Why Removing Trump’s Tariffs Will Be Difficult for the Democratic Congress
“We will put an end to Trump’s stupid tariffs that are driving up prices for Americans,” House Democratic leader Hakeem Jeffries promised as the party prepares to take control of Congress in January.
That legislative takeover sets up a high-stakes collision over trade policy during the final two years of Donald Trump’s second term. The contest for control of Congress represents, up to this point, the biggest political test of President Donald Trump’s second term. Democratic leaders plan to target the administration’s sweeping import taxes, but shifting federal trade policy will test party unity and require substantial Republican votes to override potential vetoes.
Alongside Jeffries, incoming Senate Finance Committee Chairman Ron Wyden vowed to reaffirm congressional authority over trade. Even some Republicans have broken ranks over the economic fallout. Texas Senator Ted Cruz recently lamented that tariffs have made everything too expensive.
Yet dismantling the duties faces steep procedural hurdles. Blake Harden, managing director of the Washington Council practice at EY, noted that the new majority will likely push for tariff reform, but warned that doing so is exceptionally difficult. Lawmakers disagree on which specific duties to scrap, and both parties increasingly view tariffs as a potent economic weapon. Trump also received new powers to impose tariffs through a bipartisan sanctions law against Russia, despite concerns from some Democrats and trade lawyers regarding the scope the administration might give them.
The political divide runs deep within both caucuses. When Democrats last held the reins during the Biden administration, officials opted to expand rather than dismantle Trump’s initial trade barriers to maintain pressure on China. Democratic Senator Sherrod Brown of Ohio, returning to the Senate after winning his seat in Tuesday's elections, has historically criticized certain White House trade policies while dealing with his state's historic manufacturing job losses tied to global trade. While both Republicans and Democrats disapprove of the current trade war with Canada, bipartisan support exists for a firm stance against China.
Passing legislation to reverse White House trade policy requires majorities capable of overcoming a presidential veto. A Bloomberg count on Thursday showed Democrats holding 54 seats in the Senate and 243 in the House. Overriding a veto would demand support from approximately 13 Republican senators and nearly 50 Republican representatives. Senate Democratic leader Charles Schumer told The New York Times that he expects solid Republican support for reducing import taxes, pointing to free-market advocates like activist Grover Norquist who argue allies would vote to override a veto.
Other analysts remain skeptical that lawmakers facing primary challengers will challenge Trump. Meanwhile, the administration continues building new trade barriers. Trump is preparing fresh tariffs targeting industrial overproduction that could affect imports from more than a dozen economies before the new Congress convenes. Investors celebrated the prospect of a divided government and bet on a more moderate trade policy, with shares of Japan’s Toyota Motor Corp. and South Korea’s Hyundai Motor Co. rising following the election results partly due to speculations that Democrats would roll back tariffs.
“The administration will continue to correct long-standing trade imbalances in a way that incentivizes companies to invest and produce in the United States and that protects American workers and their families,” the Office of the United States Trade Representative stated.