Democrats have issued a grim forecast about President Donald Trump’s tariffs after a leading member of their party admitted they were ‘going well’.
While speaking with Fox News Digital, Rhode Island Senator Jack Reed cautioned that any short-term gains could be undercut by rising prices.
‘Within a few weeks or months, you’ll start seeing significant increases in most things you buy,’ Reed said.
‘And also, you will see disruption in terms of a lot of our industries, because they’re not able to access product or supply.’
Senator Chris Van Hollen, of Maryland, echoed those concerns, saying Trump’s tariff strategy contradicts his campaign promises.
‘This is the president who said he was going to come in and reduce prices. Prices are going to rise, and they’re going to rise more over time,’ Van Hollen warned.
It comes after Pennsylvania Senator John Fetterman, told Fox News Digital this week that the Trump administration’s aggressive use of tariffs has been effective so far.
‘Absolutely,’ Fetterman said when asked if he believed the U.S. is winning the trade war.
‘I’m a huge fan of Bill Maher, and I mean, I think he’s really one of the oracles for my party, and he acknowledged it, it’s like, hey, he thought that the tariffs were going to tank the economy, and then he acknowledged that it didn’t,’ Fetterman added.
‘So, for me, it seems like the E.U. thing has been going well, and I guess we’ll see how it happens with China.’
Trump this week intensified his tariff push. On Thursday, the 47th President signed two new executive orders – one raising tariffs on Canadian imports from 25 percent to 35 percent beginning Friday, and another modifying reciprocal tariff rates for countries with significant U.S. trade deficits.
The White House cited Canada’s failure to help curb fentanyl and other illicit drug imports as the reason for the increased tariffs.
However, Massachusetts Senator, Elizabeth Warren, took a broader view, arguing that Trump’s confrontational trade policies are pushing U.S. allies to look elsewhere for business.
‘Donald Trump may beat his chest and say, “Man, I made him take a 15 percent tariff or 25 percent tariff,” but also understand that every one of those trading partners is now looking hard all around the rest of the world to find other customers,’ Warren said.
‘The United States under Donald Trump is not a reliable trading partner. And that’s not good for any of us.’
Warren also linked the trade war to interest rate policy, blaming Trump’s tariff decisions for the Federal Reserve’s refusal to lower rates.
‘Jerome Powell said last month that he would have lowered interest rates back in February if it hadn’t been for the chaos that Donald Trump was creating over trade,’ Warren said.
‘And the consequence has been that American families have, for six months now, been paying more on credit cards, more on car loans, more home mortgages.’
The White House said in a statement: ‘The goal is to secure fair, balanced and reciprocal trade relationships.’
The moves build on Trump’s earlier decision this year to impose a baseline 10 percent tariff on all countries, with steeper rates for those running large trade surpluses with the U.S. Trump’s recently installed tariffs took effect on April 9, and since then, the his administration has inked several major trade deals.
During his second term, Trump and his administration reached a trade agreement with the European Union (EU) under which the E.U. committed to purchasing $750 billion in American energy and investing an additional $600 billion in the U.S. economy by 2028.
As part of the deal, the E.U. accepted a 15 percent percent tariff rate.
A separate agreement was struck with Japan, which pledged $550 billion in investments aimed at rebuilding and expanding key American industries.
Japan also agreed to open its markets further to U.S. exports and, like the E.U., accepted a baseline 15 percent tariff rate.
Republicans are continuing to rally behind the president’s hardline stance.
Texas Senator Ted Cruz called the strategy a ‘big win’.
‘I think it’s exactly the right approach,’ Cruz said. ‘It’s what I have been urging the president to do, and I think the successes he’s winning are big wins for America.’
Seemingly mocking Democrats’ warnings of economic turmoil, and quoting the film Casa Blanca, Cruz added, ‘I’m shocked, shocked that Democrats are rooting for the economy to do badly under President Trump.’
‘It’d be nice if some Democrats would put their partisan hatred for Trump aside and actually start working together for American workers and American jobs. Unfortunately, I don’t see a whole lot of Democrats interested in doing that right now,’ he said.
Louisiana Senator John Kennedy praised the E.U. deal and said he hopes it leads to what he calls ‘ideal reciprocity’.
‘Clearly, the president got a good deal from one perspective. The Europeans just caved, they did. Fifteen percent tariffs on them, zero on us, commitment to invest in our country,’ Kennedy said.
‘But the part of the deal I like the most – the E.U. and the president agreed that a whole bunch of goods would be tariff-free. That is, no American tariffs and no E.U. tariffs.’
‘Let the free enterprise system work. May the best product at the best price win,’ Kennedy added. ‘That, to me, would be the perfect situation.’