In Washington, the economic ramifications of President Trump’s sweeping tariff strategy are causing concern among various groups, including manufacturers trying to secure long-term plans, farmers facing repercussions from Chinese buyers, and U.S. households dealing with rising costs.
Republican senators are expressing their unease about the strategy, implemented on Wednesday, and the broader economic impact it could have. During a Senate hearing, there was notable skepticism about Trump’s policies among Republican lawmakers, an unusual stance as they have often backed the president.
Their apprehension is well-founded, given the volatile state of the stock market and economists’ warnings of a potential recession.
“Whose throat do I get to choke if this proves to be wrong?” Republican Senator Thom Tillis demanded of U.S. Trade Representative Jamieson Greer during a Senate Finance Committee session, asking who in the administration should be accountable if an economic downturn follows.
Tillis’ frustration stems from tariffs that could impede U.S. manufacturers reliant on materials from China, impacting states like North Carolina, where foreign investments in manufacturing are substantial.
Although wary of outright criticism of Trump, Republicans seem to be cautiously balancing their critiques of the tariff introduction with praise for Trump’s broader economic objectives.
In a Senate address, Tillis acknowledged the president’s firm stance against nations exploiting trade relations with the U.S., while questioning White House strategies for long-term economic impacts of the tariffs.
Trump remained undeterred, touting the tariffs as ‘legendary’ during a fundraiser. Tillis admitted that the trade strategy could ultimately be fruitful but underscored the limited window to prove its worth amid higher consumer prices and worker layoffs.
Meanwhile, Greer reassured the committee that negotiations with other countries were ongoing, framing the trade deficit as a longstanding issue not easily resolved.
Republican senators have urged swift action to minimize economic instability, with some likening Trump’s position to a pitbull that caught a car, now facing trade deal offers from various countries. “I hope he takes the deal,” commented Senator John Kennedy.
Despite this, Congress has largely given Trump leeway to develop his strategy, rejecting moves to limit his tariff authority. Still, anxiety among Republican ranks is palpable.
For instance, Senator James Lankford explained that a business in Oklahoma had to pause cost negotiations with retailers after moving production from China to Vietnam due to tariffs on the latter.
Lankford pressed for a negotiation timeline, but Greer emphasized that outcomes supersede artificial deadlines.
Trade agreements can take extensive periods to finalize due to intricate legal, economic, and business considerations. Notwithstanding, some encouragement exists from the president’s reported readiness to negotiate.
Senator Steve Daines noted his optimism regarding trade talk developments, attributing a temporary stock market uplift to these negotiations being a means to an end rather than an end itself. Daines expressed concern about the potential inflation from tariffs and their repercussions on American farmers and manufacturers.
In contrast, some GOP figures believe enduring economic pain justifies the anticipated long-term benefits. Representative Ralph Norman affirmed Trump’s approach, despite acknowledging the associated difficulty.
Simultaneously, traditional Republicans are exploring ways to counter the tariff strategy.
Senior Republican Senator Chuck Grassley introduced a bipartisan bill aiming to empower Congress to review new tariffs, with similar legislative efforts present in the House.
This move would essentially return some constitutional tariff authority to Congress, previously delegated to the president through various laws.
However, the administration has signaled a likely presidential veto, and Republican leaders in the Senate and House expressed reluctance to advance the measure. Trump labeled proponents of the legislation as “rebel Republicans,” criticizing their negotiating prowess.
The lack of clear messaging from the president continues to leave lawmakers in the dark, often guessing who holds influence within the White House.
Kennedy highlighted receiving calls from businesses in his state with no clear answers regarding economic prospects.
While Kennedy supports Trump’s long-term goals, he conceded that implementing dramatic tariff hikes against the world without chaos is challenging.