US Senate narrowly rejects bipartisan bill to block Trump tariffs

Published 01/05/2025, 00:46
© Reuters

Investing.com-- The U.S. Senate on Wednesday narrowly voted against a bipartisan bill aimed at reining in a slew of President Donald Trump’s trade tariffs, even as uncertainty over their economic impact grew. 

Senators voted 49-49 to reject a bill seeking to end the national emergency declared by Trump earlier this year, which he had used as a basis to declare universal trade tariffs of 10% on all imports, and reciprocal tariffs on major trading partners. 

While the bill was largely sponsored and backed by the Democrats, three Republicans were also seen voting in favor of the bill. The bill was sponsored by Senator Ron Wyden of Oregon and Senator Rand Paul of Kentucky, a Democrat and a Republican, respectively. 

But Wednesday’s vote was considered largely symbolic. Republicans in the House of Representatives approved a rule in early April blocking a vote on the resolution. Trump had also threatened to veto any bill against his tariffs, if it ever made it to his desk.

The rejection of the bill comes just hours after gross domestic product data released showed the U.S. economy shrank 0.3% in the first quarter of 2025, as heightened uncertainty over Trump’s policies sparked a sharp pullback in consumer spending. 

A drop in government spending, stemming from cuts enacted by Trump’s Department of Government Efficiency- also contributed to the drop, as did a sharp spike in imports, as companies sought to stockpile essential goods ahead of Trump’s tariffs. 

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