Nov 6, 2026
It was a staggering sweep in the U.S. midterm elections on Tuesday, Nov. 3., as the Democrats won control of both chambers of Congress. And within hours of the results being announced, a senior Democrat congressman was promising to put an end to President Donald Trump’s tariffs on Canada.
If you work in any of the affected industries, or you’re simply tired of the trade war squeezing your budget, that sounds like the break Canadians have been waiting for.
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A promise from Capitol Hill isn’t the same as relief at the border, however. Before you rework your financial plans around a proposed rollback, it helps to know what Congress can actually do, how long it could take and where your money is most exposed.
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What did Democrats promise Canadians?
On the topic of reestablishing free and fair trade with Canada, Maryland Rep. Jamie Raskin, who’s in line to chair the House judiciary committee, told CBC News “that’s going to be very much on our agenda.” He hopes to see action within the first 100 days, arguing the Constitution gives Congress, not the president, power over tariffs.
And he isn’t alone. Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, named repealing the tariffs on Canada as one of the party’s clearest priorities in comments to Reuters.
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Can Congress actually end Trump’s tariffs on Canada?
On its own, probably not, and certainly not before year’s end. The new representatives and senators won’t be sworn in until January, and even after that Trump will still be able to lean on his executive authority. Any repeal bill would land on Trump’s desk, and Democrats lack the two-thirds majorities in both chambers needed to override his veto, according to The Globe and Mail. After the results came in, Trump posted an image of a red MAGA-style hat bearing the word veto on Truth Social.
The tariffs themselves were put in place through executive order. They include Section 232 tariffs on steel, aluminum and autos, plus 50% levies under Section 338 of a 1930 U.S. trade law. According to the Government of Canada, the Section 338 tariffs cover goods such as furniture, electronics, paper, wood products, clothing and sports equipment. There’s no exemption for products that qualify under the Canada-United States-Mexico Agreement.
A negotiated deal is the more realistic path forward. Prime Minister Mark Carney said the White House has moved on several of Canada’s key sticking points, and the two leaders are set to meet in China later this month at the Asia-Pacific Economic Cooperation summit. Canada-U.S. Trade Minister Dominic LeBlanc has stressed that those talks are held with Trump and his cabinet, who remain in office.
How are tariffs hitting Canadians’ wallets right now?
The Bank of Canada, the country’s central bank, raised its policy rate on Oct. 28 and expects new U.S. tariffs to slow growth in the fourth quarter. The bank also noted that businesses have largely absorbed higher costs so far, but its surveys point to more of those costs reaching consumers over the next year.
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Prices are already rising faster. Statistics Canada, the national statistics agency, reported that consumer prices rose 3.1% year over year in September, although that’s been driven primarily by elevated fuel costs as a result of the Iran war. Excluding gasoline, the Consumer Price Index rose 2.2%.
Ottawa’s response matters as well, as Canada imposed counter-tariffs of 15%, 25% or 50% on some U.S. imports, which can push up prices on affected American-made goods.
What to do now
The safest assumption is that today’s tariffs stay in place well into 2027, unless a Carney-Trump deal is announced before then. A few moves can help you prepare without overreacting:
- Don’t bank on a rollback. Hold off on big purchases or career moves that rely on promised tariff relief
- Stress-test variable-rate debt. The Bank of Canada says it may need to raise rates again — its next decision is Dec. 9.
- Start your mortgage renewal early. If you renew in the next year, compare fixed and variable options with a lender or broker
- Shore up your emergency fund. Workers in tariff-hit sectors such as autos, steel, aluminum and lumber should know how Employment Insurance (EI) works before they need it
- Avoid trading on political headlines. Check that your registered retirement savings plan and tax-free savings account aren’t overweighted in tariff-exposed sectors
A Democratic Congress can still add pressure by calling Trump’s trade officials before committees and forcing votes on the tariffs, which may strengthen Canada’s hand at the table. In the short term, though, the decisions that move your money will come from the White House, Ottawa and the Bank of Canada. As the Minister responsible for Canada-U.S. Trade Dominic LeBlanc put it, “Our job is to focus on what we can control” — which is sound advice for household budgets, too.
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Writer and editor based in Toronto with experience in personal finance, insurance, arts and culture and branded content.
