On April 9, U.S. President Donald Trump announced a dramatic shift in tariff policy with a 90-day pause for levies imposed on roughly 60 trading partners. In a surprising twist, Trump authorized a universal lowered reciprocal tariff of 10 percent as negotiations continued, pointing to stock market declines as the reason, claiming people were "yippy and afraid." 📉
This unexpected move has unsettled not only die-hard MAGA fans but also key allies on Wall Street and in Silicon Valley. Influential figures in politics and business are watching closely as the policy change sparks heated debate.
Several Republican senators have voiced their concerns about the tariffs. Texas Republican Senator Ted Cruz remarked on Fox News that such tariffs act as a tax on consumers. On his podcast, he warned that while using tariffs as leverage to negotiate lower rates abroad could be beneficial in the short term, a prolonged imposition might lead to inflation, hinder job growth, and risk a recession in the U.S. economy.
Kentucky Republican Senator Rand Paul also criticized the move, rejecting the justification of a "national emergency" caused by trade deficits to support the tariffs. In early April, in a rare bipartisan twist, four Republican senators joined Democrats in voting to block tariffs on Canadian imports, with Senators Lisa Murkowski, Mitch McConnell, Rand Paul, and Susan Collins casting decisive votes to end the measure.
In another development, Senators Chuck Grassley and Maria Cantwell introduced a bill requiring Congress to approve any new tariffs within 60 days of their imposition or automatically block their enforcement. The White House has expressed strong opposition to this proposal, indicating that Trump would veto such legislation.
The unfolding tariff saga continues to create ripples in the market and stir debate among investors, legislators, and the general public. Stay tuned as this story develops and its long-term impacts on the economy come into focus! 🚀
Reference(s):
Trump's abuse of tariffs unsettles 'staunch allies, die-hard fans'
cgtn.com
