Trump and Congress Set for Clash Over Tariff Costs

The next big fight in Washington is shaping up to be over tariffs. After this week's midterms, House Democratic leader Hakeem Jeffries vowed to stop the "stupid Trump tariffs jacking up prices on Americans," while incoming Senate Finance chair Ron Wyden wants Congress to reassert its authority over trade policy, CPA Practice Advisor reports.

Republican Senator Ted Cruz has also criticised tariffs, but overriding a presidential veto would need roughly 13 Republican senators and nearly 50 Republican House members. Trump may still announce new duties tied to excess industrial capacity, which could affect more than a dozen economies. That makes a quick legislative rollback unlikely in the short term.

Markets are watching closely. A US-China trade truce expires in January, and Trump is due to meet Xi Jinping. Shares of Toyota and Hyundai rose on hopes of tariff rollbacks, but EY's Blake Harden expects tariffs are likely here to stay, so businesses should keep preparing for continued trade uncertainty.