Senate Commerce Chair Ted Cruz is warning about major risks for the American economy and its automotive industry thanks to President Donald Trump’s trade war, saying it could result in the biggest tax hike in a “long, long time.”
“I’m seeing a lot of Republican cheerleaders reflexively defending what the White House is doing,” Cruz said on his podcast Friday, but cautioned the administration’s latest actions could “hurt jobs and hurt America.”
Cruz added he is “not a fan” of tariffs.
The alarm bells from Cruz, a Texas Republican who has called himself Trump’s “strongest supporter” in the Senate, reflects growing unease among Republicans about Trump’s tariff crusade and the impact it could have on prices for consumers and, consequently, the GOP’s political prospects.
Some Republicans have signaled interest in legislation to strengthen Congress’ authority to approve future tariffs after Trump earlier this week unilaterally slapped tariffs between 10 percent and 50 percent on countries across the globe, following through on his promise to impose reciprocal tariffs on foreign trade partners.
Cruz has not signed on as a cosponsor of that bill, nor did he vote Wednesday on a resolution that would end a national emergency Trump used last month to justify tariffs on Canadian products. He also conceded that, if countries back off their tariffs in response to Trump’s moves, that could be “great” and strengthen American agriculture and manufacturing.
He went on to say, however, that if countries respond with reciprocal tariffs — which some like China already have — while Trump’s tariffs remain in place, that could be “terrible for America.”
Cruz continued, “if we’re in a scenario 30 days from now, 60 days from now, 90 days from now, with massive American tariffs, and massive tariffs on American goods in every other country on earth, that is a terrible outcome.”
His comments suggest the dam could be breaking among Republicans on this issue — even among those who consider themselves staunch Trump allies — as the economic and political fallout from the president’s trade war crystallizes.
Cruz, for instance, said Friday he spoke the night before to one of the “Big Three” U.S. automakers — generally considered to be GM, Ford and Chrysler — who said that the tariffs could raise average prices of their cars by $4,500. That could begin as early as June, Cruz said, explaining there’s a lag in the supply chain that means prices wouldn’t rise overnight.
“This U.S. car company told me they actually thought foreign car companies would benefit more than they would, because if you send it over here, you pay one tariff, whereas this guys are getting hit on each part that is going over,” Cruz said.
It could also hurt Republicans in midterm elections: “If we go into a recession — particularly a bad recession — 2026 in all likelihood, politically would be a bloodbath,” he cautioned. “The upside could be massive, but the downside could be massive.”
