GOP Hesitation Deepens as Trump’s Tariffs Shake Wall Street and Spark Recession Fears

Hadisur Rahman, Jadetimes Staff

H. Rahman is a Jadetimes news reporter covering the USA

---

Image Source: Katherine Tully-McManus, Meredith Lee Hill and Jordain Carney

As global markets tremble under the weight of President Donald Trump’s latest round of sweeping tariffs, the economic and political reverberations are being felt from Wall Street trading floors to Capitol Hill offices. Thursday’s massive stock sell GOP Hesitation Deepens as Trump’s Tariffs Shake Wall Street and Spark Recession Fearsoff wiping out trillions in market value raised urgent questions about inflation, a looming recession, and how long Republican lawmakers will remain silent amid growing economic uncertainty.

What’s at Stake with Trump's New Tariffs?

Trump’s recent tariff announcement marks an aggressive escalation in his ongoing trade campaign. While designed to curb foreign economic influence and revive domestic manufacturing, critics argue these tariffs are instead sowing chaos in global markets and increasing costs for American businesses and consumers.

Investors reacted swiftly and sharply, selling off stocks in a panic over the prospect of trade disruptions and higher prices clear warning signs of a possible economic downturn. Yet, despite this, most Republican lawmakers appear unwilling to challenge the president, reflecting both political loyalty and fear of backlash.

GOP Lawmakers: Reluctance and Rationalization

Rather than confronting Trump directly, Republican senators expressed caution and in some cases, even support for the president’s actions. “Most members on our side are very willing to give the president time,” said Sen. John Boozman (R-Ark.), a sentiment echoed by many within the party.

While a few Republicans notably Sens. Chuck Grassley and Maria Cantwell have introduced bipartisan proposals to curb presidential tariff powers, broad support remains elusive. GOP leaders like Sen. Josh Hawley (R-Mo.) went as far as suggesting Congress should instead raise tariffs, reflecting Trump’s successful reshaping of the Republican economic platform.

Even lawmakers expressing concern, such as Sen. Ron Johnson (R-Wis.), acknowledged Congress’s long standing trend of ceding authority to the executive branch. “I wouldn’t be opposed to clawing some of that back,” Johnson said, “but that’s not where we are right now.”

Mounting Economic Pressures and Democratic Pushback

While the Republican majority remains cautious, Democrats are signaling their intention to force a reckoning. Senate Minority Leader Chuck Schumer minced no words, warning, “He’s walking us into the dumbest and most avoidable recession, probably in history.”

On Wednesday, four Republicans joined Democrats in a symbolic resolution opposing Trump’s earlier Canada tariffs. Buoyed by that vote, Democrats are now preparing to challenge the latest tariffs, both in the Senate and in the House, where Speaker Mike Johnson has already taken steps to block such measures.

Efforts may include a discharge petition or using upcoming budget votes to put Trump’s trade agenda directly on the floor. However, structural hurdles remain. Even if both chambers pass disapproval resolutions, Trump can veto them and it would take a two-thirds majority in both chambers to override that veto.

Political Calculus: Loyalty vs. Economic Reality

Much of the GOP's hesitation stems from a fear of political retribution. “Everyone is terrified,” said a senior Republican aide, granted anonymity to discuss internal party dynamics. “But I don’t think anyone wants to cross the president right now.”

Despite growing market turmoil, most Republicans are giving Trump months not days to prove his trade strategy works. And for some lawmakers, the tariffs are a feature, not a bug. Senate Majority Whip John Barrasso defended the president’s approach, saying, “We’ve been taken advantage of through Republican and Democrat administrations of the past and that has stopped.”

Yet, political winds may shift. As GOP senators prepare to return to their districts for a two week recess, Democrats believe constituent pressure may begin to change the calculus. Sen. Tim Kaine (D-Va.) predicted a “larger universe” of Republicans will reconsider their stance after facing feedback from back home.

What Lies Ahead?

While immediate legislative action seems unlikely, the underlying tension continues to build. As markets remain volatile and international retaliation looms, the GOP will face increasing pressure to choose: remain aligned with Trump’s protectionist agenda, or reassert congressional oversight in the face of deepening economic uncertainty.

One Republican aide warned ominously, “If you thought today was bad, buckle up.”

Where Does This Leave Us?

This article underscores a critical moment in American economic and political life. With the stock market faltering and the threat of recession looming large, the stakes couldn’t be higher. Republicans, faced with a choice between loyalty to a former president and their constitutional duty to check executive power, are for now choosing the former. But as pressure mounts from voters and markets alike, that stance may become increasingly difficult to sustain.

