Republican senators are in full-blown panic mode after President Trump’s latest round of tariffs sent the stock market into a sharp decline, sparking fears of an impending recession.
While Republicans knew Trump was set to announce new tariffs, the scale of the decision shocked many and has left senators scrambling to deal with the fallout. Trump’s “reciprocal” tariffs—aimed at countries like the European Union, Japan, and South Korea—have triggered a wave of panic, especially among GOP lawmakers from farming states who fear retaliatory tariffs on U.S. agriculture.
“People back home are terrified about price hikes,” said Senator Lisa Murkowski (R-AK), echoing widespread concern that tariffs will drive up costs for American consumers. The fear of rising prices is particularly troubling, as inflation has already been a major issue driving Republican victories in the 2024 elections.
Senator Thom Tillis (R-NC) expressed frustration with the way power has been shifted to the executive branch by the GOP-led House. “We’ve made a mistake,” he said. “Congress has given too much power to the president. We need more control over decisions like this.”
Senator John Cornyn (R-TX) shared similar sentiments, noting that the problem goes beyond Trump’s administration. “This is a long-standing issue. We’ve given away too much power to the executive branch,” he said.
The panic is especially strong in agricultural states like Kansas. Senator Jerry Moran (R-KS) reported that farmers are worried they’ll be hit hardest by retaliatory tariffs. “They expected something more measured,” Moran said, noting that Trump’s aggressive approach to trade has taken many by surprise.
While some Republicans agree with the underlying message of Trump’s tariffs—that other countries have been taking advantage of the U.S. with unfair trade practices—many are alarmed by how quickly the president is using such drastic measures. “We should be doing this more carefully and gradually,” Moran added.
Even Trump’s strongest allies on Capitol Hill are expressing concerns. Senator Ted Cruz (R-TX), who has long supported the president’s trade policies, admitted that tariffs could hurt the U.S. economy. “If other countries raise their tariffs, it could result in a bad situation for the U.S.,” Cruz said, adding that tariffs essentially act as a tax on American consumers.
Trump’s tariffs, which include a 20 percent tax on European goods and a 24 percent tax on Japanese imports, have sparked an immediate market reaction. The Dow Jones dropped nearly 1,700 points, or 4 percent, on Thursday, while the S&P 500 and Nasdaq fell by over 4 percent and 5 percent, respectively.
In response to the growing concern, Senator Chuck Grassley (R-IA) introduced a bill alongside Senator Maria Cantwell (D-WA) that would require the president to notify Congress within 48 hours of imposing new tariffs and explain the reasoning behind them. If Congress doesn’t approve within 60 days, the tariffs would expire.
Financial experts are also sounding the alarm, with J.P. Morgan raising the likelihood of a recession from 40 percent to 60 percent, citing the uncertainty caused by Trump’s trade policies. Goldman Sachs has also warned of a potential global recession, adjusting its forecast for the S&P 500 and reducing its expectations for global growth.
Senator Tillis, who faces a tough re-election battle in 2024, said he’s hearing serious concerns from trade associations back home, particularly in agriculture. “The first people hit will be farmers, and it’s only going to get worse from here,” he said.
Tillis warned that if the Trump administration doesn’t have a clear plan to deal with the fallout from retaliatory tariffs, the situation could escalate quickly. “We need a strategy,” he said, adding that Commerce Secretary Howard Lutnick must be ready to respond to the market turmoil.
The possibility of a global trade war also worries Tillis, who questioned how the U.S. could revive manufacturing when tariffs are driving up the cost of the equipment and materials needed to build new factories. “How do you make the business case for bringing manufacturing back when everything you need to build is now subject to tariffs?” he asked.
Senator Susan Collins (R-ME) echoed concerns about Trump’s approach to allies, saying that tariffs should not be applied to friendly nations in the same way they are to adversaries. “We need to distinguish between our allies and our enemies,” Collins said, stressing the importance of maintaining strong relationships with key trading partners.
