US Lawmakers Warn Trump Tariffs Could Harm Economy as Legal Battle Intensifies

Fresh tariffs announced by Donald Trump are drawing sharp criticism from lawmakers and trade policy analysts who argue the measures could slow economic growth and raise costs for American households.

The administration recently introduced a 10% global tariff, following earlier trade actions that remain in place under Section 232 and Section 301 authorities. The move came shortly after the U.S. Supreme Court limited the White House’s ability to use emergency economic powers to justify broad tariff policies.

Senator Rand Paul described the tariffs as a tax increase that would ultimately be paid by working families and small businesses. Representative Ro Khanna echoed similar concerns, arguing the measures risk escalating trade tensions while offering limited domestic benefit.

Legal Limits on Presidential Tariff Authority

Trade experts note that alternative statutes cited by the administration may restrict the scope and duration of the new tariffs. Analysts from the Cato Institute have warned that sustained tariff escalation could strain foreign relations and dampen business investment.

Market Reaction Remains Muted

Despite political backlash, financial markets showed limited volatility. Bitcoin edged slightly higher following the announcement, while broader digital asset indices remained largely unchanged, signaling cautious but stable investor sentiment.

Disclaimer

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