Mr. President, Donald Trump is ruining the economy on purpose. He is ruining the economy on purpose. I am not sure if there has ever been an American President, let alone a Chief Executive of any country, that has ruined the economy on…
Mr. President, Donald Trump is ruining the economy on purpose. He is ruining the economy on purpose. I am not sure if there has ever been an American President, let alone a Chief Executive of any country, that has ruined the economy on purpose.
The stock market had its worst day in 5 years yesterday. I just checked before I delivered these remarks--just before, 5 minutes ago: 1,600 down on the Dow Jones, S&P down 5 percent, NASDAQ 4 percent, the Russell 5 percent.
What does that mean as a practical matter? It means if you spent all your life working and saving and investing and you are on the edge of retirement--let's say you have $312,000 plus your Social Security income, you just lost $30,000 in 2 days because of Donald Trump. Because of Donald Trump, you lost 10 percent of what you earned over a lifetime.
Now, for Howard Lutnick and Elon Musk and Donald Trump and everybody that surrounds him at Mar-a-Lago, they can ride this out. They can short it. They can buy crypto. They can do all kinds of wonderful things to make sure they can ride this out. Regular people cannot ride this out.
The dollar hit a 6-month low. Layoffs have already started. Consumers are cutting back on spending. By the way, the data is there--but also just talk to anybody, just talk to anybody about how they feel about spending right now--and the likelihood of a recession went up 20 percent in a day. JPMorgan now says it is more than 60 percent likely.
So what is this even for? Why are people so freaked out? Why is the entire world, from friends and partners to adversaries and enemies, scrambling to retaliate against the United States, the indispensable Nation? It is so that Donald Trump can raise trillions of dollars in revenue to pay for the biggest tax cuts for billionaires in the history of the planet.
Starting tomorrow, we will be paying more for everything--groceries, food, cars, homes, toys, electronics, everything you buy. Estimates have home prices ballooning by almost $20,000 per unit. Cars will cost $6,000 more, an iPhone, $250 more. Clothing prices will go up by roughly 20 percent. Also, what, we are going to be a textile manufacturer? That is our goal as a country is to make T-shirts and socks?
Workers will be laid off. But I guess it will all be worth it in the end because this is a pay-for. What does that mean? It means that in their big budget plan, they need to cut taxes for billionaires, but they don't have enough money to finance that. And so they are using tariff revenue to balance out the money that they are going to shovel to a bunch of billionaires.
Trump is very famous for having few firm, fixed political beliefs. He has changed his mind about just about everything but not on tariffs. He is a self-proclaimed tariff man. He has repeatedly said that the word ``tariff is the most beautiful word'' in the English language. For years, he lavished praise on 20th century tariffs, which, by the way, helped deepen the Great Depression. So he is very happy about all of this.
There should be no mistaking this is what he intends to do. This is one of the differences between Trump 1.0 and Trump 2.0. He is doing all the things--he is actually going through with it. This is not mean tweets and like normal behavior. This is all of the crazy stuff he is saying is now being effectuated as public policy, as economic policy, as fiscal policy.
He is going through with it. You can no longer be dismissive of these resistance types, these Democrats, these shrills, these partisans, these people who can't keep their head on straight, these people who just want to punish Donald Trump for saying, ``Man, that guy is kind of crazy. He is going to crash the economy.'' He is literally crashing the economy on purpose.
The idea that other countries will just graciously pay the tariffs is a fantasy, much like Trump's claim that Mexico would pay for the wall. In reality, it is American importers who pay the tariffs, and then they pass it on to consumers, which is exactly what happened the last time Trump tried to do this.
Economists who studied the tariffs that Trump imposed during the first term on certain goods from China found it was consumers--it was consumers--it was you that paid the price.
So here is roughly how it will work this time around. There is going to be math involved here. If these tariffs are expected to raise $6 trillion, as Trump says, that would mean collecting something like $600 billion every year over the next 10 years. Broken out by household, people are looking at $5,000 a year in added costs. I bet you Donald Trump doesn't know anyone personally--maybe he has met people, but in terms of the people he hangs out with, that he spends time with, that he likes, that he works with, he probably doesn't know anyone for whom $5,000 is an unmanageable increased cost. But I know a lot of people like that. In fact, a lot of people in my home State are like that. They cannot absorb a $5,000 increase in the cost of everything. And that is before you consider the hundreds of thousands of lost jobs and the devastation of small businesses and farmers and others.
One small business owner in Iowa put it this way:
Trump's calling it Liberation Day. Maybe something like,
Liberation Day: Liberated From Reality.
A farmer in Kansas agreed:
These tariffs are just absolutely bad news. They cause the
prices for everything that we buy to go up, and the price for
everything that we sell to go down.
Everything that we buy is more expensive. Everything we sell is cheaper. Does that sound like a smart economic plan? It is bad news any way you cut it, but even worse, more confusing, more idiotic, more infuriating when you look at how they arrived at these rates.
