The US House of Representatives rejected an attempt by Speaker Mike Johnson to stop votes on resolutions that would disapprove of President Donald Trump\u2019s tariffs, the Wall Street Journal reported on Tuesday. This could allow votes that challenge the tariff policy and enable Democrats to seek removal of US tariffs on Canada.<\/p>\n
The procedural step failed by 217 against and 214 in favour, with three Republicans joining 214 Democrats in opposition. In markets, the US Dollar Index (DXY) was near 96.65 at the time of writing, down 0.22% on the day.<\/p>\n
The political uncertainty surrounding US tariff policy suggests we should prepare for higher market volatility. The immediate drop in the US Dollar Index signals that markets see a weaker dollar if protectionist policies are rolled back. This new political dynamic is a clear signal to buy volatility through options.<\/p>\n
With a specific focus on Canada, we are watching the USD\/CAD pair closely, which has now broken below the 1.3400 support level it held through late 2025. This move could gain momentum as the possibility of removing tariffs increases. Derivative traders might consider buying call options on the Canadian dollar to position for further strength against the US dollar.<\/p>\n
This development is likely a net positive for US equities, especially for multinational companies burdened by trade restrictions. The CBOE Volatility Index (VIX) has already jumped from 14 to over 17 in the last day, showing an increase in the market’s expectation of future turbulence. Selling out-of-the-money put spreads on the S&P 500 could be a way to capitalize on potential market upside while defining risk.<\/p>\n
We remember from the trade disputes of 2018-2019 how sensitive markets were to tariff headlines, often rallying hard on any sign of de-escalation. That period taught us that political news can easily overpower economic data in the short term. We should expect this pattern to re-emerge, making it crucial to monitor legislative updates closely.<\/p>\n
Looking at recent data, U.S. exports to Canada had contracted by 4% year-over-year in the last quarter of 2025, a statistic largely blamed on trade frictions. A reversal of these policies would directly benefit key sectors like automotive and agriculture. This makes call options on specific sector ETFs a viable strategy for more targeted exposure.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" House rejects Mike Johnson\u2019s move, paving way for votes challenging Trump tariffs, potentially lifting Canada duties.<\/p>\n","protected":false},"author":62,"featured_media":16963,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-41563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/41563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=41563"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/41563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16963"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=41563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=41563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=41563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}