讀後心得

President Trump announced reciprocal tariff measures on the 2nd, causing global economic instability and leading to a significant drop in US stock markets. Texas Republican Senator Cruz pointed out that these new tariffs could pose "devastating risks" to the US economy and trigger a crisis for the Republican Party in the midterm elections. In a podcast, he warned that if the trade war continues for a long time, it will affect inflation, financial markets, and employment situations. Furthermore, Cruz mentioned Texas's vulnerability in the trade war and noted that the tariffs would significantly increase car prices. He suggested that Trump should attempt to reduce trade barriers through negotiation, emphasizing that the risks of long-term tariffs should not be ignored.

President Trump announced on the 2nd the implementation of reciprocal tariff measures, a decision that caused a global uproar and led to a significant drop in the US stock market. In response, Trump's long-time ally, Texas Republican Senator Cruz, unusually warned that the new tariff policy could pose "devastating risks" to the US economy and might even put the Republican Party in jeopardy in next year's midterm elections.

According to reports, Cruz pointed out in a personal podcast released on the 4th that if the trade war continues, it will lead to rising inflation, financial market turmoil, and severe damage to US jobs and the economy. He emphasized, "If we impose tariffs on all countries, it will destroy domestic employment and truly harm the US economy." His statements coincide with a significant two-day drop in the stock market, where the Dow Jones index plummeted nearly 500 points at one point, and the uncertainty surrounding the economic outlook has also exacerbated divisions within the party.

Cruz's perspective reflects the fact that four Republican senators this week have joined forces with Democrats to attempt to terminate Trump’s old tariffs on Canada. Additionally, a bipartisan group of senators introduced new legislation on the 3rd that requires any future tariffs to be approved by Congress, which includes senior Republican senators. Cruz stated that he is also monitoring this proposal.

As a representative of Texas, Cruz specifically mentioned the high risks faced by the state. According to data from the Dallas Federal Reserve Bank, Texas accounts for about 16% of US trade, ranking first in the nation, making it particularly vulnerable in the trade war. One of Texas's major industries—oil—has also been impacted. With OPEC and its allies announcing unexpected production increases, oil prices plummeted, and on the 4th, prices further declined due to expectations of an economic slowdown.

The automotive industry has similarly raised alarms. Cruz revealed that a senior executive from a well-known car manufacturer told him that if tariffs go into effect as scheduled, the average price of the company’s vehicles will increase by $4,500, with this price hike expected to be reflected in retail prices as early as June. Cruz stated, "If Trump can use tariffs to negotiate lower global trade barriers and then withdraw the tariffs, that would be a home run. We all know Trump’s negotiation style is to apply pressure first, then negotiate, and yesterday's actions were indeed such pressure." However, he admitted that the business community generally underestimates the White House's determination to implement tariff policies long-term, saying, "The business sector repeatedly underestimates Trump's and his administration's commitment to treating tariffs as a permanent economic policy tool."