Alarms are going off within Trump camp against tariffs

President Donald Trump's reciprocal tariffs and retaliatory moves the EU and China have plunged the world into an internecine trade war, sending tremors through markets as well as worrying businesses, consumers and governments. Trump dubbed April 2, the day he announced the reciprocal tariffs as "Liberation Day", promising short-term pain but long-term gain for the US, many within his own camp are worried about the chaos it can unleash in the American economy as well as politics. Voices of protests have started rising among his associates as well as supporters.

Trump associates are ringing alarm bells

JPMorgan Chase chief Jamie Dimon, a Trump supporter, has warned investors that the turmoil caused by US tariffs and a global trade war could slow growth in the world's largest economy, spur inflation and potentially lead to lasting negative consequences. Dimon has run the largest US bank for 19 years and is one of the most prominent voices in corporate America. In his annual letter to shareholders, Dimon said the tariffs “will likely increase inflation and are causing many to consider a greater probability of a recession.”

"The economy is facing considerable turbulence (including geopolitics)," Dimon wrote. "We are likely to see inflationary outcomes ... Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth."

Dimon's comments come after billionaire Ackman, who endorsed Donald Trump's run for president, said business leaders were losing confidence in Trump. Ackman also called on the president to pause and renegotiate trade deals. If the tariffs are imposed this week, "we are heading for a self-induced, economic nuclear winter," Ackman wrote in a post on X. They would stymie business investment and consumer spending and "severely damage" the US' reputation for years, he wrote. “The President has an opportunity to call a 90-day time out,” he wrote.

“Business is a confidence game. The president is losing the confidence of business leaders around the globe,” Ackman wrote. “The consequences for our country and the millions of our citizens who have supported the president — in particular low-income consumers who are already under a huge amount of economic stress — are going to be severely negative.”

Ackman also raised concerns about job losses. “If markets crash, new investment stops, consumers stop spending money, and businesses have no choice but to curtail investment and fire workers.”

Tensions are rising within the Republican Party too. Senator Ted Cruz has warned about serious consequences of tariffs. He said tariffs could lead to a political "bloodbath" for Republicans, according to a report by the New York Post. Speaking on his podcast 'Verdict' last week, Cruz said, "I am seeing a lot of Republican cheerleaders reflexively defending what the White House is doing." He further said that a trade war "would destroy jobs here at home and do real damage to the US economy."

"If we go into a recession, particularly a bad recession, 2026, in all likelihood politically, would be a bloodbath. You would face a Democrat House, and you might even face a Democrat Senate," the New York Post quoted him as saying," he said.

Another Republican senator Rand Paul has also spoken out against tariffs. He wrote an opinion piece for Fox News, arguing that the administration should drop tariffs and keep forging close ties with its international allies. "Tariffs on imported cars could increase prices by $5,000 to $15,000, according to Goldman Sachs," Paul wrote. "The reason for this is that tariffs are levied against imports from other countries and are paid for by American customers. Nearly all products are subject to these tariffs."

Treasury Secretary Scott Bessent was said to be planning to quit after Trump’s reciprocal tariffs announcement. As per a report by The New Republic, during an appearance on MSNBC’s Morning Joe Friday, contributor Stephanie Ruhle reported that the key Cabinet member is looking for an escape hatch. “My sources say that Scott Bessent is kind of the odd man out here and, in the inner circle that Trump has, he’s not even close to Scott Bessent or listening to him,” Ruhle said. “Some have said to me, he’s looking for an exit door to try to get himself to the Fed, because in the last few days he’s really hurting his own credibility and history in the markets.”

Most Americans too are not happy with tariffs

Trump's MAGA (Make America Great Again) mass base is also not happy with the possible consequences of tariffs on American economy. Indicating that many in his own support base too don't see tariffs in a positive light, Trump’s approval rating has dipped into negative territory for the first time in a survey conducted by a Republican-aligned polling firm, raising fresh concerns within the party as it navigates upcoming political challenges.

According to Rasmussen’s daily poll tracker, as of April 4, Trump’s approval rating stands at 49 percent, while 50 percent disapprove of his performance in office. This marks the first time in his second term that Rasmussen, typically considered a Republican-leaning pollster, has shown Trump with a net negative rating, as per a report by Newsweek. This downturn follows an April 3 dip below the 50 percent approval mark.

Newsweek’s aggregation of the ten most recent polls indicates Trump’s approval at 47 percent, while 49 percent disapprove—a reversal from early March when approval stood at 49 percent and disapproval at 47 percent.

A broad majority of Americans -- 70%, including 62% of Republicans -- believe that increased tariffs will drive up the price of groceries and other consumer goods, according to a Reuters/Ipsos poll. About 53% of respondents to the poll agreed with the statement that increased tariffs would do more harm than good, while 31% disagreed. The rest were unsure or did not answer. Just 31% of respondents agreed that U.S. workers come out ahead when the country charges tariffs on imported goods, while 48% disagreed.

(With inputs from agencies)