Global recession looms after Trump's tariffs //
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Texas U.S. Senator Ted Cruz has warned that his fellow Republicans risk “hemorrhaging” the 2026 midterm elections if Donald Trump’s “Emancipation Day” tariffs cause a recession.
Cruz also warned that if the president’s tariffs remain in place for too long and are met with global retaliation on American goods, a full-blown trade war could erupt, “destroying jobs at home and doing real damage to the U.S. economy.”
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“A hundred years ago, the U.S. economy didn’t have the impact it has today. But I’m concerned that there are voices within the administration that want to keep these tariffs in place forever,” he added.
The Texan’s comments on the Verdict podcast on Friday indicate that Republicans are growing increasingly uneasy about the prospect of global “reciprocal” tariffs on imported goods.
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On Thursday, Republican U.S. Senator Chuck Grassley of Iowa introduced bipartisan legislation that would give Congress more power to impose tariffs on countries with which the United States trades.
The bill, co-sponsored by Democratic Senator Maria Cantwell, would “reaffirm” Congress’s role in setting and approving trade policy.
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Republican Senators Lisa Murkowski, Mitch McConnell, Jerry Mora, and Thom Tillis have since signed on as co-sponsors. While the legislation is largely seen as symbolic, it reflects concerns about signs of electoral backlash against the Trump administration’s policies, including a $5.4 trillion loss in stock market capitalization in two days and the defeat at the ballot box of a Wisconsin Supreme Court candidate backed by Trump’s billionaire business adviser Elon Musk.
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In Florida’s two congressional elections, Republican winners also fared poorly.
On his podcast, Cruz warned that in the long run, tariffs and trade retaliation could push the United States “into a recession, a terrible recession — 2026 will be a year of political bloodshed.”
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“You could have a Democrat House, you could even have a Democrat Senate,” Cruz said.
“If we’re in the middle of a recession and the people are getting hit hard, they’re punishing the party in power,” Cruz warned, disagreeing with the White House’s position that tariffs would create “a thriving economy.”
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But if “every other country in the world” retaliates against the United States and Trump’s so-called reciprocal tariffs remain in place, “that’s a terrible outcome” that “will destroy jobs at home and do real damage to the U.S. economy.”
Still, Cruz extended an olive branch to the administration.
“Look, I want this to be a success … but my definition of success may be different than the White House’s,” he said, adding that his definition of success is “dramatically reducing tariffs abroad and dramatically reducing tariffs here.”
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“This is a success for American workers, American businesses, American growth, American prosperity,” he added. “This is a great outcome.”
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