The Waqf (Amendment) Bill, 2024: A Crossroads for India's Secular Fabric

Simranjit Singh, The Editorial Board

Prof. Simran S Kaler is Editor in Chief of The Editorial Board at Jadetimes

---

Image source : southasiatimes.org

India stands at a pivotal juncture with the recent passage of the Waqf (Amendment) Bill, 2024. This legislation introduces significant alterations to the governance of Waqf properties—assets dedicated to charitable and religious purposes in the Muslim community. Proponents hail it as a step toward modernization and inclusivity, while critics decry it as an infringement on minority rights and a deviation from India's secular ethos. This editorial seeks to dissect the bill's provisions, the ensuing debates, and its broader implications for India's pluralistic society.

Understanding Waqf and Its Significance

Waqf refers to the permanent dedication of movable or immovable property by a Muslim for purposes recognized as pious, religious, or charitable under Islamic law. These endowments have historically funded mosques, educational institutions, orphanages, and other community services, playing a crucial role in the socio-economic fabric of Muslim communities in India.

Key Provisions of the Waqf (Amendment) Bill, 2024

The Waqf (Amendment) Bill, 2024, introduces several pivotal changes to the existing Waqf Act of 1995:

1. Inclusion of Non-Muslim Members: The bill mandates the inclusion of non-Muslim members in the Central Waqf Council and State Waqf Boards. Specifically, it allows for up to 12 out of 22 members in the Central Waqf Council and up to 7 out of 11 members in State Waqf Boards to be non-Muslims.

2. Government Oversight on Property Disputes: The legislation empowers government authorities to adjudicate ownership of disputed Waqf properties, a function previously under the purview of Waqf Boards and judicial bodies.

3. Judicial Oversight on Waqf Tribunal Orders: The amended bill introduces a provision allowing appeals to the High Court against Waqf Tribunal orders, addressing a previous gap where Tribunal decisions were final and unchallengeable.

4. Clarification on 'Waqf by User': The bill seeks to provide clarity on the concept of 'Waqf by user,' aiming to address ambiguities and disputes related to properties that have been traditionally used for religious purposes without formal dedication.

Arguments in Favor of the Bill

Supporters of the Waqf (Amendment) Bill, 2024, present several justifications:

* Combating Corruption and Mismanagement: By diversifying the composition of Waqf Boards and introducing non-Muslim members, the bill aims to enhance transparency and reduce instances of corruption within Waqf institutions.

* Promoting Inclusivity: The inclusion of non-Muslim members is seen as a move toward fostering communal harmony and reflecting India's diverse societal fabric within the governance structures of Waqf properties.

* Streamlining Property Dispute Resolution: Granting government authorities the power to decide on disputed Waqf properties is argued to expedite resolutions and reduce prolonged litigations.

Counterarguments and Concerns

Conversely, the bill has encountered robust opposition, with critics highlighting several concerns:

* Erosion of Minority Autonomy: The mandated inclusion of non-Muslim members is perceived as an encroachment on the autonomy of Muslim communities to manage their religious endowments, potentially undermining the religious character of Waqf institutions.

* Risk of Property Expropriation: Empowering government authorities to adjudicate Waqf property disputes raises fears of state overreach and potential expropriation of properties historically managed by Muslim communities.

* Constitutional and Secular Concerns: Opposition parties and legal experts argue that the bill contravenes constitutional provisions safeguarding minority rights and disrupts the secular framework by allowing state interference in religious affairs.

Broader Implications for India's Secularism

The enactment of the Waqf (Amendment) Bill, 2024, signals a critical moment for India's commitment to secularism and minority rights. The legislation's approach to integrating non-Muslim members into Waqf governance structures, while ostensibly promoting inclusivity, raises questions about the balance between state intervention and religious autonomy.

Historically, India's secularism has been characterized by a principled distance, allowing religious communities to self-manage their affairs. This bill's provisions could set a precedent for increased governmental involvement in religious institutions, potentially affecting other minority communities and their rights to self-governance.

Navigating the Path Forward

As India navigates the complexities introduced by the Waqf (Amendment) Bill, 2024, it is imperative to foster dialogue that respects the sentiments of all stakeholders. Ensuring that reforms aimed at enhancing transparency and inclusivity do not inadvertently erode the rights and autonomy of minority communities is crucial.

The path forward should involve collaborative engagement with representatives from affected communities, legal experts, and civil society to address concerns and uphold the principles of justice, equality, and secularism that form the bedrock of India's democratic ethos.an work towards a more stable and prosperous global economy.

