Tax Foundation: Trump tariffs cost average U.S. household $820 in 2026
Democrats plan to use new legislative power and subpoenas to challenge the administration's trade policies, starting with the 50% duties on Canadian goods.
By Samuel Hayes ·
The average U.S. household has absorbed an extra $820 in tax burden due to President Donald Trump's tariffs in 2026, according to an estimate from the nonprofit Tax Foundation. This figure lands as Democrats prepare to launch their first legislative push against the administration's trade policy following their midterm victory.
Trump took office in January 2025 and quickly imposed duties on nearly every trading partner. The strategy created multiple trade wars, with the most intense conflict occurring with Canada. The administration used a Great Depression-era law to impose 50% tariffs on a range of Canadian goods. These measures have drawn legal challenges and political scrutiny from the opposition party.
Democrats won a landslide victory in Tuesday's midterm elections. They now control the House and have increased their numbers in the Senate. Rep. Hakeem Jeffries of New York is expected to become House speaker. He has stated that restoring congressional authority over tariffs is a top priority. "We should restore congressional authority as it relates to tariffs, because the Trump tariffs are making life more expensive for the American people," Jeffries said at a press conference in late August.
The Democratic plan involves two main tracks: legislation and investigations. Lawmakers intend to file a series of bills in the first 100 hours of the new Congress. These bills aim to unwind the tariff regime by reasserting the power of Congress to levy taxes. Sen. Ron Wyden of Oregon, who will lead the Senate Finance Committee, said the party will target the Canada trade war first. "One of the most obvious priorities would be repealing Trump's tariffs on Canada, which are raising prices and harming communities on both sides of the border," Wyden said.
Simultaneously, the House Judiciary Committee is preparing subpoenas. Rep. Jamie Raskin of Maryland asked Trump for records on tariff exemptions on Oct. 28. Raskin alleges the president used exemption powers to strike deals with industries that gave him gifts. The administration faces multiple lawsuits. A suit filed Oct. 20 challenges the 50% Canadian tariffs. Another case addresses the "liberation day" tariffs, which the Supreme Court struck down in late February. The government has been ordered to refund $166 billion collected under that policy.
The legislative path is blocked by the Senate filibuster and the presidential veto. Democrats lack a 60-vote majority in the Senate. Overriding a veto requires two-thirds majorities in both chambers. Trump has signaled he will use his veto pen frequently. "If I took tariffs off, we have 3,000 plants under construction right now. Every single plant would stop building," Trump told CNBC on Wednesday.
The Penn Wharton Budget Model calculates that tariffs have generated approximately $300 billion in revenue between January 2025 and July 2026. About $138 billion of that total has already been refunded following the Supreme Court ruling. Another $20 billion is scheduled for refund. The administration had claimed the revenue would fund $5,000 dividend checks for adults, a plan that would cost roughly $1.2 trillion.
A CNBC Voter Poll conducted on Nov. 3 found that 65% of respondents believe tariffs hurt the U.S. economy. Only 22% said they helped. Republicans in Congress face pressure from voters who link high costs to these duties. Some GOP lawmakers who traditionally supported free trade are now questioning their alignment with the president's protectionist agenda.
