerstone of his economic agenda.

Several Republicans joined Democrats in supporting the measure, signaling unease within the party over the president’s trade strategy.

Trump responded with a warning on Truth Social, saying that GOP lawmakers who defy him would “seriously suffer the consequences come Election time, and that includes Primaries.”

Tariff Resolution Heads to Senate, Faces Likely Veto

Symbolic Challenge to Presidential Trade Authority

With House passage secured, the resolution now moves to the Senate, which approved similar measures last year. However, the effort is widely viewed as symbolic, as Trump retains the power to veto the legislation — and is expected to do so.

The vote underscores ongoing tensions within the Republican Party over tariffs, particularly as businesses warn of higher costs and strained cross-border trade with one of America’s largest trading partners.

Stocks Retreat After Jobs Report and AI Selloff

Dow Snaps Three-Day Winning Streak

U.S. stocks declined Wednesday, pressured by renewed concerns about artificial intelligence valuations and a stronger-than-expected January jobs report.

The Dow Jones Industrial Average snapped a three-day winning streak as investors reassessed the outlook for interest rate cuts.

January Payrolls Beat Expectations — But Raise Questions

Nonfarm Payrolls Grow by 130,000

The Bureau of Labor Statistics reported that 130,000 jobs were added in January, significantly above the 55,000 gain forecast by economists surveyed by Dow Jones.

The report, delayed due to a partial government shutdown that ended Feb. 3, also showed a sharp increase from December’s revised 48,000 gain.

Revisions Paint a Weaker Picture for 2025

Despite the headline beat, underlying data revealed weakness. All months in 2025 saw negative revisions, and revised figures show total job growth last year amounted to just 15,000.

Federal Reserve Governor Christopher Waller previously described the year’s job growth as close to “Zero. Zip. Nada.”

Job gains remained concentrated in health care-related sectors, raising concerns about whether displaced workers in other industries can find employment.

Stronger Jobs Data Clouds Fed Rate Cut Outlook

Solid Labor Market Reduces Odds of Rate Cuts

Stronger-than-expected hiring reduces the urgency for the Federal Reserve to lower interest rates, dampening investor hopes for near-term monetary easing.

Markets have been closely watching labor data for signs of cooling that would justify rate cuts later this year.

AI Fears Weigh on Tech Stocks

Software Shares Lead Market Losses

Technology stocks also faced renewed pressure amid ongoing concerns about AI-driven valuations.

Shares of ServiceNow and Salesforce fell 6% and 5%, respectively, leading declines in the software sector.

Investors have grown increasingly cautious about elevated valuations tied to artificial intelligence investments.

Global Markets Focus on Earnings and Economic Data

Europe and Asia Watch Key Reports

Overseas, investors are preparing for major corporate earnings releases from Siemens, L’Oreal, and Mercedes-Benz Group in Europe, while Nissan Motor is set to report third-quarter results in Japan.

In the U.K., markets are also awaiting fourth-quarter GDP and industrial production data, which could provide further clues about economic momentum.