讀後心得

President Trump announced a new round of tariffs on the 2nd, triggering global economic turmoil and a significant drop in the US stock market. Texas Republican Senator Cruz expressed rare concern, warning that these tariffs could pose devastating risks to the US economy, potentially affecting next year's midterm elections. He pointed out that if the trade war continues, it will drive up inflation and harm US employment. Cruz referenced Texas's vulnerability in the trade war and revealed that some businesses might significantly raise prices due to the tariffs. Although he supports Trump in trade negotiations, he believes that the business community underestimates the long-term nature of Trump's tariff policies.

President Trump announced reciprocal tariff measures on the 2nd, causing shockwaves in global financial markets and leading to a significant drop in U.S. stocks. In response, Texas Republican Senator Ted Cruz, a long-time supporter of Trump, issued a rare warning, believing that the new wave of tariffs could pose "devastating risks" to the U.S. economy and potentially deal a blow to the Republican Party in next year's midterm elections. According to reports, Cruz mentioned in a podcast on the 4th that if the trade war continues, it could trigger inflation, disrupt financial markets, and severely affect U.S. jobs and the economy. He stated, "If we impose tariffs on all countries, it will destroy domestic job opportunities and essentially harm the U.S. economy." This statement comes as U.S. stocks dropped for two consecutive days, with the Dow Jones Industrial Average plummeting nearly 500 points, exacerbating the uncertainty about the economic outlook and deepening divisions within the party.

Cruz's stance is also aligned with four Republican senators who have joined forces with Democrats this week to push for an end to Trump's old tariffs on Canada. Additionally, a bipartisan group of senators introduced a proposal on the 3rd for new legislation requiring that any future tariffs must be approved by Congress, which includes senior Republican Senator Chuck Grassley. Cruz stated that he is carefully studying the proposal. As a representative of Texas, Cruz emphasized the high-risk position Texas holds in the trade war. According to data from the Dallas Federal Reserve Bank, Texas accounts for about 16% of national trade, the highest in the country, making it extremely vulnerable in a trade war. Furthermore, one of Texas's key industries—oil—has also been affected, as the Organization of the Petroleum Exporting Countries and its allies announced unexpectedly high production increases, resulting in a sharp decline in oil prices, which further fell on the 4th due to expectations of economic slowdown. The automotive industry is similarly sounding alarms. Cruz revealed that a senior executive from a well-known car manufacturer told him that if the tariffs are implemented as planned, the average model price from that manufacturer would increase by $4,500, expected to reflect in prices as early as June.

Cruz stated, "If Trump can negotiate lower global trade barriers through tariffs and then withdraw those tariffs, it would be a huge success. We all know Trump’s negotiation style; he usually attacks first and then sits down to negotiate, and this attack is his opening move." However, he also admitted that the business community generally underestimates the White House's determination to implement tariff policies in the long term. He mentioned, "The business community repeatedly underestimates Trump and his administration, viewing tariffs as a lasting economic policy tool."