Members of Congress have been keeping a wary eye on the roiling financial markets that have clobbered Americans’ 401(k) accounts, amid uncertainty over President Donald Trump’s tariffs.

Democrats have blasted the president for implementing what they call a “national sales tax” that will penalize consumers and U.S. businesses. Senate Minority Leader Chuck Schumer recently said the tariffs amount to “the largest tax hike on families since World War II.”

Republican lawmakers, for the most part, have tried to avoid saying much about the tariffs, instead focusing on moving ahead with the president’s legislative agenda and reenacting the Trump tax cuts from his first term.

“We need to stop Democrats’ goal of raising taxes by four trillion dollars,” Senate Majority Whip John Barrasso said, referring to the amount that taxes will rise if the 2017 tax cuts aren’t extended by lawmakers.

But some Republicans have indicated they are not in lockstep with the president, as the markets ride out a financial roller coaster linked to the tariffs.

Senate has pushed back on tariffs

The most concrete step that the Senate has taken related to tariffs was last week’s passage of legislation sponsored by Virginia Democratic Sen. Tim Kaine, which would undo the original tariffs imposed against Canada.

The legislation took aim at the president’s emergency declaration on fentanyl, which he used to justify penalizing the U.S. ally to the north.

Four Republicans, including former GOP Senate leader Mitch McConnell, joined with Democrats to approve the bill.

McConnell has been a longtime critic of tariffs, as many Republicans used to be.

He also opposes tariffs because they would impact “the hardworking Kentuckians who craft 95% of the world’s bourbon” in his home state.

“Make no mistake: goods made in America will be more expensive to manufacture and, ultimately, for consumers to purchase with higher broad-based tariffs,” McConnell said in a statement.

But while the Senate passed Kaine’s legislation, it is not likely to go anywhere in the House, where the vast majority of Republicans have vowed to stand with the president and let his trade policy play out.

Senate bill seeks to give lawmakers more power over tariffs

The day after Trump announced what he called “Liberation Day,” a bipartisan piece of legislation was introduced in the Senate that seeks to reassert congressional authority over tariffs and trade.

It is cosponsored by Iowa Republican Sen. Chuck Grassley and Washington state Democratic Sen. Maria Cantwell.      

The legislation is the first bipartisan measure that would place limits on Trump’s tariff powers.

It would require a president to notify Congress within 48 hours of imposing a tariff and the reasons for putting it into place. Tariffs would expire in 60 days, unless Congress approves of them.

“This bill reasserts Congress’s role over trade policy to ensure rules-based trade policies are transparent, consistent, and benefit the American public,” Cantwell said.

The legislation is modeled after the War Powers Act, which was established in 1973 to limit a president’s ability to take military action without congressional authorization.

Grassley’s home state of Iowa relies heavily on agriculture and there is widespread concern in his state about the impact of tariffs on farmers.

Cantwell’s state of Washington has extensive exports, including in the aviation industry as well as agriculture.

While the legislation is significant, it remains unclear if it will build the bipartisan support it would need to get approval.

Maryland senator’s bill seeks to gauge impact of tariffs

Maryland Democratic Sen. Angela Alsobrooks’ first piece of legislation since she was elected last November relates to tariffs.

The Tariff Transparency Act would require the U.S. International Trade Commission to study tariffs and assess how they could affect prices of various sectors, including food, housing and automobiles.

“My bill is simply asking for transparency,” Alsobrooks said.

Alsobrooks tried to pass her bill by unanimous consent the same day Trump announced his latest round of tariffs.

But Idaho Republican Sen. Mike Crapo, who chairs the Senate Finance Committee, objected.

Alsobrooks said she has met with farms and business owners in Maryland “and they’re concerned, very concerned” about the tariffs.

All of the senators from Virginia and Maryland have spoken out against the tariffs on the Senate floor.

While Republicans have been more muted on the issue, some are becoming more vocal. Texas Sen. Ted Cruz, the Republican chair of the Senate Commerce Committee, warned on his latest podcast on Friday that the tariffs pose “enormous risks.”

He said the best-case scenario would be if countries start coming to the Trump administration and seek to cut their tariffs with the U.S. But he said if U.S. tariffs and those of other countries remain in place in the coming months, that will drive up inflation and raise prices for Americans.

“It will hurt jobs and hurt America,” he said.

Cruz also said if the country goes into a recession, the midterm elections in 2026 could be a “bloodbath” for the GOP.

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