Even Senator Ted Cruz, a strong ally of President Trump and leading Republican from Texas, recently expressed alarm that the economic fallout from President Trump’s tariff policies. He elaborated on these worries on Friday’s new episode of the Verdict podcast. Cruz’s comments illustrate a growing panic among Republicans towards the imposition of global “reciprocal” duties on imported products. He understands that these responsibilities might trigger sustained political backlash.
Cruz cautioned that extended tariffs and possible retaliatory actions from other countries could drive the U.S. into a recession. He assured that these types of economic recessions traditionally lead to beatdowns for the ruling party at the ballot box. He cautioned that the 2026 midterm elections might be a bloodbath. If, inevitably, the economy takes a hit again, voters will respond, probably by flipping control of Congress.
Cruz’s warnings were issued just days before the introduction of new bipartisan legislation that was co-sponsored by Senator Chuck Grassley of Iowa. We’re encouraged that this bill continues to strengthen Congress’s authority to set and decide trade policy. Cruz is right to support this move as an important, though partial, step to reassert legislative control over tariffs. Despite being largely symbolic, this legislation underscores the rising anxiety among lawmakers following a staggering $5.4 trillion loss in stock market capitalization over two days.
As Cruz mentioned, a hundred years ago, the U.S. economy no longer had the leverage that it has today. Now, it has the opportunity to truly make a big difference. He made it clear that he was concerned that some voices in the administration were advocating for permanent tariffs to be imposed. He cautioned that this kind of action would hurt American workers and endanger economic security. He continued, “These tariffs would kill tens of thousands of U.S. jobs in the process and do serious harm to the U.S. economy.”
Cruz reiterated his desire for success in the trade negotiations. He made it clear that his vision of success is not the same as the one coming out of the White House. “I want this to work, I really do,” he said. “My understanding of success may be very different than the White House’s. In my opinion, real success looks like lowering tariffs abroad and at home, a move that would help American workers and businesses compete.”
Cruz touted the new, mounting signs of a possible electoral backlash. He celebrated some past electoral cews for candidates opposed by Trump’s emergent political overlords, including Elon Musk’s defeat in Wisconsin’s newly-elected supreme court. He made the case that sticking to tariffs in the face of a global retaliation risked starting a major trade war. That would be a catastrophic outcome for the U.S. economy.