Trump’s Tariff storm: Billions Pour In, But GOP Fears a 2026 ‘Bloodbath’ 

US President Donald Trump has reiterated his strong stance on implementing reciprocal tariffs, particularly targeting China and other major trade partners, citing substantial trade imbalances. Speaking aboard Air Force One, Trump said the United States has a “tremendous deficit problem with China,” justifying the recently introduced tariffs by stating, “We’re not going to lose a trillion dollars for the privilege of buying pencils from China.” He claimed China is suffering economic consequences due to the US tariffs, emphasizing that “everyone knows we’re right.”

Trump acknowledged the volatility in financial markets triggered by the tariff policy, stating, “With the tariffs that I’ve already instituted… our country has gotten a lot stronger.” He further added that although the markets may experience short-term losses, “sometimes you have to take medicine to fix something.” He projected that the US would ultimately become the “most dominant country economically in the world.”

Addressing the concerns around a possible downturn, Trump took aim at former President Joe Biden, blaming him for the current economic challenges and accusing previous administrations of allowing other nations to exploit the US. He pointed out that companies and jobs were relocated abroad due to poor trade leadership, stressing, “We’re not going to do it now.” According to Trump, the new tariffs are already yielding financial benefits, with “hundreds of millions of dollars pouring into our country on a monthly basis.”

Meanwhile, pro-Trump Senator Ted Cruz raised alarms about the long-term political risks of escalating tariffs. Speaking on his podcast ‘Verdict,’ Cruz warned that a trade war could significantly harm the US economy and lead to a political “bloodbath” in 2026, with potential Democratic control of both chambers of Congress. He criticized Republicans who “reflexively” support the tariffs and expressed concern that some in the administration want tariffs to continue indefinitely. Cruz cautioned that if a deep recession were to occur, it would severely damage the Republican Party’s prospects.

The new tariff policy was officially announced by President Trump on April 2. His administration is implementing widespread import duties on countries with large trade surpluses with the US. The goal, as stated by Trump, is to promote fair and reciprocal trade. The tariffs target both monetary and non-monetary barriers, including subsidies and VAT systems.

According to the announced rates, China now faces a 34% tariff on its exports to the US, while the European Union is subject to 20%. Vietnam is impacted with a 46% rate, followed by Taiwan (32%), Japan (24%), India (26%), the UK (10%), Bangladesh (37%), Pakistan (29%), Sri Lanka (44%), and Israel (17%). From April 9, countries with the highest trade deficits with the US, including India, will face individualised, elevated tariffs.

Trump also emphasized the scale of the trade deficits with major partners. In 2024, the US goods trade deficit with China reached $295.4 billion, a 5.8% increase from 2023. Similarly, the deficit with the European Union rose by nearly 13% to $235.6 billion. On his social media platform Truth Social, Trump stated that the “only way this problem can be cured is with tariffs,” describing them as a “beautiful thing” for the US economy.

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