Democrats Target Canada Tariffs; 25% Semiconductor Tariff Remains

By Rebecca Stone

A 25% Section 232 tariff still applies to certain semiconductors and derivatives as Democrats prepare a first-100-hours House effort to restore Congress’s tariff authority and begin repealing duties on Canada.

Can Democrats act in their first 100 hours?

Democrats won control of at least 54 Senate seats on Nov. 3; Alaska and Mississippi were still uncalled as of Saturday. The bloc needs 60 votes to break a filibuster and two-thirds of both chambers to override a veto, or 67 Senate votes. Trump is expected to veto any repeal.

Rep. Hakeem Jeffries, expected to become House speaker in January, would move the trade-authority bill during the first 100 hours. Democrats also plan to push for repeal of the 50% duties on selected Canadian goods.

Jeffries said: “We should restore congressional authority as it relates to tariffs, because the Trump tariffs are making life more expensive for the American people.”

Which tariffs survived the court ruling?

The Supreme Court struck down Trump’s near-global “reciprocal” tariffs under the International Emergency Economic Powers Act in late February. The administration has been ordered to refund $166 billion collected under them; about $138 billion has been returned since February.

Companies still book those refunds: IEEPA claims boosted SharkNinja’s third-quarter earnings, while SolarEdge’s gross margin included a $36.0 million IEEPA tariff benefit. A separate 150-day global surcharge imposed under Section 122 of the Trade Act expired July 24.

According to a Congressional Research Service fact sheet, the remaining tariff authorities cover:

• Section 232: Certain semiconductors and derivatives at 25%.
• Section 232: Autos and parts at 15%-25%, with some USMCA exceptions.
• Section 232: Medium and heavy trucks and parts at 25%; buses at 10%.
• Section 232: Patented pharmaceuticals at 10%-100%, depending on country.
• Section 232: Steel, aluminum and copper products at 10%-50%.
• Section 232: Polysilicon and derivatives at 10%-15%, with minimum import prices from Dec. 4.
• Section 232: Drones and components at 10%-100%, depending on weight class.
• Section 301: Forced-labor goods from 60 economies at 10%-12.5%.
• Section 338: Selected Canadian alcohol, dairy and vehicles at 50%, on top of Section 232.

Section 232 investigations into robotics and industrial machinery, wind turbines and medical goods remain open. Trump ordered trade talks on imported robots last month; those talks leave tariffs possible after 180 days.

Why is Canada the first target?

Trump signed three proclamations on July 20 imposing 50% tariffs on Canadian goods, including wine, honey, hockey sticks and cheese, citing Canada’s treatment of U.S. autos, alcohol and dairy.

They took effect Aug. 22 after talks failed, and Canada retaliated dollar for dollar. This marked the first use of Section 338 of the 1930 Tariff Act to impose a tariff.

Sen. Ron Wyden of Oregon, set to chair the Senate Finance Committee, called repeal an obvious priority because the duties raise prices and harm communities on both sides of the border. Michigan Sen.-elect Abdul El-Sayed said ending the tariffs, especially those on Canada, had to happen immediately.

Can the courts dislodge the Canada duties?

Gellert Global Group, a New Jersey cheese importer represented by the Liberty Justice Center, which won the Supreme Court case against the reciprocal tariffs, sued the Court of International Trade on Oct. 20.

It argues that later trade law superseded Section 338 and that Canada’s retaliation fails the discrimination test the statute requires; Gellert wants refunds with interest. The company says it imported $71 million of Canadian cheese in 2025 and now pays about $40 million a year in duties.

A separate case accuses Trump of trying to recreate the “liberation day” tariffs the Supreme Court threw out.

How can Democrats pressure a president holding the veto?

Without a veto-proof coalition, BDO senior tax manager Kit Johnson said Congress might consider adding riders to must-pass bills or negotiating with the administration. Democrats may also pass bills they know Trump will veto to set up the 2028 campaign, while some Republicans who opposed the tariffs during the midterms may distance themselves.

On Oct. 28, Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, asked Trump for records on tariff exemptions. Raskin alleged “sweetheart deals” for industries whose leaders gave the president gifts, and Democrats plan investigations of Trump and his associates once they control committees.

Trump has said he would use the veto to force negotiations, without identifying a deal he would accept. He said: “If I took tariffs off — we have 3,000 plants under construction right now. Every single plant would stop building.”

What do the economic estimates show?

In the CNBC Voter Poll on Nov. 3, 65% of respondents said the duties had hurt the economy, while 22% said they had helped. The Tax Foundation estimates the tariffs raised the average household’s tax burden by $820 this year. The Penn Wharton Budget Model estimates they brought in about $300 billion from January 2025 through July 2026.

For chipmakers and polysilicon suppliers, the next pricing markers are the open Section 232 investigations and the Dec. 4 minimum import prices; absent a veto-proof repeal, the confirmed baseline remains a 25% duty on certain semiconductors and derivatives.