US lawmakers and policy experts are sharply criticizing President Donald Trump's recent tariff announcements, warning of significant negative impacts on the American economy. Senator Rand Paul characterized the tariffs as a tax increase on working families and small businesses, stating they are a net negative.
Congressperson Ro Khanna echoed this sentiment, calling the tariffs a "reckless trade war" rather than a security measure. These critiques follow a US Supreme Court ruling that struck down Trump's authority to levy tariffs under the IEEPA, a decision Trump reportedly circumvented by announcing new 10% global tariffs.
Scott Lincicome, Vice President at Cato's Herbert A. Stiefel Center for Trade Policy Studies, believes even without the IEEPA, higher tariffs will persist, damaging the economy and foreign relations. While past tariffs have negatively impacted crypto markets, Bitcoin prices saw a modest rise following the latest announcement. However, the legal scope of the new tariffs is reportedly limited by statute.
