The new Democratic majorities set to take control of the U.S. House and Senate in January are likely to target President Donald Trump’s tariffs for repeal.
That’s going to be an uphill battle, even given how unpopular they — and the inflation they’re blamed for — are with the public and businesses.
Tariffs contribute to the affordability problem voters rebelled against in the midterms, said Martha Gimbel, executive director of the Budget Lab at Yale University.
“We’re facing a 11% tariff rate, a cost of about $1,100 per household,” she said.
In order to repeal the import taxes in the new Congress, Bill Reinsch, senior adviser at the Center for Strategic and International Studies, said Democrats will have to “get enough Republicans to make it veto-proof.” It would need a two-thirds majority.
“That would be very, very difficult,” Reinsch said.
Scott Lincicome, vice president of general economics at the Cato Institute, said Democrats might find some allies on the other side of the aisle — including Republicans on the northern border, or those with trade-dependent constituencies like whiskey makers in Kentucky.
“To cobble together a veto-proof majority on some narrow things—targeting Canada, for example,” he said.
Repealing the tariffs on Canada would be a popular move, as would getting rid of all the import taxes. But that would create a challenge for Congress, Gimbel said.
“You’re getting almost $2 trillion in revenue over ten years,” she said. “That’s a lot of money to give up.”
Or it’s a lot of money to make up by raising taxes elsewhere.