Ted Cruz warns of major risks for U.S. economy, Republicans due to Trump's tariffs

Ted Cruz, chairman of the U.S. Senate Commerce Committee and a veteran Republican from Texas, warned on Friday that if countries and regions around the world respond with reciprocal tariffs while President Donald Trump's tariffs remain in place, that could be "terrible for America" and result in the most dramatic tax hike in a "long, long time."

Despite describing himself as Trump's "strongest supporter" in the U.S. Senate, Cruz said he is "not a fan" of tariffs.

If countries and regions around the world cave to Trump's moves, that could be "great," said Cruz, but "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."

He said he spoke on Thursday night to one of the "Big Three" U.S. automakers, namely GM, Ford and Chrysler, who said that the tariffs could raise average prices of their cars by $4,500 from as early as June due to a lag in the supply chain.

"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 these guys are getting hit on each part that is going over (a border)," said the senator.

"If we go into a recession, particularly a bad recession, 2026 in all likelihood, politically would be a bloodbath," he said of the Republicans' prospects in the 2026 midterm elections.

Some Republicans are now signaling interest in legislation to enhance Congress' authority to approve future tariffs, according to a report from Politico.