Investing.com -- Senator Ted Cruz, a steadfast supporter of President Donald Trump, has voiced concerns over the administration’s decision to escalate tariffs. Cruz warns that this move carries "enormous risks" for the US economy and could potentially jeopardize the Republican party’s standing in the forthcoming midterm elections.

Cruz shared his thoughts on his podcast, released on Friday, amid a severe selloff that hit US stocks for two consecutive days. He expressed worry that the long-term impact of these trade duties could lead to increased inflation and market instability. According to Cruz, the economic repercussions could potentially aid Democrats in their bid to regain control of the House of Representatives and possibly even the Senate, although he considers the latter less probable.

The Texas Senator expressed that widespread tariffs could lead to job losses and significant harm to the US economy. His sentiments mirror those of four Republican senators who, earlier this week, joined Democrats in supporting a measure to end the president’s previous tariffs on Canada. As markets dropped on Thursday, a bipartisan group of senators, including Iowa Republican Chuck Grassley, proposed legislation that would necessitate congressional approval for new tariffs. Cruz revealed that he was reviewing this proposition.

Texas, which accounts for roughly 16% of US trade, the highest of any state, is particularly susceptible to any downturn caused by increased tariffs, as per the Federal Reserve Bank of Dallas.

Additionally, the oil industry, a crucial sector in Texas, experienced a significant drop on Thursday following the Organization of the Petroleum Exporting Countries and its allies’ decision to increase supply more than anticipated. The price of oil continued to fall on Friday due to concerns that economic weakness may lead to a decrease in demand.

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