Relief sweeps Capitol Hill after Trump's tariff U-turn
Republican lawmakers exhaled in relief Wednesday after President Donald Trump announced he was pausing most of his sweeping "reciprocal" tariffs for 90 days.
While Trump left a lower, 10 percent global tariff in place and escalated his confrontation with China — upping those duties to 125 percent — Republicans were otherwise pleased with the apparent retreat a week after Trump's Rose Garden announcement threw the financial and political worlds into a frenzy.
"I think jubilation is too strong a word, but ... it was positive," said Sen. John Cornyn of Texas, who described fellow senators checking in on the balances of their retirement account as stocks surged. "I think everybody can sort of identify with that going up."
They were less pleased about how they learned the news. That would be from a Truth Social post — not from the two high-level administration officials, U.S. Trade Representative Jamieson Greer and Deputy Treasury Secretary Michael Faulkender, who were addressing separate groups of lawmakers on the Hill on Wednesday as the news broke. They showed no indication they knew the announcement was coming.
Inside a Republican Study Committee lunch, Faulkender pushed House members to back the GOP budget plan set for a House vote Wednesday when news broke of the tariff pause. Members wanted to know more about the administration's end game, but he did not have answers, attendees said — nor did Greer, who was in front of the House Ways and Means Committee for his second straight day of congressional testimony.
Greer, who spent Tuesday and Wednesday morning defending the tariff rollout and insisting the president shouldn't let the stock market drive his economic decisions, told the committee that he knew a pause on the tariffs was under discussion when he entered the hearing in the morning but that he only learned of the pause in real time.
'I understand it's 90 days, I haven't spoken to the president since I've been in this hearing,' Greer said.
Lawmakers also appeared to have little insight into what, exactly, changed Trump's mind. Several lawmakers pointed to Trump, himself, saying he was ultimately responsible for setting the policy. Sen. Thom Tillis (R-N.C.) said he's been seeking information from the administration on who, ultimately, is helping to shape Trump's plan.
For weeks, Republican senators have fretted about the tariffs, but few have offered any real pushback to the administration, instead holding out hope that Trump would eventually ramp down the pressure. Those lawmakers embraced Trump's announcement Wednesday afternoon.
'As he promised, he's going to use these tariffs to leverage good, strong trade agreements, just like he got finished before in Trump 45,' said Sen. Roger Marshall (R-Kan.). 'So I'm excited.'
But while Trump hit pause on the highest tariff rates since the 1930s, import duties still remain far higher than when he took office. Along with the 10 percent global tariff and 125 percent tariff on China, Trump has maintained 25 percent tariffs on steel and aluminum and automobiles — and has promised future tariffs on pharmaceuticals and semiconductors.
Tillis said Trump's move Wednesday was "smart because it eliminates some of the downside speculation right now." But, he added, "it doesn't eliminate any of the uncertainty unless you start seeing a deal float pretty quickly over the next couple of days with some of the major trading partners.'
Sen. Rand Paul (R-Ky.), one of the most vocal opponents of tariffs in the Senate, was more blunt: '10 percent tariffs are bad, but they're better than 60 percent.'
Two tariff-skeptical South Dakota Republicans did their best to present the U-turn as part of a coherent Trump administration policy that has otherwise escaped most observers. Rep. Dusty Johnson said he was "not opposed at all to using tariffs as a negotiating tool — seems like that's what the White House is doing."
Added Senate Majority Leader John Thune: "I think they are checking it out and seeing what works and if they are kind of getting the response that they hope to get. I think it's a work in progress but it sounds like they are getting some good results."
"Behold the 'Art of the Deal,'" Speaker Mike Johnson posted on X.
Privately, though, others in GOP saw little method to the madness. 'What a shitshow," said a conservative House Republican granted anonymity to react candidly to the pause, "and after [Greer] just testified how we need the tariffs?'
Samuel Benson contributed to this report.
