Democrats plan to roll back some Trump tariffs, starting with Canada

US Democrats are planning to push for the repeal of some of the Donald J. Trump administration’s tariffs after taking control of Congress next year, starting with those imposed on Canadian goods.

The Wall Street Journal reported on Thursday (5 November) that Ron Wyden, the top Democrat on the Senate Committee on Finance, said he had begun discussing legislation with other lawmakers to repeal some tariffs imposed during President Trump’s second term once Democrats take control of the committee next January.

Repealing tariffs on Canada stands the best chance of winning support from Republicans willing to break ranks.

“There is overwhelming support for repealing the tariffs on products from Canada,” said Wyden.

Congressional sources said Democrats could next push for legislation to restrict Trump’s authority to invoke certain legal provisions to impose additional tariffs.

These include Section 338 of the Tariff Act of 1930. This year, Trump became the first president to invoke the provision to impose tariffs, levying an additional 50% tariff on some Canadian goods.

Another provision that could face restrictions is Section 122 of the Trade Act of 1974, which Trump invoked for the first time in February this year to impose temporary tariffs on imports.

Trump has already threatened to use his presidential veto to block such legislation pushed by Democrats. Under US congressional procedures, even if a bill passes both the House of Representatives and the Senate, a presidential veto can be overridden only with the support of two-thirds of lawmakers in each chamber.

By forcing lawmakers to take a position on unpopular tariffs, Democrats hope to persuade some Republicans to break ranks and build support for broader trade policy reforms ahead of the 2028 elections.

However, considerable uncertainty remains over whether Democrats can force Trump to adjust his trade policy. The US president retains broad tariff powers, and people close to Trump say there is little sign that the midterm election defeat will prompt him to slow his trade agenda.

Despite US Democrats’ intention to ease the trade war with Canada, the Canadian government’s budget unveiled on Thursday made clear that the two countries “will not return to our old relationship”. Ottawa will continue to pursue economic autonomy and reduce its reliance on the US market.

The budget, titled Masters of our Destiny, said that while trade diversification would take time, “the shift is underway”.

Canadian Prime Minister Mark Carney told reporters that day that while political developments in the US mattered and bilateral relations would continue to evolve, his government’s priority remained strengthening Canada’s economic independence.

Over the past 20 months, additional US tariffs on some Canadian goods have disrupted supply chains and hurt Canadian exports to the US and economic growth.

However, the US-Iran war has driven up global oil prices and boosted Canada’s oil revenues, giving the government more fiscal space to invest in infrastructure and stimulate the economy.