More US Senate Republicans voice support for congressional oversight on tariffs

By Richard Cowan

WASHINGTON (Reuters) -A U.S. Senate bill that would require congressional approval for new tariffs gained more Republican support on Friday, on the second day of a stock market rout sparked by President Donald Trump's move to impose sweeping new taxes on imports.

Republican U.S. Senators Lisa Murkowski of Alaska, Mitch McConnell of Kentucky, Jerry Moran of Kansas and Thom Tillis of North Carolina joined on as co-sponsors of a bill introduced on Thursday by Republican Chuck Grassley of Iowa and Democrat Maria Cantwell of Washington.

The bill would terminate new tariffs within 60 days unless the U.S. Congress explicitly approves them.

However, it is unclear if it has any chance of being taken up in, let alone passing, the Senate, where Trump's party holds a 53-47 majority. Many Republicans are voicing support for the president's move on tariffs, which economists say will push prices higher and risks triggering a recession but the White House contends will spur new investment in U.S. manufacturing.

"Every state has unique industries that are impacted differently by changes in global markets and trade policies, such as agriculture, car manufacturing and aircraft production," Moran said in a statement to Reuters on Friday. "The Constitution gives Congress the authority to make decisions regarding foreign commerce, including tariffs."

It was the latest sign of unease among some Senate Republicans over Trump's sweeping new tariffs. On Tuesday, a separate bill was passed - backed by four Republicans and all the chamber's Democrats - which would have the effect of terminating new tariffs on Canada.

So far there is no sign that the House of Representatives, also under the control of the Republicans, will take up that bill.

Republican Senator Ted Cruz of Texas, a staunch Trump supporter, said in his "Verdict" podcast on Friday that tariffs could lead to a "terrible" scenario.

"If we're in a scenario 30 days from now, 60 days from now, 90 days from now, with massive American Tariffs and massive Tariffs on American goods and every other country on earth, that is a terrible outcome," said Cruz, who has not signed on to the Grassley bill. "It's terrible for Texas, which obviously I care about deeply."

Republican U.S. Representative Don Bacon from Nebraska said he plans to introduce a companion bill to Grassley's in the House.

"I look forward to working with Sen. Grassley to restore review and powers over tariffs to Congress," Bacon said in a statement. But it was unclear if the House leadership, which is closely aligned with Trump, would bring Bacon's bill up for a vote.

Senate Democratic Leader Chuck Schumer told reporters he and other Democrats will also propose an amendment to a budget bill under debate that rescinds any tariffs put in place by Trump since he took office in January if they have raised the price of groceries, medicines or other consumer products.

The idea, which Republicans are likely to block, would keep in place tariffs on China, Russia, Iran and North Korea.

In addition to Murkowski, McConnell and Moran, Democratic Senators Michael Bennet of Colorado, Amy Klobuchar of Minnesota, Peter Welch of Vermont and Mark Warner of Virginia have signed on as sponsors of the Grassley-Cantwell bill.

In a hallway interview, Tillis cited his worries about the effect of the tariffs on the agriculture industry in his home state of North Carolina.

He said he had heard from House Republicans from his state who "are taking a lot of incoming" constituent complaints about the tariffs' hit.

Tillis, one of just three Republicans defending a Senate seat seen as competitive in next year's midterm elections, said that his state's agriculture industry, which produces pork, chicken and turkey, could be hit by retaliatory tariffs.

Tillis said he wants to see the Trump administration detail "a well-articulated strategy" in coming weeks on what the tariffs will accomplish. He said he hopes, for example, that the administration will work on a "blockbuster trade agreement" with a major trading partner that would potentially replace the punitive tariffs.

Trump in a social media post on Friday said "my policies will never change."

Without directly criticizing Trump, Tillis said, "If all we're doing is 'set it and forget it' and not trying to take the edge off of this, I believe there will be an increasing number of people saying that we need to have oversight."

(Reporting by Richard Cowan; Editing by Scott Malone, Sandra Maler and Rosalba O'Brien)