Trump's Liberation Day tariffs slapped down by the Senate in blistering rebuke as markets tank

The Senate delivered a sharp rebuke to President Trump's so-called 'Liberation Day' when senators voted on a resolution to undo his tariffs on Canada. 

The vote came down 51 to 48 with four Republicans joining ever Democrat to vote for the resolution. But the measure is not expected to move forward in the House.

It came after the president spoke Wednesday afternoon at the White House where he announced 10 percent baseline tariffs for all countries which will take effect April 5.

The U.S. will also impose reciprocal tariffs of approximately half the rates of each country's tariffs on the U.S. and other perceived barriers. Those reciprocal tariffs will take effect April 9.

As the world braces for what comes next, stocks plunged.

Heading into Wednesday, even Republican lawmakers were not clued in on the details until they were revealed by the president. 

Trump had previously announced 25 percent tariffs on nearly all Canadian imports to the U.S. but temporarily delayed them. 

Even with the new tariffs announced Wednesday, the rates on Canada and Mexico would remain at 25 percent, according to the White House.

The resolution on Wednesday was to overturn the emergency declaration Trump signed in February to impose the tariffs on the U.S. northern neighbors. 

The president claimed Canada and Mexico were not doing enough to stop the flow of fentanyl from flowing into the U.S. but only a small fraction of the drugs come across the northern border. 

Senator Tim Kaine (D-Va.) along with Senators Amy Klobuchar (D-Minn.) and Mark Warner (D-Va.) introduced the legislation to undo Trump's tariffs on Canada last week. 

Senator Rand Paul (R-Ky.), who has been a vocal critic of the president's tariff plans, also co-sponsored the bill. 

Senators Susan Collins (R-Maine) and Lisa Murkowski (R-Alaska) indicated they was leaning toward supporting it ahead of the vote.

Kaine said Trump's emergency declaration is not about fentanyl but about tariffs. 

'It's about a national sales tax on American families,' Kaine said on Wednesday. 

He and other Democrats have accused the president of wanting to use the tariff revenue to give tax cuts to billionaires.

'We need to stand strong against a tax increase - the largest tax increase in American history on consumers. We need to stand strong for a strong relationship with a good ally Canada,' Kaine said earlier in the week.

The vote on the resolution was originally expected on Tuesday but it got pushed back to Wednesday as Senator Cory Booker held the floor for more than 25 hours in a record-setting speech against Trump.

Ahead of the vote, there was a level of unpredictability over whether Democrats would get enough Republican support to pass the legislation. 

But Kaine said early Wednesday that he had the support of Paul, Collins, Murkowski and Mitch McConnell (R-Ky.). With every Democrat, it was enough support pass the resolution. 

Trump overnight wrote a social media post urging Paul, Collins, Murkowski and McConnell to get onboard with his Canadian tariff push. 

'The Senate Bill is just a ploy of the Dems to show and expose the weakness of certain Republicans, namely these four, in that it is not going anywhere because the House will never approve it and I, as your President, will never sign it,' he wrote. 

But Paul continued to blast Trump's tariff policy on Wednesday.

'Tariffs on Canada will threaten us with a recession,' he told a group of reporters Wednesday.  'It's a terrible, terrible idea.'

Democrats have pushed back on tariffs on Canada as well as more broadly. Senate Minority Leader Schumer said the president was taking a 'sledgehammer' the to U.S. economy.

'President Trump is set to unleash the most reckless tsunami of tariffs Americans have seen in over half a century. Prices will rise on virtually every kind of product,' Schumer said Wednesday on the Senate floor. 

Later at a press conference, he acknowledged there are some specific tariffs in certain areas that make sense because the U.S. is being treated unfairly but slammed the administration's efforts.

'The kind of meat axe blunder bust approach that they use across the board on everything and in huge amounts, it's typical of this administration. They don't think things through,' Schumer said.

Senate Majority Leader John Thune (R-S.D.) on Wednesday spoke out against the resolution on the Senate floor ahead of the vote. 

'Ending this emergency declaration would tell the cartels that they should shift their focus to the [northern] border,' he claimed.

'So I urge my colleagues to oppose this resolution and ensure that President Trump has the tools he needs to combat the flow of fentanyl from all directions,' he continued.