After the midterm elections, Democrats plan to challenge President Donald Trump’s tariff policy through legislation and investigations in the new Congress. Tariffs on Canadian goods could be their first target, but Senate rules and the threat of a presidential veto mean that even with a congressional majority, Democrats are unlikely to repeal the duties quickly on their own.
Democrats have linked tariffs to rising living costs and made them part of their election message. They plan to introduce a package of bills during the new Congress’s first 100 hours and investigate how tariff exemptions are approved. The effort could add legal and political pressure on the administration’s trade policy.
Canada tariffs emerge as a first legislative target
Abdul El-Sayed, a Michigan Democrat and senator-elect, said ending Trump’s trade conflict with Canada was something Democrats “must do right away.” House Democratic Leader Hakeem Jeffries has also made tariff repeal a priority. He has called for Congress to regain authority over tariffs, arguing that Trump’s duties are raising costs for Americans. If elected speaker of the House, Jeffries could bring related legislation to the floor.
Oregon Democratic Senator Ron Wyden, who is expected to become chairman of the Senate Finance Committee, said Democrats would continue to press for Congress to have the final say on tariffs. He described repealing the Canada duties as an obvious priority, saying they raise prices and affect communities on both sides of the border. Democrats may also seek to limit a future president’s ability to expand tariffs unilaterally.
Democrats pursue exemption inquiry alongside lawsuits
On October 28, Representative Jamie Raskin of Maryland, the top Democrat on the House Judiciary Committee, asked Trump to provide records related to tariff exemptions. Raskin questioned whether the exemption process had been used to favor particular industries, noting that business leaders from some of the companies involved had given gifts to the president. The inquiry continues Democrats’ campaign-season criticism of tariff costs and alleged favoritism.
The administration’s tariff policy is also facing multiple lawsuits. A case filed on October 20 challenges Trump’s use of a Depression-era law to impose 50% tariffs on a range of Canadian goods. Another lawsuit alleges the government is seeking to revive the so-called “Liberation Day” tariffs. The Supreme Court ruled those tariffs unlawful in February, after which the government was ordered to refund $166 billion collected under the policy.
The Constitution gives Congress the power to tax, though lawmakers have historically delegated some authority to the executive branch. Democrats argue Trump has taken tariff powers too far and plan to push for Congress to reclaim a greater role in trade decisions.
Senate rules and veto power constrain repeal effort
Democrats won a significant victory in the elections but remain short of the 60 Senate votes generally needed to overcome a filibuster. Even if a bill passes Congress, Trump could veto it. Overriding a veto requires two-thirds support in both chambers, meaning Democrats would need Republican votes.
Even without a path to enactment, Democrats could force votes to make tariffs a political issue ahead of the 2028 election. Kit Johnson, a senior tax manager with BDO’s customs and international trade practice, said Congress could also attach provisions to must-pass legislation or negotiate with the administration.
Trump has said he would use his veto to bring Democrats back to the negotiating table, while maintaining a hard line on tariffs after the election. In a phone interview with CNBC reporter Eamon Javers, Trump said that repealing the duties would bring work to a halt at the 3,000 factories currently under construction. He has described tariffs as a negotiating tool and a source of government revenue, and said Americans would not bear their cost.
Tariff costs and revenue remain contested
U.S. importers pay tariffs. The Tax Foundation estimates Trump’s tariff policies will add $820 to the average U.S. household’s tax burden in 2026. The Penn Wharton Budget Model estimates that tariffs generated about $300 billion from January 2025 through July 2026—well below the roughly $1.2 trillion needed to fund Trump’s pre-election pledge of a $5,000 “dividend” for every American adult.
About $138 billion has been refunded following the Supreme Court’s February ruling, while nearly $20 billion remains to be repaid. In a CNBC voter poll, 65% of respondents on November 3 said tariffs were hurting the U.S. economy, while 22% said they were helping it.
It remains unclear whether Republicans will back Democratic efforts to roll back the duties. Some Republicans opposed tariffs during the campaign and face pressure from voters who connect inflation with both tariffs and the war in Iran. As the party reassesses its position ahead of the 2028 election, whether lawmakers who once supported free trade continue to back Trump’s protectionist policy could shape the prospects for changes to tariffs.