CORRECTION: A previous version of this report misidentified a senator commenting on Trump's tariff shift. It was Sen. Roger Marshall of Kansas.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fox News
4 minutes ago
- Fox News
GOP Senator Ron Johnson says he's 'trying to force reality' on DC
When it comes to the nation's federal government, GOP Sen. Ron Johnson of Wisconsin is "not a fan." He believes that it "causes or exacerbates more problems than it actually solves," telling Fox News Digital during an interview on Wednesday that the bulk of his oversight is "to expose how awful government is" in order to obtain "public support for reducing it, limiting its size, limiting its cost, limiting its influence over our lives." "As our federal government grows, our freedoms recede," he said. "You see what the federal government does, how it wastes money." The national debt has ballooned to the eye-watering sum of more than $36 trillion, with lawmakers and presidents from both parties presiding over the deficit spending that has led the nation to this point. Johnson said he's "trying to force reality" upon everyone in the nation's capital, regardless of whether they want to face that reality. He said for decades the nation has been suffering a "chronic debt crisis," illustrating the dramatic decline in the value of the U.S. dollar by noting that "the dollar you held back in 1998 is now only worth $0.51 cents," while "a dollar you held in … 2019 is only worth $0.80 cents." The senator referred to inflation as "the silent tax." But he's certainly not staying silent. Johnson indicated that the elected leaders are mortgaging the future of American children, but "don't talk about it." "I'm forcing everybody to look at it," he said, noting that his "primary role" is to force "acknowledgment of our problem." But as keenly as Johnson advocates the idea of slashing the sprawling tentacles of the massive federal bureaucracy, right now he's just pushing to pare spending down to pre-pandemic levels. The conservative fiscal hawk has been making headlines for taking a stand against the Trump-backed One Big Beautiful Bill Act that cleared the GOP-controlled House of Representatives last month. But Johnson told Fox News Digital that he actually likes a lot of the measure. "I'm really not critical of the bill as far as it goes," Johnson explained, noting that he's a "big supporter" of much of what's in it, though he noted that has not read all of it — the measure is more than 1,000 pages long. "My main beef is it just doesn't go far enough," he said, noting that after the COVID-19 pandemic Democrats failed to return to pre-COVID spending and deficit levels. The Congressional Budget Office's estimated budgetary impact for the measure indicates that the net effect on the deficit would be a more than $2.4 trillion increase over the fiscal years 2025-2034. But White House Office of Management and Budget Director Russ Vought has said the measure would decrease deficits. "The bill REDUCES deficits by $1.4 trillion over ten years when you adjust for CBO's one big gimmick--not using a realistic current policy baseline. It includes $1.7 trillion in mandatory savings, the most in history. If you care about deficits and debt, this bill dramatically improves the fiscal picture," Vought said in a post on X. Johnson also noted during the interview that there has not been a "reckoning" regarding the "abuse" at all levels of government during the COVID-19 pandemic. He noted that he does not refer to the COVID-19 jab as a vaccine. Instead, he referred to it as an "injection," asserting that it is "not a vaccine," and that it caused injuries and death. The senator said that he thinks the shots should have "black box warnings." The Centers for Disease Control and Prevention website states that the "CDC recommends a 2024-2025 COVID-19 vaccine for most adults ages 18 and older" and claims that the "vaccine helps protect you from severe illness, hospitalization, and death." Johnson, who has served in the Senate since 2011 and won election to a third term in 2022, said he'd prefer not to seek another term in office. "I don't covet this job," he said, noting that he wants to leverage his post to help save America and aid those who are "ignored by the system." While he's not ruling out another run, Johnson, who turned 70-years-old earlier this year, said he'd "be happy" to return to Oshkosh and "live a nice, peaceful life."
Hamilton Spectator
8 minutes ago
- Hamilton Spectator
Canadian premiers turn to New England governors for support on Trump tariffs
FREDERICTON - A group of Canadian premiers appear to be setting high expectations as they pursue negotiations with American governors to mitigate the impacts of United States-imposed tariffs on their economies. Premiers from New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Ontario, and Quebec's economic minister are scheduled to meet with New England governors on Monday in Boston. New Brunswick Premier Susan Holt said the premiers look to the New England governors for insights on how to deal with the White House and U.S. President Donald Trump. 'I mean, ideally, what we would get is every governor ... agreeing to articulate in loud and formal terms their objection to the tariffs to their administration,' Holt told reporters Thursday. 'If we can get everyone agreeing that the tariffs are negatively impacting Americans and passing that message on to the White House, that would be a win.' Holt also said she plans on raising 'critical' energy and infrastructure files. Massachusetts Gov. Maura Healey said last month that the leaders hope to discuss how they can work together and maintain economic relationships in the face of Trump's tariffs. 'Canada is Massachusetts' No. 1 trading partner,' she said in a May 5 statement. 'For generations, we have enjoyed a strong partnership and a healthy exchange of energy, lumber, dairy, cars and car parts, seafood and more. Our businesses and our residents all benefit from this relationship. But President Trump's tariffs are undermining this partnership, making it harder for businesses to keep their doors open, and increasing the cost of everything that the New England and Canadian people rely on.' Holt said New Brunswick supplies a lot of energy products to New England. 