Republicans groan as Trump tariffs spur stock market turmoil
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President Trump speaks at a White House Rose Garden ceremony announcing his across-the-board tariffs on April 2. Photo: Chip Somodevilla/Getty Images
President Trump's across-the-board tariffs, and the stock market chaos that has ensued, are spiking the blood pressure of many Republicans on Capitol Hill.
Why it matters: To say a stock market collapse is bad politics is an understatement, and some Republican lawmakers are desperate to see Trump at least nudge the breaks and calm the markets.
- "I just hope they're not long-term," said one House Republican, speaking on the condition of anonymity to talk candidly about Trump's tariffs.
- Rep. Mike Simpson (R-Idaho), asked if the market reaction is giving lawmakers pause, chuckled and told Axios: "Uh, yeah. Obviously everybody is concerned."
- "It makes everybody uneasy," said House Appropriations Committee chair Tom Cole (R-Okla.).
Between the lines: The GOP has traditionally been a free trade party — and while its globalism-friendly wing has diminished during Trump's reign, it remains a not-insignificant force in the halls of Congress.
- Some Republicans remain predisposed towards few if any trade barriers, while others are simply worried about their political standing back home.
- Cole, an old-school Republican whose farm-heavy district is poised to be hit hard, told reporters his reaction to the tariffs is "mixed."
- Simpson said he expects "some members will" raise concerns directly to the administration, telling Axios, "When I've done that, they've listened."
Zoom in: Rep. Don Bacon (R-Neb.), another farm state Republican whose district is also highly competitive, is introducing a bill that would give Congress the power to vote to block tariffs implemented by the president.
- Rep. Dusty Johnson (R-S.D.), the chair of the pragmatist Main Street Caucus, told Axios he is "sure people are going to be taking a look at" the bill.
- "Any time you're talking about Article I, you're going to have a certain number of principled folks who want to have the conversation about what is Congress' job and what is the president's," he said.
Reality check: Despite the Senate version of Bacon's bill garnering more than a half dozen GOP co-sponsors, support may be more limited in the House, where Trump's favor is often the most coveted political currency.
- Rep. Richard Hudson (R-N.C.) the House GOP campaign chief, said the bill "doesn't have the votes in the House, so that's not going to happen."
- Several Republicans expressed skepticism based on the fact that Trump has already threatened to veto the bill — and Congress is highly unlikely to get the two-thirds majorities in both chambers to override.
- "Do you really think a bill like that is going to be signed by the president? I kind of doubt it," said Simpson, "so why waste the time?"
What to watch: Instead, tariff skeptics in the congressional GOP are prodding Trump to treat the tariffs as a negotiation tactic and engage with countries offering trade deals.
- Simpson said he would take the "zero-for-zero" tariff deal that the European Union has proposed "in a heartbeat."
- "If you're looking at tariffs as a way to raise revenue, I think that's a challenge," he said. "If somebody offers zero-for-zero, go for it!"
