讀後心得

President Trump announced reciprocal tariff measures on the 2nd, leading to turmoil in the global financial markets and a sharp decline in U.S. stocks. Texas Republican Senator Cruz notably warned that the new tariffs could pose "devastating risks" to the American economy and create a crisis for future midterm elections. He pointed out that if the trade war continues, it will drive up inflation and affect employment. Cruz emphasized that Texas is particularly vulnerable in the trade war, especially the oil industry is also affected. As the economic outlook remains uncertain, divisions within the party regarding Trump's tariff policy have emerged, with Cruz and several Republican senators pushing for Congress to approve future tariffs.

President Trump announced on the 2nd the implementation of reciprocal tariff measures, a decision that has raised widespread global concerns and dealt a heavy blow to the U.S. stock market. Texas Republican Senator Ted Cruz, a long-time supporter of Trump, unusually warned that the new wave of tariff policies could pose "devastating risks" to the U.S. economy and may even present a significant threat to the Republican Party in next year's midterm elections.

According to reports, Cruz pointed out in his personal podcast on the 4th that if the trade war continues, it will drive up inflation, disrupt financial markets, and severely impact U.S. jobs and the economy. He stated, "If we impose tariffs on all countries, it will severely harm domestic jobs and cause real damage to the U.S. economy." These comments came as the U.S. stock market fell sharply for two consecutive days. The Dow Jones Industrial Average dropped nearly 500 points, and the uncertainty surrounding the economic outlook has exacerbated divisions within the party.

Cruz's warnings resonate with four Republican senators who have joined Democrats this week in an attempt to terminate Trump's old tariffs on Canada. Additionally, a bipartisan group of senators introduced a new bill on the 3rd that proposes any future tariffs must be approved by Congress, with the participation of senior Republican senators. Cruz mentioned that he is keeping an eye on this proposal.

As a representative of Texas, Cruz specifically noted the high risks the state faces in trade. According to data from the Dallas Federal Reserve Bank, Texas accounts for about 16% of U.S. trade, ranking first in the nation, which makes it very vulnerable in a trade war. One of Texas's key industries—oil—is also facing impacts, as OPEC and its allies announced increases in production, leading to a sharp drop in oil prices, which further declined on the 4th due to expectations of an economic slowdown.

The automobile industry is similarly sounding the alarm. Cruz revealed that a senior executive from a well-known car manufacturer told him that if the tariffs are implemented as scheduled, the average price of their vehicles will increase by $4,500, and this change could be reflected in prices as early as June. Cruz stated, "If Trump can negotiate to lower global trade barriers through tariffs and then retract the tariffs, that would be a significant success. We all know Trump's negotiation style—he starts with a club and then sits down to negotiate, and this recent move is that club." However, he also confessed that the business community generally underestimates the White House's long-term determination regarding tariff policies. He emphasized, "The business community repeatedly underestimates Trump and his government's commitment to see tariffs as a permanent economic policy tool."