These are not actually reciprocal tariffs, reciprocal being essentially country X assesses tariffs in the amount of 15 percent, so we reciprocate, we do 15 percent back.
This is how they did it. They used a ``one size fits all'' formula to remake the global trading system. They took our trade surplus with any given country. The way you do it--to do reciprocal tariffs--is country X says 10 percent, we go back at 10 percent.
What they did is say: Let's take our trade surplus--which means what we export minus what we import--divided by total exports and then cut it in half. Cut it in half. Why didn't they cut it in a third, why didn't they do some coefficient other than 50 percent is like they wanted to keep it simple. I don't know. It is purely arbitrary.
We have an $18-billion trade deficit with Indonesia. We import $28 billion worth of goods from them--17.9 divided by 28 is 64. Divide that by 2 and you get 34, which is--surprise, surprise--exactly the rate that Trump set for Indonesia. Half of the differential between exports and imports literally makes no sense.
You have a bunch of economists right, left, and center going, ``WTF.'' I cannot believe--this is bad policy--but also childish, childish math.
The White House formula is so bonkers that the same economists that it pointed to as the basis for the rationale immediately were critical. ``They pulled two numbers out of thin air that perfectly canceled each other out. This
type of reduction analysis is very troubling and scares me,'' said economics professor Anson Soderbery, whose paper the White House cited. Even their sources are saying, ``Don't use my name to justify this nonsense.''
Another economist said that the White House had misunderstood his research which specifically cautioned against excessively high tariff rates like Trump's.
Making [rates] higher is a bad idea for the United States.
. . . We use supercomputers to find optimal tariffs. The
Trump administration seems to have taken a bit of a shortcut
there. Also, our results suggest that the EU should not be
tariffed, and yet they set high tariffs against them.
Finally, our range of optimal tariffs is substantially lower
than the ones the administration announced.
If you can believe it, we are in a situation where economists are using supercomputers to find optimal tariff rates while the President of the United States is using a formula--and I am not exaggerating-- that a fifth grader could solve.
Whether it is the Signal chat or this formula, this administration's incompetence is on display every day. It is why we now have tariffs in places like Heard Island and McDonald Islands where there are no living human beings, only penguins.
Or, as the New York Times noted, ``Trump's decision to put a 32 percent tariff on Switzerland stunned politicians and business leaders in the Alpine country. Switzerland has an open trade policy and recently abolished all industrial tariffs.''
It is not reciprocal if they are not tariffing us. For countries like Brazil where we have a trade surplus, they still slapped 10 percent. Israel reduced their tariffs to zero. They still got the 10 percent.
This is not a case of a bunch of Democrats crying wolf just to wound the Republicans. The markets are speaking. They are terrified. And this isn't about a bunch of billionaire corporations and their profitability. This is about the ability for people to pay for college. This is about the ability for people to retire with dignity and comfort.
Trillions of dollars of wealth are being demolished. These are everyday people panicked about how much more expensive their next trip to Walmart or to Costco will be or when they will lose their job. People are already stockpiling supplies.
Shortly after Trump's announcement, JPMorgan described the impact of the tariffs over the next few months like this:
On a static basis, today's announcement would raise just
under $400 billion in revenue, or about 1.3 percent GDP,
which would be the largest tax increase since [the Revenue
Act of] 1968. . . . The resulting hit to purchasing power
could take real disposable personal income in the [second and
third quarters] into negative territory, and with it the risk
that real consumer spending could also contract in these
quarters. This impact alone could take the economy perilously
close to slipping into recession.
Countries are already responding. It is not like this is a static situation which can't get worse because the retaliations are going on. This idea that this is just a leverage play--there are 200 countries out there with whom we have some sort of--roughly, 200 countries that we have some sort of trading arrangement with.
And Donald Trump is very unpopular. So asking a leader of a country or a Parliament of a country to waive their tariffs at the end of an economic gun because Trump is bullying them, it is like not good domestic politics for them. The best domestic politics for them is to stand up to Donald Trump's bullying, and that is bad for all of us.
We are not going to waive our way through 194 trading partners. China just imposed a 34-percent reciprocal tariff for our 54-percent tariff on Chinese goods.
In a truly bizarre turn of events, we forced our allies and adversaries to try to find ways to work together. Earlier this week, for the first time in years, China and Japan and South Korea discussed the possibility of working together on free trade as a response to Donald John Trump.
The most shocking image is this red line continuing to go down precipitously. Among the other most shocking images, there is a picture of high leaders from Korea--first of all, Korea and Japan are in a better place now, but there have been diplomatic challenges over the decades and the generations. But they are in a reasonably good place. Just to see them shaking hands is a big deal, but to see them shaking hands--literally holding hands--with a high official from China to indicate they are in this together against us.
