Even the strongest bonds can snap under pressure.
Following ten weeks of rapid-fire executive orders and unpredictable eruptions targeting our economic and military partners, it appears that even some of the President's supporters in Congress have begun to feel disillusioned.
On Wednesday, President Donald Trump designated April 2, 2025, as Liberation Day. He also imposed a series of "retaliatory" tariffs on almost every nation across the globe (including countries). with no individuals or administrations to impose tariffs on the U.S.)
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Trump positioned himself as a reluctant and merciful aggressor in this trade war.
We will impose tariffs at roughly half of what they've been charging us, so these won't be fully reciprocated," Trump stated on Wednesday. "I could have gone with full reciprocity, but that would have been difficult for many nations, and we decided against doing so.
Despite this, the market reaction was rather unimpressed.
On Thursday, the Dow Jones Industrial Average decreased by approximately 3%, the S&P 500 went down by 4%, and the Nasdaq saw a decline of over 5%.
The U.S. Congress speaks out on tariffs.
On Thursday, Senator Chuck Grassley (IA), one of the leading Republicans in Congress, started working on a bill aimed at curbing Trump's tariffs.
The Trade Review Act of 2025 mandates that Congress must examine any new tariffs introduced by Trump or any subsequent president within a 48-hour timeframe.
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As stated in the bill, "The President must provide Congress with a notification about the implementation or enhancement of the tariff, which should include an elucidation of the rationale behind imposing or raising the tariff; along with an evaluation of how setting or boosting the tariff might affect U.S. companies and consumers."
Besides setting rules for upcoming tariffs, the bill mandates that the tariffs recently enforced by Trump must lapse within 60 days unless they are examined and sanctioned by Congress.
If a joint resolution of disapproval regarding a tariff is passed into legislation pursuant to subsection (e) by Congress, the tariff will no longer be effective, the bill states .
Will Congress block the tariffs?
The legislation proposed by Grassley, co-introduced with Democratic Senator Maria Cantwell from Washington state, represents one of the biggest challenges posed by the Republican-led Senate to President Donald Trump’s policy agenda.
Grassley comes from a state that will be deeply impacted should the trade war persist.
According to data from LendingTree, Iowa imports approximately $2.7 billion worth of products, which constitutes 22% of all its imported goods, solely from the European Union. Additionally, the state exported $2.2 billion worth of items to the EU each year, accounting for 13% of its overall exports. Trump’s tariff rate on EU goods stands at 20%.
That pertains only to the EU; the biggest buyer of goods from this state is actually Canada.
In 2024, Iowa sent $5 billion worth of products to Canada. according To the federal government, this represents approximately 30% of the state's overall total. Mexico came in second place with $3.2 billion worth of merchandise exported.
In 2022, more than 3,000 businesses in Iowa shipped products overseas, with 81% of these being small to medium-sized enterprises employing less than 500 people each.
Associated: Trump's tariff actions pose significant dangers for all
However, there is minimal likelihood of this bill becoming law because President Donald Trump would need to approve it personally.
A presidential veto can only be overridden with a two-thirds majority vote in both the Senate and the House of Representatives.
However, Grassley is not the sole Republican bringing attention to this matter.
"I believe there's merit in incorporating congressional oversight," Republican Senator Thom Tillis from North Carolina stated. Politico .
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