Politics

Republicans Warn Trump Tariffs May Be Hurting U.S. Economy

By Jake Beardslee · August 5, 2025

A growing number of Republicans on Capitol Hill are expressing unease about the state of the U.S. economy, as a disappointing jobs report coincides with President Trump’s latest tariff hikes on foreign imports.

The jobs report released Friday revised employment gains from May and June downward by 258,000. On the same day, Trump unveiled a new round of tariffs targeting countries like Canada and Brazil—moves that some GOP lawmakers believe are contributing to broader economic stagnation.

Senator Rand Paul (R-Ky.) remarked to The Hill, “It definitely is indicative of a weakened economy, an economy that’s not acting in a robust fashion.” Paul said the effects of tariffs typically lag behind implementation due to long-term contracts, but warned that “as their initial contracts change, their input price is higher [and] goods will go higher, too.”

Further fueling controversy, President Trump fired Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer following the release of the jobs data. Sen. Thom Tillis (R-N.C.) criticized the firing, telling The Hill, “If we start undermining [BLS] or people start losing their jobs because we don’t like the result, that’s a big boo-boo.”

Major U.S. companies are also feeling the pinch. Ford Motor Co. posted a $36 million net loss in Q2, projecting $2 billion in tariff-related costs for the year. Berkshire Hathaway reported a 4% earnings decline, partly attributing it to trade policies. UPS and Whirlpool both reported disappointing earnings, with UPS withdrawing forward guidance and Whirlpool reducing its dividend payout.

While some GOP lawmakers like Sen. Ted Cruz (R-Texas) had previously supported tariffs as a short-term negotiation tool, Cruz has said he is “not a fan of tariffs” and hopes they “are short-lived.”

National Economic Council Director Kevin Hassett appeared to counter that optimism during a recent NBC interview, saying many tariff rates are “final deals” and would not be adjusted even if markets weaken.