As President Donald Trump's new tariff policies tank US stocks (^DJI, ^GSPC, ^IXIC), some investors wonder if Congress can influence the president to change course. 22V Research senior managing director Kim Wallace joins Market Domination Overtime with Yahoo Finance Head of News Myles Udland to explain why he thinks it's "fanciful" that Congress could legislate the US out of Trump's tariffs.
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We've talked a lot about um the the president's inner circle or who who he's listening to. What are the tools that Congress may have if it turns out that his constituents are ultimately opposed to these set of policies to try and either reverse influence or change what we've had announced from the White House in the last couple days?
Of those options, I think influence is probably the only viable one, that is quiet conversation. To the extent that the White House is willing to continue to entertain it from Capitol Hill. But the notion that you're you have a chance at legislation this year that will blunt what the president has announced I find to be fanciful. You need 291 votes in the house and 67 in the Senate to overturn a veto. Those votes are unlikely to be there unless the pain four or five, six months from now is so incredible that there's no option for members of Congress more worried about themselves than being loyal to the president. But that is a lot of pain between now and that point. Nor do I believe the third branch is a quick relief mechanism here. Yes, there are a lot of lawsuits in the federal judiciary challenging this president's executive authority. They will take time to wind through the process. It may be another two or three quarters before you have a Supreme Court ruling specifically on trade policy under the International Emergency Economic Powers Act or broadly on executive authority. So near term, persuasion is probably the only tool available.
