Trump’s Plan to End Tariffs Fails in Senate; US Economy Records Major Downturn

Washington (The Uttam Hindu): The US Senate on Wednesday narrowly rejected President Donald Trump's proposal to repeal high tariffs, even as the country reported its first economic contraction in three years. The vote, marked by divisions within the Republican Party, signals ongoing turmoil over trade policy and its impact on the global and domestic economy.

The initial vote tied at 49-49, with three Republican senators—Rand Paul, Susan Collins, and Lisa Murkowski—siding with Democrats. Despite Republican control of the Senate (53-47), absences from key senators, including Mitch McConnell and Democrat Sheldon Whitehouse, left the outcome uncertain. Vice President JD Vance was summoned by Senate Majority Leader John Thune for a second vote, but the proposal was narrowly defeated 50-49 after Vance cast the tie-breaking vote against it.

The resolution, aimed at repealing Trump’s 145% tariffs on Chinese imports, was introduced by Democratic Senator Ron Wyden and co-sponsored by Rand Paul, a longstanding critic of Trump’s aggressive tariff stance.

China Reels Under Tariffs: Factory Closures, Worker Protests Spread

On the global front, Trump’s tariff policy has triggered major unrest in China. As heavy US import tariffs continue to impact manufacturing, factories are shutting down across Chinese provinces. Reports indicate widespread worker protests in Hunan, Sichuan, and Inner Mongolia due to unpaid wages and mass layoffs.

Protesters have flooded the streets, expressing anger over job losses, while analysts from Goldman Sachs warn that around 16 million jobs in China are now at risk due to the US-imposed tariffs.

Despite growing speculation of backdoor diplomacy, Chinese officials have publicly denied any ongoing negotiations. On Thursday, a media account linked to Chinese state media claimed the US had approached China through informal channels to discuss tariff relief. However, Chinese Foreign Ministry spokesperson Guo Jiakun stated, “There has been no consultation or negotiation between China and the US on tariffs as of now.”