‘We just don’t know’: Republicans raise concerns about tariff blitz

Senate Republicans are jittery about the wide-ranging tariffs, with some saying Congress should reassert its powers to run trade policy and others warning the levies carry deep risks.

Mitch McConnell backed a measure to oppose a 25 per cent tariff on Canadian imports. Picture: Getty Images via AFP.

Senate Republicans grew jittery about President Trump’s wide-ranging tariffs, with some saying Congress should reassert its powers to run trade policy and others warning that the administration’s plans carry deep risks.

The tariffs, central to Trump’s second-term economic agenda, sparked a widespread sell-off on Wall Street amid concerns that the new levies would drive up prices and tip the economy into a recession. Trump is imposing a 10 per cent baseline tariff worldwide, with even higher levies on partners including Japan, Europe, South Korea and Vietnam.

Sen. Chuck Grassley (R., Iowa), the only grain farmer in the Senate, joined with Sen. Maria Cantwell (D., Wash.) to introduce a bill on Thursday that would allow Congress to remove tariffs put in place by any president by a simple majority vote.

Grassley’s office said the bill was part of his longstanding work on trade policy and not specifically a response to Trump’s actions.

“We have to wait and see the impact” of the new tariffs, Grassley told reporters. “I’m not surprised at the impact today, but we’ve got to wait a few days and get a longer-term impact.”

Late Wednesday, four Senate Republicans helped Democrats pass a measure aiming to reverse a previously announced 25 per cent tariff on Canadian imports, and Democrats said they were planning more such measures to challenge Trump’s policies. None of the proposals are likely to become law, but they serve to help gauge GOP pushback.

Sen. Mitch McConnell (R., Ky.), who backed the Canada measure, said on X that tariffs are “bad policy, and trade wars with our partners hurt working people most,” pointing to the expected hit to farmers, bourbon makers and car manufacturers in his state. He said that “at a time when Americans are tightening their belts, we would do well to avoid policies that heap on the pain.” The other three Republicans to support the Canada measure were Sens. Rand Paul of Kentucky, Lisa Murkowski of Alaska and Susan Collins of Maine. Paul has argued that the tariffs amount to a tax – making it a matter for Congress to decide, not the president.

“This isn’t about political party. I voted for and supported President Trump. But I don’t support the rule of one person,” he said in a floor speech Wednesday.

Other GOP lawmakers indicated their support for the president’s agenda might have a breaking point.

“Tariffs are like whiskey,” Sen. John Kennedy (R., La.) said on Fox News. “A little whiskey under the right circumstances can be refreshing. Too much whiskey under the wrong circumstances and you end up drunk as a goat. We just don’t know right now.” Sen. Jerry Moran (R., Kan.) told CNN it was too soon to gauge the impact of the tariffs, but he said he “would have thought they would be less dramatic, less significant and more targeted. I think we ought to be focused on our economic adversaries, and be less damaging to our economic allies.”

Democrats said they believed they could win over more Republicans. Sen. Tim Kaine (D., Va.), the lead author of the measure to undo the tariffs on Canadian goods, said he was planning to introduce similar measures aimed at a related suite of tariffs aimed at other countries.

“As the economic reality sets in, we could get more, “’ Kaine said of GOP votes. Senate Republican leaders were working to keep Republicans on message, highlighting that Trump’s broader goal was to level the playing field, saying unfair trade relationships have cost Americans jobs and sent vital industries overseas. Senate Majority Whip John Barrasso (R., Wyo.), one of Trump’s staunchest Senate GOP allies, told reporters that “long term, I think this is very important for the country.” “We’ve been taken advantage of for years by so many other countries,” Barrasso said.

Senate Majority Leader John Thune (R., S.D.) said he was in “wait and see” mode to find out how countries respond and what the ultimate permanent tariff policy might look like. “But obviously you want to make sure you’re not doing harm to the economy.” Trump’s latest round of tariffs would raise $1.8 trillion in revenue over a decade on top of $1.3 trillion in previously announced tariffs, according to the Tax Foundation, which favours a simpler tax system with lower rates and fewer breaks. That is before counting the negative economic effects of the higher import taxes.

That makes the combined tariffs nearly as large as the $3.8 trillion extension of tax cuts that Trump is trying to push through Congress this year. The tariffs amount to an average tax increase of $2,100 per household, according to the analysis.

Under the proposal from Cantwell and Grassley, any tariffs imposed by the president would expire after 60 days unless Congress voted to approve them. Congress also would have the power to terminate tariffs at any time by voting to pass a resolution of disapproval. If a president vetoed such a resolution, then each chamber would have to override the veto at a two-thirds threshold.

“If President Trump is successful in reducing tariffs in other countries, I’m going to say ‘Amen; praise the Lord.’ But if he’s unsuccessful, I’ll say, ‘I told you so,’ ” Grassley said in a video statement Wednesday as Trump was unveiling his proposal.

Dow Jones