讀後心得

On the 2nd, President Trump announced new tariff measures, triggering global economic unease and a sharp decline in the U.S. stock market. Texas Republican Senator Cruz spoke out rarely, warning that the new wave of tariffs would have a devastating impact on the U.S. economy and could lead to serious losses for the Republican Party in the midterm elections. He pointed out in a podcast that a prolonged trade war would drive up inflation, disrupt financial markets, and severely damage U.S. jobs and the economy, especially considering Texas’s vulnerability as a major trade hub. Additionally, Cruz mentioned a well-known car manufacturer anticipated that tariffs would lead to a rise in car prices by $4,500. Nevertheless, he hopes that Trump can negotiate to lower trade barriers and withdraw the tariffs, but also emphasized that the business sector underestimates Trump’s determination to enforce tariff policies in the long run.

President Trump announced retaliatory tariff measures on the 2nd, a decision that sparked global concern and caused a significant drop in the U.S. stock market. Texas Republican Senator Ted Cruz, who has long supported Trump, unusually issued a warning, indicating that these new tariffs could pose "devastating risks" to the U.S. economy and even present major challenges for the Republican Party in next year's midterm elections.

According to reports, Cruz mentioned on his personal podcast on the 4th that if this trade war continues to escalate, it will drive up inflation, disrupt financial markets, and severely impact jobs and the economy in the U.S. He emphasized, "If we impose tariffs on all countries, it will not only destroy domestic jobs but will truly harm the U.S. economy." This statement came as the U.S. stock market had declined for two consecutive days, with the Dow Jones Industrial Average plummeting nearly 500 points, raising the uncertainty of economic prospects and further exacerbating divisions within the party.

Cruz's perspective aligns with four Republican senators who joined Democrats this Thursday in an attempt to end Trump's stance on old tariffs against Canada. Additionally, a bipartisan group of senators introduced a new bill on the 3rd, advocating that any future tariffs require congressional approval, which includes senior Republican senators. Cruz stated that he is also studying this proposal.

As a representative of Texas, Cruz particularly emphasized the state's high-risk position. According to data from the Dallas Federal Reserve, Texas accounts for about 16% of U.S. trade, making it especially vulnerable in a trade war. Furthermore, Texas's key industry—oil—is also being impacted, as OPEC and its allies recently announced production increases beyond expectations, leading to a sharp drop in oil prices amid expectations of an economic slowdown.

The automotive industry is similarly raising alarms. Cruz revealed that a senior executive from a well-known car manufacturer told him that if tariffs are implemented as planned, their vehicles will increase in price by an average of $4,500, with this likely reflected in retail prices as soon as June. Cruz noted, "If Trump can use tariffs to negotiate lower global trade barriers and then withdraw the tariffs, that would be a tremendous success. We all know that Trump's negotiation style is to apply pressure first and then negotiate, and yesterday's action was a form of pressure." However, he also admitted that the business community generally underestimates the White House's long-term intentions regarding tariff policies, and pointed out, "The business sector repeatedly underestimates Trump's and his administration's determination to view tariffs as a long-term economic policy tool."