President Donald Trump's tariffs of at least 10% on all imports, announced Wednesday, are a "bad idea and will bring a fierce blowback," and American voters "will gasp" when they see their 401(k) statements, according to Greg Valliere, chief U.S. policy strategist at AGF Investments.
In his Thursday morning newsletter, Valliere states that the tariffs have the potential "to devastate the Republican Party. Polls show the public overwhelmingly opposes the tariffs, and Trump’s standing on the economy — once his strong suit — is now plunging."
Roughly $1.7 trillion was erased from the S&P 500 Index at the start of trading on Thursday, Bloomberg reported.
The Hill reported Thursday morning that four Republican senators voted with Democrats on Wednesday for a resolution to undo President Trump’s 25% tariffs on Canadian imports, "dealing an embarrassing blow to Trump."
"The resolution expresses the sentiment of the Senate and doesn’t have the force of law, but its 51-48 passage is unwelcome news for the president on the very day he announced a host of new tariffs," The Hill said.
Suddenly, Valliere states, "there's a plausible chance" the Republicans could lose the House in the fall of 2026. "Republicans on Capitol Hill know this; they begged Trump to soften the tariffs but he made them even tougher."
Trump's "experiment with dramatically higher tariffs will be known for decades to come as a colossal failure," Valliere continues, with Trump and Elon Musk getting "most of the blame for this epic blunder, a self-inflicted wound which, ironically, will vilify trade protectionism for decades to come."
The likelihood of a recession "is growing," Valliere states, "yet the Federal Reserve is in no rush to cut rates — which is sure to enrage Trump. And he can’t count on immediate relief from fiscal stimulus, as Republicans bicker on what will be in the pending tax bill, which could bog down over its cost."
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