Senate Moves to Challenge Trump’s Tariffs as U.S. Economy Contracts for First Time in 3 Years

The U.S. Senate prepared to vote on a resolution Wednesday aimed at blocking President Donald Trump's tariff policies, just hours after new data showed the economy had contracted for the first time in three years.

The resolution, introduced by Democratic Senator Ron Wyden and co-sponsored by Republican Senator Rand Paul, seeks to terminate the national emergency Trump used to justify broad 10% tariffs and steeper duties on China and the EU.

Though bipartisan, the resolution’s fate remains uncertain amid concerns among Republicans about political retaliation from Trump. The White House has vowed to veto the measure, arguing it would harm national security.

Meanwhile, the Commerce Department reported a 0.3% annualized economic decline in Q1 2025, tied in part to businesses stockpiling goods ahead of anticipated tariff hikes—offering the first hard evidence of the tariffs’ economic toll.