Democrats plan to use their new power in the next Congress to challenge President Donald Trump's tariffs. Leaders want to speed legislation to the House floor and prepare investigations, but the Senate filibuster and a possible veto stand in the way.
Democrats plan to go after Trump's tariffs as soon as the next Congress is sworn in, following their landslide victory in Tuesday's midterm elections. They are pursuing two tracks: legislation and investigations.
Two tracks against the tariffs
Rep. Hakeem Jeffries of New York, the Democratic minority leader who could be elected House speaker, has made ending the tariffs a top priority. If picked as speaker, he would speed legislation to the House floor that reasserts congressional authority over trade.
On the investigation side, Rep. Jamie Raskin of Maryland, the top Democrat on the House Judiciary Committee, asked Trump on Oct. 28 to hand over records related to tariff exemptions. Raskin alleges Trump has used the exemption power to cut favorable deals for certain industries.
The Wall Street Journal, citing Sen. Ron Wyden, reported Thursday that Democrats are eyeing the Canada trade war as their first target.
Courts and Senate rules complicate the effort
The tariffs already face legal pressure. The most recent lawsuit, filed Oct. 20, targets Trump's use of a Great Depression-era law to impose 50% tariffs on a range of Canadian goods. Separately, the Supreme Court struck down the near-global tariffs known as liberation day in late February, and the administration has been ordered to refund $166 billion.
Still, Democrats face hurdles. The party will still lack a 60-vote filibuster-proof majority in the Senate, and Trump is poised to lean heavily on his veto pen. Overriding a veto requires two-thirds majorities in both chambers.
Kit Johnson of BDO's customs and international trade group told CNBC that Congress might consider other solutions, such as adding riders on must-pass bills or negotiating with the administration.
Trump appears to rule out backing off
After the election, Trump told CNBC that if he took tariffs off, "Every single plant would stop building." He said 3,000 plants are under construction.
Public opinion runs against him. In the CNBC Voter Poll on Nov. 3, 65% of respondents said the duties have hurt the U.S. economy, while 22% said they helped.
A number of Republican lawmakers came out against the duties during the campaign, as opponents gained ground blaming inflation on the tariffs and the Iran war. How hard Republicans push back on Democrats' efforts remains to be seen.
Source: CNBC
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