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There appears to be growing unease among Donald Trump’s allies in Washington regarding his control over the economy, particularly concerning his approach to tariffs. Some are even suggesting the need to limit his authority in this area.
Initial movements are underway to potentially restrict the president’s sweeping ability to impose tariffs, a power that has been exercised with unprecedented reach in recent times.
While the chances of these initiatives making substantial headway are slim, what stands out more significantly is the sentiment they illustrate.
This sentiment is one of concern, particularly among Trump’s supporters on Capitol Hill, who seem taken aback by the extent and implications of his tariff strategies, similar to the reactions witnessed on Wall Street.
For example, Senator Ted Cruz from Texas has expressed conditional support for Trump’s usage of tariffs as a bargaining tactic, yet he harbors worries that the president may intend to make these tariffs a permanent fixture.
Cruz cautions that should these tariffs persist for weeks or months, they would likely inflict significant harm on the economy. He also voiced apprehensions that this may indeed be the direction Trump is pursuing.
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On his podcast, Cruz painted a grim picture of the potential fallout for the midterm elections should the tariffs be a catalyst for economic recession, predicting a substantial political shift with Democrats taking control of the House and possibly the Senate.
He noted the surprise registered by Wall Street in response to Trump’s tariff announcements, highlighting the notable 10 percent decrease in the S&P 500 index this week as a reflection of this dismay.
Cruz also emphasized that the burdens imposed by these tariffs will extend beyond foreign entities, noting that an American automotive manufacturer has indicated it expects to raise vehicle prices by approximately $4,500 by the summer due to these tariffs.
The motivation behind Trump’s tariffs remains unclear amid mixed signals from the White House. While they profess that these tariffs are intended to be largely permanent and will potentially enhance tax revenues, Trump has concurrently indicated a willingness to negotiate with Canada and suggested similar discussions with Vietnam.
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Cruz’s concerns are echoed among other Republicans, some of whom are urgently seeking reassurance that Trump’s actions are merely part of a negotiating strategy.
Senator Ron Johnson from Wisconsin remarked that while he is inclined to support Trump for now, he too is increasingly worried about the implications of these tariffs.
Furthermore, Senator Thom Tillis from North Carolina, facing a challenging re-election bid, pointed out that farmers in his state are nearing financial collapse, stating, “They don’t have time.”
Initial Congressional Actions
So how are these concerned senators responding to the situation?
Given that the U.S. Constitution allocates tariff authority to Congress, lawmakers are exploring measures to impose restrictions. Traditionally, since World War II, this power has been delegated to the president during emergencies.
Currently, there are discussions among some legislators about setting boundaries. While the initiative is primarily championed by Democrats, signs indicate that some Republicans are willing to collaborate.
The efforts began with a group of lawmakers who voted to rescind Trump’s tariffs on Canada; this proposal passed in the Senate but appears unlikely to succeed in the House of Representatives.
Still, there is a push in the House to facilitate a vote on the proposal. Additionally, a long-serving Republican Senator, Chuck Grassley, is backing a bill that would require congressional approval for any tariffs, or else they would automatically expire in 60 days.
However, it is important to recognize that the likelihood of these initiatives succeeding is extraordinarily low. Even if they manage to navigate through both chambers of Congress, a Trump veto would be nearly inevitable.
The broader implications of the current political context are notable.
Democrats Seize the Opportunity
On the other hand, there is little doubt which political party senses an advantage in the current circumstances. Democrats appear eager to capitalize on the controversy surrounding tariffs.
In the wake of last year’s electoral challenges, the party has been striving for a cohesive message, and the issues related to tariffs seem ripe for that purpose.
Top Democratic leaders hosted a news conference this week to announce efforts to attach an anti-tariff amendment to a budget bill advancing through the Senate.
Senate Minority Leader Chuck Schumer criticized Trump’s tariffs, labeling them as “one of the dumbest decisions he’s ever made as president,” and framed the economic impact as a tax on the middle class, benefiting the wealthy.
Schumer remarked, “It’s a disgrace” as he condemned the administration’s economic strategies.
Senator Ben Ray Luján of New Mexico also weighed in, cautioning Republicans against any future assertions of fiscal responsibility, indicating that they were about to abandon that principle due to their support for Trump’s tariffs.
On a day characterized by a falling stock market and increasingly strained international relations, it was noteworthy that Fox News barely covered the developments related to tariffs, suggesting a clear divide in how political entities perceive the issues at play.
Source
www.cbc.ca