Financial Times: Elizabeth Warren: It falls to Congress to unravel Trump’s reckless tariffs

Since President Donald Trump announced his massive tariffs, the stock market has experienced its biggest decline since the start of the Covid-19 pandemic. Economic experts are warning that a recession is likely. Consumer confidence has tumbled to levels not seen since the height of the pandemic. Some big companies and local businesses are already handing out pink slips. Tens of millions of Americans are anxiously wondering what will happen to their jobs, their retirement savings and their futures.

But, unlike 2020, today’s unfolding turmoil is not triggered by a deadly virus; instead, this crisis has been created by the president of the United States. The economy is tumbling because Trump slapped new tariffs on pretty much every country in the world for products they sell to the US — with little rhyme or reason. His tariffs won’t promote jobs and industry at home. They won’t build resilient supply chains. And they definitely won’t level the playing field for American workers. Instead, Trump’s plan will fracture supply chains, halt new investments and drive up unemployment. As Federal Reserve chair Jay Powell noted, inflation will probably rise, and that will make life more unaffordable for working families everywhere.

Every economic indicator is flashing red, but we still have time to stave off a full-blown crisis and limit the damage to come. The president has dug in on his disastrous plan, and his Treasury secretary, Scott Bessent, is too busy spinning tales to do his job and prevent the fallout. So it now falls to Congress to contain the damage. 

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