- President Trump announced a minimum 10% tariff on all U.S. imports Wednesday afternoon. Republicans admit they don’t know how it will impact the economy and that there’s cause for concern.
- The best–case scenario is that countries reduce their tariffs on U.S. products, and domestic manufacturing increases. The worst–case scenario is that supply chains don’t change, and Americans pay higher prices.
- Since President Trump started previewing his tariff plans in February, U.S. stocks have lost $5 trillion in value.
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President Donald Trump announced Wednesday, April 2, that all U.S. imports will face a minimum 10% tariff. Individual nations will face up to 49%, and certain products like cars will have a 25% tariff. There’s been a lot of talk about how this will impact the economy, and Republicans that Straight Arrow News spoke to on Capitol Hill admit they don’t know.
“Everybody’s a little concerned. We all are,” Sen. Tommy Tuberville, R-Ala., said.
“We’re in uncharted waters, and no one has any idea what the impact is going to be,” Sen. John Kennedy, R-La., said.
Economists and politicians are discussing the best and worst-case scenarios. Republicans hope the tariffs will prompt countries to reduce their tariffs on American products and lead to more domestic manufacturing.
What is the best-case scenario?
“I think, ultimately, what happens is, you get back down to a free trade agreement that these countries that are engaged in this disparity, this raw deal for Americans for so long, it will get their attention, and they’ll, I think, reduce their tariffs on us,” Speaker Mike Johnson, R-La., said.
“If somebody has a 100-plus percent tariff on imports of U.S. goods and we have virtually nothing, why don’t we settle that balance?” Johnson continued.
“We’ve got to get manufacturing back to the country, people back to work,” Tuberville said. “Better way to do that is tariffs. So let’s give it a shot and see what happens.”
What is the worst-case scenario?
The worst-case scenario is supply chains don’t change much, and Americans have to pay higher prices.
“So far in his time as president, costs have gone up, and tariffs will simply raise them further,” Sen. Chris Coons, D-Del., said.
The Senate is expected to vote on a resolution that would end the national emergency President Trump is using to impose tariffs on Canada. Sen. Tim Kaine, D-Va., introduced the measure, and four Republicans are expected to vote in favor, which would be enough for it to pass.
Even Republicans who aren’t voting for the resolution say they want tariffs between the nations to be reduced.
“So both sides disarm and go to zero tariffs. Let us let Canadian businesses and American businesses compete. Competition makes us all better,” Kennedy said. “May the best product at the best price win –– no interference by government through tariffs.”
“To think that Canada is now one of our targets is almost laughable in most parts in the United States,” Sen. Dick Durbin D-Ill., said. “Deal with trade issues as they arise; don’t try to establish a standard of tariffs against all countries in the world. That can backfire.”
The tariffs have already had a big impact on the economy. Since February, when President Trump started outlining and previewing his tariff plan, U.S. stocks have lost $5 trillion in value.
