Ted Cruz Warns Trump Tariffs Could Lead To a 'Bloodbath' For Republicans In Midterm Elections

Republican Senator Ted Cruz is warning that the impact of President Donald Trump's tariffs could result in an electoral "bloodbath" for Republicans in next year's midterm elections.

In the latest episode of his podcast Verdict, Cruz said the tariffs pose "enormous risks" for the U.S. economy, as long-term levies would boost inflation and have a continued negative impact on markets.

The S&P 500 dropped almost 5% on Friday after plummeting 4.8% the day before, while the tech-heavy Nasdaq 100 plunged 4.5%, adding to Thursday's 6% drop. Should conditions continue down this path, Cruz said, Democrats could take back the Lower House and even the Senate, even if that scenario is less likely.

Cruz is among the Republicans speaking up against Trump's tariffs, already saying on Thursday that he is "not a fan" of levies. "If the result of yesterday's announcement is a lot of our trading partners across the globe dramatically reduce the tariffs they charge on U.S. goods and services, and the consequence of that is the U.S. government dramatically cuts the tariffs that were announced yesterday, that would be a great outcome," Cruz explained. "That would be good for America."

Cruz then relayed a potential negative outcome. "If the result is our trading partners jack up their tariffs and we have high tariffs everywhere, I think that is a bad outcome for America," Cruz continued before conceding that consumers will end up paying more as a result. "My hope is these tariffs are short lived and they serve as leverage to lower tariffs across the globe," he added.

Rand Paul is another Republican who has been criticizing tariffs. The Kentucky Senator took to Fox News to publish an opinion article in which he made the case for why the administration should abandon tariffs and continue building strong relationships with foreign partners.

"If you think eggs are expensive, just wait until the new tariffs hit cars. Goldman Sachs estimates tariffs on imported vehicles could raise prices by $5,000 to $15,000," Paul wrote. "That's because tariffs are taxes on foreign imports that are paid by American consumers. These tariffs apply to almost every conceivable product."

Other members of the GOP are taking concrete steps to address the measures. On Thursday, Sen. Chuck Grassley co-sponsored a bill that would require tariffs to be ratified by Congress within 60 days of their imposition. Should that not happen, they would expire.

Moreover, Paul, along with three other GOP senators, defied Trump and voted along Democratic senators to repeal tariffs levied against Canada.