The Global Reverberations of President Trump's Tariff Strategy

Simranjit Singh, The Editorial Board

Prof. Simran S Kaler is Editor in Chief of The Editorial Board at Jadetimes

---

Image source : Getty Images

In a move that has sent shockwaves through the international economic community, President Donald Trump announced on April 2, 2025, the implementation of sweeping tariffs on imports from numerous countries. These tariffs, ranging from 10% to 50%, mark a significant shift towards protectionism, raising the United States' effective tariff rate to its highest level since 1909. The ramifications of this policy are profound, with the potential to disrupt global trade dynamics, strain diplomatic relations, and impact economies worldwide, including that of India.

The Tariff Announcement: A Paradigm Shift in U.S. Trade Policy

President Trump's declaration introduced a 10% baseline tariff on all imports, with elevated rates for specific countries based on trade deficits and other economic considerations. Notably, China faces a 34% tariff, the European Union 20%, and India 27%. This aggressive stance aims to rectify perceived imbalances in trade and bolster domestic manufacturing. However, it represents a stark departure from decades of U.S. commitment to free trade principles.

Economists and policymakers have expressed deep concern over this abrupt policy shift. The Financial Times characterized the move as an "astonishing act of self-harm," highlighting the potential for increased consumer prices, disrupted supply chains, and retaliatory measures from affected nations. The Wall Street Journal echoed these sentiments, warning of stagflation—a combination of stagnant economic growth and rising inflation—as a likely consequence.

Global Economic Implications: A Delicate Balance Disrupted

The imposition of these tariffs is poised to have far-reaching effects on the global economy. The Times reported that the U.S.'s effective tariff rate has surged to 22%, the highest since before World War I, signalling a protectionist shift that could severely impact global economic stability. Countries such as China, the EU, and South Korea have already signalled intentions to retaliate, raising the spectre of a full-scale trade war.

Financial markets have reacted negatively to the announcement. The S&P 500 and the U.S. dollar experienced significant declines, reflecting investor unease. JPMorgan analysts have increased the likelihood of a U.S. recession to 60%, citing the tariffs as a substantial macroeconomic shock.

The impact extends beyond the United States. The Organisation for Economic Co-operation and Development (OECD) has projected a slowdown in global economic growth, attributing this deceleration to the disruptive effects of the tariffs on international trade. Developing nations, particularly those reliant on exports to the U.S., face heightened vulnerability in this new trade environment.

India's Position: Navigating Choppy Waters

India has been assigned a 27% tariff rate, which poses significant challenges for its export sector. The Indian Express highlighted that this rate reflects U.S. concerns over India's protectionist policies and trade surplus with the U.S.. Key Indian exports, including pharmaceuticals, textiles, and information technology services, will likely be adversely affected.

The Economic Times reported that India's government is assessing the potential impact and exploring strategies to mitigate the fallout. This includes engaging in diplomatic negotiations with the U.S. to seek exemptions or reductions in tariff rates. Additionally, India may consider diversifying its export markets and enhancing competitiveness through policy reforms and incentives for exporters.

However, the path forward is fraught with complexity. Retaliatory tariffs from India could escalate tensions and further strain bilateral relations. Moreover, the broader uncertainty in global trade dynamics necessitates a cautious and strategic approach to safeguard India's economic interests.

Historical Parallels: Lessons from the Past

The current tariff escalation evokes memories of the Smoot-Hawley Tariff Act of 1930, which imposed high tariffs on imports and is widely believed to have exacerbated the Great Depression. Similarly, the present-day tariffs risk triggering a cycle of retaliation that could stifle global trade and economic growth.

The Financial Times noted that the U.S.'s move mirrors the protectionist policies of the early 20th century, which led to economic isolation and downturn. This historical context underscores the potential dangers of the current trajectory and the importance of learning from past mistakes.

The Path Forward: Diplomacy and Multilateral Engagement

Addressing the challenges posed by these tariffs requires a concerted effort from the international community. Diplomatic engagement and multilateral negotiations are essential to de-escalate tensions and find mutually beneficial solutions. The World Trade Organization (WTO) and other international bodies can play a pivotal role in facilitating dialogue and adjudicating disputes.

For India, strengthening regional trade partnerships and participating actively in forums like the Regional Comprehensive Economic Partnership (RCEP) can provide alternative avenues for trade and reduce dependence on any single market. Additionally, implementing domestic reforms to enhance ease of doing business, investing in infrastructure, and fostering innovation can bolster competitiveness in the global market.

A Call for Prudence and Collaboration

President Trump's tariff strategy represents a significant shift with profound implications for the global economy. While the intent to protect domestic industries is understandable, the potential for unintended consequences, including trade wars and economic downturns, cannot be ignored.

It is imperative for nations, including India, to approach this challenge with prudence, leveraging diplomacy and multilateral engagement to navigate the complexities of the current trade landscape. By learning from history and fostering collaboration, the international community can work towards a more stable and prosperous global economy.