Good evening. The fallout from Tuesday’s midterms keeps coming: On stocks, oil prices, data centers, Silicon Valley billionaires and more. This was a brutal day on Wall Street, with the S&P 500 posting its worst performance since President Donald Trump announced sweeping tariffs on “Liberation Day” last April.

Trump’s trade policies helped drive the inflation that in turn propelled Democrats to stunning, first-in-a-generation wins in red states this week. But will the newly blue Congress be able to quit tariffs? — Tony Wagner, newsletter editor

The new Democratic majorities set to take control of the U.S. House and Senate in January are likely to target President Donald Trump’s tariffs for repeal.

That’s going to be an uphill battle, even given how unpopular they — and the inflation they’re blamed for — are with the public and businesses.

Tariffs contribute to the affordability problem voters rebelled against in the midterms, said Martha Gimbel, executive director of the Budget Lab at Yale University.

“We’re facing a 11% tariff rate, a cost of about $1,100 per household,” she said.

In order to repeal the import taxes in the new Congress, Bill Reinsch, senior adviser at the Center for Strategic and International Studies, said Democrats will have to “get enough Republicans to make it veto-proof.” It would need a two-thirds majority.

“That would be very, very difficult,” Reinsch said.

Scott Lincicome, vice president of general economics at the Cato Institute, said Democrats might find some allies on the other side of the aisle — including Republicans on the northern border, or those with trade-dependent constituencies like whiskey makers in Kentucky.

“To cobble together a veto-proof majority on some narrow things—targeting Canada, for example,” he said.

Repealing the tariffs on Canada would be a popular move, as would getting rid of all the import taxes. But that would create a challenge for Congress, Gimbel said.

“You’re getting almost $2 trillion in revenue over ten years,” she said. “That’s a lot of money to give up.”

Or it’s a lot of money to make up by raising taxes elsewhere.

Vickrey would know; he comes from a family of ranchers. He’s also one of three brand inspectors in western Wyoming’s Sublette County. It’s a niche job that’s nonetheless crucial to America’s supply chain. We followed Vickrey around as he blessed hundreds of thousands of dollars in transactions for the ranchers he also calls friends and neighbors.

Progressives got another win in Los Angeles today, as democratic socialist Nithya Raman unseated moderate Democrat Karen Bass as mayor of the nation’s second-largest city.

Down the ballot though, some of the Golden State’s results looked more like Iowa or Florida. Both those states amended their constitutions to spare residents taxes, while California  voted down a first-in-the-nation tax on billionaires while making it harder for lawmakers to put up another. 

California Governor Gavin Newsom and his successor Xavier Becerra opposed the wealth tax, saying it would cause billionaires to leave the state. Meta CEO Mark Zuckerberg had threatened to do just that, and his fellow ultra-rich Californians spent hundreds of millions campaigning against the measure.