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Structural Analysis Notes · 2026.11.07

Losing Congress, the President Still Decides War and Tariffs — The US Midterms and Chief of Staff Miller

Three days after Democrats took both chambers, Trump made the aide who designed his immigration crackdown his chief of staff. Congress can stop budgets and run investigations; war, tariffs and foreign policy stay with the president

Conclusion

In the US midterms of November 3, 2026, Democrats won majorities in both the Senate and the House. Three days later, on the 6th, President Trump replaced his chief of staff, Susie Wiles, with Stephen Miller. Miller is the aide who designed the second term's immigration crackdown. A White House official explained the appointment as a sign that the president is not rethinking his policies.

What a Democratic Congress can stop is budgets, investigations and confirmations. Overriding a presidential veto takes two-thirds of both chambers, and Democrats do not have it. For the next two years, the president still decides war, tariffs and foreign policy. A president who can no longer pass laws at home puts an aide who will not change course at the head of his staff, and acts in foreign policy, where Congress binds him least. That combination is the reason to expect more turmoil in the world.

What happened

What Miller has done

Miller is 41 and has been at Trump's side since the 2016 campaign. In the first term he helped design the executive order barring entry from several Muslim-majority countries. From January 2025 he served as deputy chief of staff for policy and homeland security adviser, and is described as the designer of the second term's immigration crackdown and mass deportations. After immigration agents shot and killed two US citizens in Minneapolis in January 2026, the White House rolled back part of the policy. He has also defended the Iran war.

The chief of staff controls the president's schedule and decides which proposals and which people reach the president. On his appointment, Miller wrote on X that he would fight with all his soul to support the president. Democrats say they will investigate him through the House Oversight Committee.

What Congress can stop, and what it can hardly stop

What Congress can stop What Congress can hardly stop
Budgets. Foreign-affairs and defense appropriations start in the House and must pass both chambers The veto. Overriding it takes two-thirds of both chambers. The president had said that if Republicans lost, he would veto everything
Investigations. Committees can demand documents and summon officials Tariffs. They are levied under powers Congress has already handed to the president
Nominations and treaties. The Senate confirms and ratifies War. The Iran war began without congressional approval. A bill to end it would still face the veto

The tariffs survived even a loss in court. On February 20, 2026, the Supreme Court ruled 6–3 that the International Emergency Economic Powers Act (IEEPA) does not authorize tariffs. The administration switched to other statutes, and since July 24 it has imposed additional tariffs on 60 economies under Section 301 of the Trade Act. Imports from Japan are capped at 12.5% including the original duty (items under Section 232 of the Trade Expansion Act, such as cars, are handled separately). When one statute is struck down, another can do the same thing. For Congress to change this, it must rewrite the powers it handed over, and that bill also faces the veto.

A president constrained at home acts abroad

Jon Alterman of CSIS says that for presidents who are politically constrained at home, foreign policy is the area where they can act with relative freedom (Reuters). A senior official in Japan's Prime Minister's Office shares the concern that a president constrained at home may speak out more on foreign affairs (KAB, November 4).

What the president can move on his own in the next two years is the following (as laid out by CFR).

Congress resists with budgets and investigations; the president answers with the veto. Domestic policy stops there, and what moves is foreign policy and tariffs, which the president can decide alone. The person now in the post that assembles those proposals is Miller.

A new Congress does not change war or tariffs. What changed is that laws no longer pass at home, and who stands beside the president.

For companies in Japan

When you cannot read the other side's judgment, what you can do is reduce what depends on it.

Keep on your own side what you can keep on your own side. The Independence part of the series is the procedure for that.


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