U.S. Senator Ted Cruz, a Republican leader and staunch Trump ally, has raised alarms over escalating global trade tensions caused by former President Donald Trump's tariff policies, warning of severe consequences for American consumers and industries. Speaking publicly on Friday, Cruz emphasized that reciprocal tariffs from other countries could trigger "the most dramatic tax hike in a long, long time," risking economic instability.
Auto Industry Braces for Price Surge
Cruz revealed private discussions with executives from one of Detroit's "Big Three" automakers—GM, Ford, or Chrysler—who warned that tariffs could inflate car prices by an average of $4,500 as early as June. Foreign automakers may gain an unintended advantage, he noted, due to supply chain complexities disadvantaging U.S. manufacturers.
Political Reckoning Looms
The Texas senator cautioned that prolonged tariff wars could destabilize the U.S. economy ahead of the 2026 midterm elections, predicting a "bloodbath" for Republicans if a recession occurs. His remarks highlight growing unease within the GOP, with some lawmakers reportedly exploring legislation to strengthen congressional oversight of future tariffs.
Balancing Support and Criticism
While reiterating his support for Trump, Cruz openly criticized tariffs as counterproductive, framing the debate as a pivotal moment for U.S. trade policy. Analysts suggest such internal dissent underscores deepening divisions over America's role in the global economy.