So it is true that Donald Trump is uniting the world. The problem is, he is uniting the world against us.
Look, there is a real objective here that we have been working on for the last 4, 8 years. And whether it is chips or it is cars or it is clean energy, we have actually increased the amount of domestic manufacturing in the United States of America with good industrial policy and targeted trade policy. But this is mayhem. This is mayhem.
John Kennedy, the current Senator for Louisiana, said it exactly right. Tariffs, like whiskey, can be refreshing, can be useful. Too much--I am paraphrasing--and very bad things happen.
Very bad things are happening. In the time I took to deliver these remarks, probably some number of tens of billions of dollars of additional wealth from working people was just wiped out.
I want to make one final point, and this is the most important point: Republicans can and should stop this. With the exception of maybe three or four Members, almost every Republican Senator hates tariffs. The question is whether they will stand up to Donald Trump, who has taken this deadly protectionist, anti-market, superharmful direction. All we need--Republicans are in charge of the Senate--is for them to exert their constitutionally given authority over the assessing of tariffs. There is bipartisan momentum in that space, but we are not there because what I am reading and what I am hearing is they are willing to give this a couple of months.
Let me give a bunch of free advice to my Republican friends: If you are going to stand up to him in 2 months, do it now. Your people are suffering. People are being laid off.
By the way, most of what is happening in terms of Trump's plummeting popularity is what they are seeing on their screens. But in the next week or so, it will not be what they are seeing on their screens; it will be what they are seeing when they try to buy something. It is what they are seeing amongst their friends who are being laid off.
This is about to get very real, and I advise you against my own political interests but in the country's interest: If you are going to stand up to him in June, my God, do it now.
I yield the floor.
Madam President, leave Social Security alone. Leave Social Security alone. Donald Trump wants to gut the most successful antipoverty program in American history.
Over the past 3 months, his administration has made sweeping cuts to Social Security in ways that are already being felt across the country. Wait times have doubled to as many as 4 or 5 hours. Local field offices are closing. Websites are crashing, and people are understandably panicked about getting checks or missing payments altogether.
But according to Commerce Secretary Lutnick, there is nothing to worry about:
Let's say Social Security didn't send out their checks this
month. My mother-in-law who is 94, she wouldn't call and
complain. She just wouldn't. She'd think something got messed
up, and she'd get it next month.
``She wouldn't complain.'' Well, when your son-in-law is a billionaire, a missed check is not a very big deal, but when you are a senior on the island of Oahu, where the average rent far exceeds the average benefit--I want you to understand that the average benefit is about $1,900. The average rent is more than $2,000.
Three hundred thousand people in the State of Hawaii depend on Social Security, and the vast majority of them, Social Security is either all of their income or most of their income.
The idea that we are going to balance the budget on the backs of seniors who have paid into an earned benefit is immoral. It is wrong. I speak on behalf of all of my constituents who depend on it. It is not just the 300,000, it is all of the family members. It is all of the family members.
I speak on behalf of my mother- and father-in-law, George and Ping Kwok. George Kwok worked all his life in a kitchen. Sometimes he was an employee. He eventually ended up owning a place called ``Kwok's Chop Suey.'' He sold it, and bought a home for his mom and helped to send his daughter to college.
Then he started to get blind, and he burned his hand in a fryer. So he was unable to work, and he took Social Security disability. He deserves that money. Leave Social Security alone.
Social Security cuts were always the third rail in American politics, even anyone on any side of the aisle with any sense of how to get elected knew not to touch that third rail, but they are grabbing this third rail with both hands.
I want to quote a couple of my constituents. One constituent wrote to me:
We are elderly and [we] are concerned about the potential
of cutting Social Security checks. We paid into the system
our entire working lives and fear we can't afford food, water
bills, and medical care. What will happen with these cuts and
the cost-of-living going up? What will be our safety net? We
are afraid of what is to come.
Another wrote:
I worked for 36 years for the Federal Government, including
4 years as active duty Air Force in Vietnam. I contributed to
Social Security with explicit understanding that I would get
Social Security as a portion of my retirement. Cutting Social
Security means I lose about a third of my retirement with no
recourse.
I am 77 [years old] with health issues and [haven't]
planned on getting another job. My wife was a flight
attendant for Hawaiian Airlines for 50 years and also depends
on Social Security for her retirement. It is completely
unfair when she paid into Social Security for more than 50
years just to be abandoned when she is . . . [70 years old].
Another constituent:
I am a 73-year-old woman who, unlike Billionaire Commerce
Secretary Lutnik's mother-in-law, cannot afford to miss or
reduce my Social Security . . . payment. It is my sole income
and I need it to pay rent and [to] buy food. I worked hard
all my life and contributed my fair share of taxes toward
social security. I'm not asking for a free ride--I earned my
Social Security.
``I'm not asking for a free ride--I earned my Social Security.'' Leave Social Security alone.
I yield the floor.