'I think 90 per cent of the cars in Boston are driving with gas that comes from the Irving refinery and us. They are keen to make sure we will continue to be a reliable supplier of energy to them,' she said. 'We see the U.S. as a market to sell energy in a way that is profitable and beneficial to New Brunswick.' Healey said an analysis showed that tariffs on Canadian energy would raise gas and heating oil prices by over 30 cents a gallon and could cost nearly $1.4 billion a year for people in Massachusetts, and $3.4 billion for those in the New England area. Ontario is also looking to discuss energy and minerals with the U.S., said Grace Lee, spokeswoman for Premier Doug Ford. 'Ontario is proud to have one of the cleanest and most reliable energy grids, alongside mineral rich areas ready for development and a highly skilled workforce that the U.S. needs and relies on,' she said in a statement. 'Premier Ford will advocate for his vision of Fortress Am-Can, a renewed strategic alliance that makes Canada and the U.S. the richest, most prosperous, safest and most secure two countries on the planet.' Prince Edward Island Premier Rob Lantz's office did not respond to a request for comment. Léa Fortin, spokeswoman for Quebec's economic minister Christopher Skeete, said the meeting is a chance to reiterate ties between Quebec and the United States, as well as the Atlantic provinces. Sonja Pomeroy, spokeswoman for Premier John Hogan said Newfoundland and Labrador exported approximately $4.5 billion of goods to the United States in 2023, representing 37 per cent of the province's total exports. For example, she said in any given year, 60 to 80 per cent of Newfoundland and Labrador's seafood exports go to the United States. So the meeting is an opportunity to reinforce the social and economic value of Canada's long relationship with the United States, she explained. 'Barriers to trade are bad for both national economies,' Pomeroy said. This report by The Canadian Press was first published June 13, 2025. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
San Francisco Chronicle
10 minutes ago
- San Francisco Chronicle
Oil prices surge and markets retreat after Israel's strike on Iran
HONG KONG (AP) — Oil prices surged and Asian shares were lower Friday after Israel struck Iranian nuclear and military targets in an attack that raised the risk of all-out war between them. U.S. benchmark crude oil rose by $3.93, or 5.8%, to $71.97 per barrel. Brent crude, the international standard, increased by $3.82 to $73.18 per barrel. In share trading, Tokyo's Nikkei 225 fell 0.9% to 37,834.25 while the Kospi in Seoul edged 0.9% lower to 2,894.62. Hong Kong's Hang Seng retreated 0.9% to 23,831.48 and the Shanghai Composite Index lost 0.7% to 3,378.76. Australia's S&P/ASX 200 drifted 0.2% lower to 8,547.40. 'An Israeli attack on Iran poses a top ten of our global risk, but Asian markets are expected to recover quickly as they have relatively limited exposure to the conflict and growing ties to unaffected Saudi Arabia and the UAE,' said Xu Tiachen of The Economist Intelligence. On Thursday, U.S. stock indexes ticked higher following another encouraging update on inflation across the country. The S&P 500 rose 0.4% to 6,045.26. The Dow Jones Industrial Average added 0.2% to 42,967.62, and the Nasdaq composite gained 0.2% to 19,662.48. Oracle jumped 13.3% after reporting stronger profit and revenue for the latest quarter than analysts expected. That helped markets offset a 4.8% loss for Boeing after an Air India plane crashed Thursday, killing more than 240 people. It was the first crash of a Boeing 787 Dreamliner, and the cause wasn't immediately known. Stocks broadly got some help from easing Treasury yields in the bond market following the latest update on inflation. Thursday's update said inflation at the wholesale level wasn't as bad last month as economists expected, and it followed a report on Wednesday saying something similar about the inflation that U.S. consumers are feeling. Wall Street took it as a signal that the Federal Reserve will have more leeway to cut interest rates later this year in order to give the economy a boost. The Federal Reserve has been hesitant to lower interest rates, and it's been on hold this year after cutting at the end of last year, because it's waiting to see how much President Donald Trump's tariffs will hurt the economy and raise inflation. While lower rates can goose the economy by encouraging businesses and households to borrow, they can also accelerate inflation. The yield on the 10-year Treasury fell to 4.35% from 4.41% late Wednesday and from roughly 4.80% early this year. Besides the inflation data, a separate report on jobless claims also helped to weigh on Treasury yields. It said slightly more U.S. workers applied for unemployment benefits last week than economists expected, and the total number remained at the highest level in eight months. That could be an indication of a rise in layoffs. The Fed's next meeting on interest rates is scheduled for next week, but the nearly unanimous expectation on Wall Street is that it will stand pat again. Traders are betting it's likely to begin cutting in September, according to data from CME Group. Trump's on-and-off tariffs have raised worries about higher inflation and a possible recession, which had sent the S&P 500 roughly 20% below its record a couple months ago. But stocks have since rallied nearly all the way back on hopes that Trump will lower his tariffs after reaching trade deals with other countries. Many of Trump's tariffs are on hold at the moment to give time for negotiations, but Trump added to the uncertainty late Wednesday when he suggested the United States could send letters to other countries at some point 'saying this is the deal. You can take it or you can leave it.'
