Senate vote follows economic contraction report amid tariff chaos

1/5/2025 5:45

The U.S. Senate was

scheduled to vote later on Wednesday on a resolution to block a

host of President Donald Trump's tariffs, hours after the

federal government reported that the nation's economy contracted

for the first time in three years amid the chaos of the

president's tariff policies.



The measure, introduced by Democratic Senator Ron Wyden as a

privileged resolution that requires a vote by the Republican-led

chamber, would terminate the national emergency that Trump

declared as the basis for 10% global tariffs on U.S. trading

partners and higher reciprocal tariffs on 57 trading partners

including the European Union.

At least two Republicans were expected to back the resolution.

Just weeks ago, four Senate Republicans joined Democrats to pass

a similar bill to terminate new tariffs on Canada. Republicans

currently hold a 53-47 majority.



"I don't expect a big difference from what we saw last

time," Senate Majority Leader John Thune told reporters.



The resolution is co-sponsored by Republican Senator Rand

Paul of Kentucky, an outspoken critic of Trump's tariff policy.

Senator Susan Collins also said she intends to support the

measure.



"It's not perfect. I think it's too broad. But it sends the

message that I want to send - that we really need to be far more

discriminatory in imposing these tariffs and not treat allies

like Canada the way we treat adversaries like China," Collins,

of Maine, told reporters.



Wyden said many Republicans may not back his measure for

fear of being attacked by Trump.



"They can side with their constituents who feel like these

tariffs are hitting them like a hammer. Or they can say, 'Well,

Donald Trump might be mean to me, and so I'm not going to vote

in favor of it,'" the Oregon Democrat said.

The earlier measure, which had multiple Republican sponsors,

went nowhere in the Republican-controlled House of

Representatives, which last month blocked the ability of

Congress to move quickly to challenge Trump's tariffs.



The White House threatened to veto the resolution on Monday,

saying it would undermine national and economic security.



The Commerce Department reported on Wednesday that the U.S.

economy decreased at a 0.3% annualized rate in the first three

months of 2025, the first decline since the first quarter of

2022, amid a flood of imports as businesses raced to avoid

higher costs from tariffs.



The economic report, which provided the first tangible

evidence of the economic effects of the Trump tariffs, followed

weeks of turmoil for U.S. securities markets and the dollar

spawned by fears of rising prices and disrupted trade relations

with major partners including Canada and Mexico.