Sen. Ted Cruz (R-TX ) warned that U. S. buyers may incur if President Donald Trump’s tax plan doesn’t go as the White House expectations.
During a Thursday interview with Fox Business Network’s Larry Kudlow, the media network pitched a plan to give up to citizens revenue from Trump’s taxes. The proposed “tariff income”, Kudlow suggested, had provide “gigantic” benefits for taxpayers “out 10 ages”.
HOW COUNTRIES ARE RESPONDING TO TRUMP’S” LIBERATION DAY” Taxes
Cruz pushed up on the idea that levies may persist for up to a decade, saying he thinks it is” a mistake to assume that we will have higher taxes in perpetuity”.
” I don’t suppose that would be good monetary policy. I am not a fan of taxes”, the Texas legislator told Kudlow, saying he had quite cut taxes for people.
The best-case situation for the rough taxes Trump placed on nearly every country on Wednesday is that” they serve as leverage to lower taxes across the globe”, Cruz hoped. A “bad outcome”, he warned, is that overseas states respond to the financial charges with counter-tariffs of their own on U. S. items, which the lawmaker feared had “jack up” rates for American users.
” Time is going to tell in the next month or two or three what happens if the result of yesterday ‘s]tariffs ] 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”, Cruz said. ” That would be a great goal. That would be great for America”.
But, he added,” If the result is our trading partner jack up their tariffs and we have high tariffs everywhere, I think that is a bad outcome for America”.
” Taxes are a tax on users, and I’m not a fan of jacking up levies on British buyers so my hope is these taxes are short-lived and they serve as leverage to lower taxes across the globe”, Cruz concluded.
Cruz: Taxes are a tax on users, and I’m not a fan of jacking up fees on American customers. photograph. twitter.com/4H2A5kdHp7— Acyn ( @Acyn ) April 3, 2025
Trump has faced widespread censure, perhaps from some users of the GOP, for taxes against Canada, which were announced in February, and his later” Liberation Day” levies on many places, including best friends, that were announced on April 2. The stock market’s plunge and reportedly increased chances of recession have further stoked fears that the tariffs will lead to economic fallout.
WHICH PRODUCTS WILL SEE HIGHER PRICES FROM TRUMP’S TARIFFS ON CANADA AND MEXICO?
The White House has argued that tariffs can launch a new era of American wealth and prosperity, citing studies such as a 2024 analysis by the Coalition for a Prosperous America that concluded a global tariff of 10 % would grow the U. S. economy by$ 728 billion, create 2.8 million jobs, and increase real household incomes by 5.7 %.
Trump’s executive order outlining the” Liberation Day” tariffs justified his action due to” a national emergency arising from conditions reflected in large and persistent annual U. S. goods trade deficits, which have grown by over 40 percent in the past 5 years alone, reaching$ 1.2 trillion in 2024″.
