US lawmakers critical of Trump tariffs, say it will derail economy

The tariffs are just taxes on American businesses and consumers, while providing no benefit to the economy, critics of Trump's policies say.

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The tariffs imposed by US President Donald Trump and the 10% global tariff announced by Trump on Friday have drawn critical reactions from US lawmakers, Washington, DC-based think tanks and attorneys.

US Senator Rand Paul said that the Trump tariffs are a tax increase on “working families and small businesses,” characterizing them as a net negative on the economy.

“Those tariffs weren’t about security — they were a tax on families and small businesses to bankroll a reckless trade war,” US Congressperson Ro Khanna said.

On Friday, the US Supreme Court (SCOTUS) struck down Trump’s authority to levy tariffs under the IEEPA, which Trump responded to by announcing new 10% global tariffs.

Scott Lincicome, Vice President of Cato’s Herbert A. Stiefel Center for Trade Policy Studies, a Washington DC-based think tank, was also critical of the tariffs. In comments shared with Cointelegraph, he said:

Trump’s tariffs typically had a negative impact on crypto markets and other risk-on assets. However, crypto prices stayed relatively stable amid the most recent round of tariffs, with Bitcoin’s (BTC) price rising by about 3% after the announcement.

Related: Bitcoin ignores US Supreme Court Trump tariff strike amid talk of $150B refund

"Effective immediately, all national security tariffs, Section 232, and existing Section 301 tariffs, remain in place, and in full force and effect. Today, I will sign an order to impose a 10% global tariff,” Trump announced on Friday.

The new 10% global tariff will be imposed on top of already existing tariff rates, Trump added. However, the legal statutes Trump cited are limited in scope, according to pro-crypto attorney Adam Cochran.

“The law he is using only allows this to be on countries we have a deficit with, for a set period of 150 days, and at a capped percent,” he said.

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