Five Republican Senators unite with Democrats against Trump’s tariffs.
I am pleased to report Some Republican Senators Show Some Tariff Sanity.
The 51-48 vote to approve the measure took place just hours after Trump imposed a 10% baseline tariff on all imports to the U.S., and higher rates for some nations. It marked a significant rebuke of the president’s expansive effort to overhaul U.S. trade policy with friends and foes alike.
The resolution, led by Sen. Tim Kaine (D., Va.), would end an emergency declaration Trump used to impose tariffs on Canadian goods—the first time, along with a similar move on goods from Mexico, that a president had ever used the International Emergency Economic Powers Act to impose tariffs.
Under federal law, Congress has the power to cancel national emergencies declared by the president. But the current proposal has been blocked in the GOP-led House, and Trump could veto any measure that makes it to his desk, making Wednesday’s vote largely symbolic.
Sens. Susan Collins of Maine, Lisa Murkowski of Alaska and Rand Paul and Mitch McConnell of Kentucky joined with all Democrats in backing the resolution. Paul, who is a co-sponsor of the bill, has argued that tariffs are a tax and that only Congress—not the president—can impose taxes under the Constitution.
“This is a tax, plain and simple, on the American people,” Paul said. “You can’t simply declare an emergency and say, ‘Well, the constitutional republic was great, but gosh, we’ve got an emergency and times are dire.’ ”
Paul clapped after the vote tally was final, as a beaming McConnell—the former party leader who has long had a bumpy relationship with Paul—stood next to him.
Ahead of the vote, Trump took to his social-media platform to attack Republicans who had been reported to be siding with Democrats, saying that they have “been extremely difficult to deal with” and “unbelievably disloyal” to Thune and the Republican Party.
Collins said tariffs would inflict harm on Maine, which she said imports home-heating oil and gasoline from Canada, as well as potash, a fertilizer for potato growers. In turn, Maine sends its blueberries and lobsters to Canada for processing.
“The fact is, that if we impose these tariffs on Canadian processing, it’s going to be our Maine lobstermen who will bear the cost. It’s going to be consumers who bear the cost,” Collins said. She said that Canadian tourists have already begun canceling vacation trips to her state.
Senator Grassley Introduces a Separate Measure
Today, Grassley Pushes for Congressional Approval of President’s Tariffs
Republican U.S. Senator Chuck Grassley introduced a bill on Thursday that would require congressional approval for new tariffs, the day after President Donald Trump unveiled sweeping new taxes on a vast array of imported goods.
Grassley, whose home state of Iowa relies heavily on the global agricultural trade, joined Democratic Senator Maria Cantwell of Washington for the “Trade Review Act of 2025” which would require Congress to sign off on new tariffs within 60 days of their imposition or automatically block their enforcement.
The move, made the day after four other Senate Republicans voted for a measure that would lift Trump’s tariffs on Canadian goods, was the latest sign of dissent among Republicans as Trump’s aggressive moves fanned recessionary fears and sparked Wall Street’s worst day since 2022.
Symbolic Actions
These are symbolic measures because they the totality of House Republicans are too fearful of opposing Trump.
But even if it passed, Trump would veto it.
This is the problem of ceding constitutional rights to the President.
Stocks Suffer Biggest One-Day Wipeout in Value Since March 2020
I was on the road and missed the close. It was ugly. The Wall Street Journal reports Stocks Suffer Biggest One-Day Wipeout in Value Since March 2020
Major stock indexes dropped as much as 6% on Thursday. Stocks lost roughly $3.1 trillion in market value, their largest one-day decline since March 2020. Stock-index futures continued to drift lower Thursday evening.
The Dow industrials dropped 1679 points, or 4%. The tech-heavy Nasdaq, which powered the market higher for years, was down 6%, pulled lower by big declines in Nvidia, Apple and Amazon.com. The S&P 500, which fell 4.8%, and the other benchmarks suffered their sharpest declines since the early days of the Covid-19 pandemic.
The dollar meanwhile tumbled, with the WSJ Dollar Index suffering its sharpest decline since 2023. The 1.3% fall brought the greenback to its lowest level since October, a sign of unease over the growth outlook and fears that the flow of funds into the country will be sharply curtailed. The dollar sank more than 1% against the euro, Japanese yen and Swiss franc.
Some of America’s allies came out swinging after the details of the U.S. president’s tariff plans were disclosed late Wednesday. French President Emmanuel Macron said Europe is weighing retaliation against U.S. tech firms, while Canadian Prime Minister Mark Carney said his country will match President Trump’s auto tariffs with 25% tariffs of its own.
Trump took the selloff in stride. “I think it’s going very well,” Trump said in response to a question about his tariffs Thursday afternoon. “The markets are going to boom.” Later Thursday, he left the door open to making deals to lower tariffs, while also promising new ones on pharmaceuticals and semiconductors.
Dozens of household-name stocks posted double-digit declines, including HP, Nike and Target. Stellantis also fell sharply. The Jeep maker said it is temporarily halting production at its auto assembly factories in Mexico and Canada.
The turmoil spread beyond stocks, with oil prices dropping more than 6% and investors selling gold after its sharp run over the past year to fresh records. Inflation expectations rose, but so did fears that the tariffs will tip the economy toward recession, sending investors to the safety of Treasurys.
Hoot of the Day
“I think it’s going very well,” said Trump.
This is how well.
- DOW: -3.98 Percent
- Nasdaq: -5.97 Percent
- S&P 500: -4.84 Percent
- Russell 2000 Index: -6.59 Percent
Trump Signals He’s Willing to Make Deals to Lower Tariffs
“Tariffs give us great power to negotiate.”
Question: Who can possibly believe Trump would honor any deal he makes?
Countries should let the US stew.
Also see Reflections on the Day Trump’s Tariffs Shook Wall Street and Corporate America