By Daily Mail (U.S.) | Created at 2025-04-03 21:37:24 | Updated at 2025-04-04 17:19:44
21 hours ago
A Republican senator has a dire warning about what Donald Trump's new tariffs may do to the U.S. economy.
Sen. Rand Paul, R-Ky., a noted libertarian, has been one of the few Republicans who have outspokenly opposed the president's new batch of tariffs.
Paul has been decrying the impacts the new policy may have on the U.S. economy for months now. He first warned of the president's protectionist policies in the fall.
Now he is warning that the tariffs may also lead to political annihilation for Republicans.
Paul told reporters on Wednesday that, in addition to changes in markets, tariffs have also 'led to political decimation.'
'When [former President William] McKinley most famously put tariffs on in 1890, they lost 50 percent of their seats in the national election,' The Kentucky Republican noted, bringing up the last time a president invoked such a sweeping tariff overhaul.
'When [Smoot-Hawley] put on their tariff in the early 1930s, we lost the House and the Senate for 60 years,' the senator continued, this time noting a congressionally-led tariff regime.
'So they're not only bad economically, they're bad politically,' Paul stated.
Sen. Rand Paul, R-Ky., has been rebuffing Trump's claim that the tariffs will help the U.S. Paul has repeatedly called the tariffs a tax on the American people
President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025
The president holds up an executive order enacting reciprocal tariffs
Paul took to the Senate floor on Wednesday to slam the new tariffs.
'Despite arguments to the contrary, Americans know tariffs are a tax they are going to have to pay,' the senator said. 'This is a tax, plain and simple.'
'Taxes should not be enacted by one person,' Paul said.
He was also one four GOP senators to vote on a resolution to undo Trump's 25 percent tariffs on Canada Wednesday evening.
Sens. Lisa Murkowski of Alaska, Susan Collins of Maine and Mitch McConnell of Kentucky also voted against the president's new economic regime against the U.S.'s northern neighbor.
The lawmakers advocated for different tariff rates between U.S. allies and adversaries.
They joined all Democrats to give the liberals a rare win in the Republican-controlled Senate.
'We're not at war with Canada,' Paul said following the vote. 'They're an ally that buys more of our stuff than almost any other country in the world.'
Canada purchased roughly $350 billion worth of goods from the U.S. last year, according to the United Nation's COMTRADE database. Conversely, the U.S. purchased over $410 billion worth of supplies from Canada in 2024.
Signs printed out for the White House event denoted the specific tariff rates that would be paid by other countries
A MAGA hat hangs in front of a board showing falling prices at the New York Stock Exchange
'With so much at stake globally, the last thing we need is to pick fights with the very friends with whom we should be working with to protect against China's predatory and unfair trade practices,' McConnell said in a statement after the vote.
Many major U.S. stock indexes were down on Thursday after Trump signed the tariffs into effect.
The Dow Jones, S&P 500 and the Nasdaq Composite were all trading lower after the new policy.
