Rising Inflation, Market Turmoil, and a Divided Republican Party Take Center Stage
In a striking moment of public disagreement, former Vice President Mike Pence took aim at President Donald Trump’s latest economic move, warning that the new round of global tariffs could trigger skyrocketing consumer prices and threaten the financial security of everyday Americans—particularly seniors living on fixed incomes.
Appearing Sunday on NBC’s Meet the Press, Pence called the sweeping tariffs announced in April “the largest peacetime tax hike on the American people in the history of this country.”
His remarks come as the Trump administration doubles down on its America First trade agenda, unveiling a 10% baseline tariff on all imports, plus new “reciprocal” tariffs designed to match foreign trade barriers. While President Trump insists the strategy will revitalize American manufacturing and bring jobs back home, critics—including key Republicans—fear the costs may be passed directly to U.S. consumers.
“When Americans buy foreign-made goods, it’s U.S. companies that pay those tariffs—and those costs are usually passed on to families at the checkout counter,” Pence said.
Conservative Economic Rift: Free Markets vs. Hardline Tariffs
While Pence has consistently supported many of Trump’s second-term accomplishments—including the border crackdown, military action in Yemen, and a tougher stance on China—his opposition to the tariffs marks a clear policy rift within the Republican Party.
In a recent Wall Street Journal op-ed, Pence described the tariff policy as a “massive economic misstep,” warning that the U.S. economy is already showing worrying signs of strain.
“The first quarter of 2025 saw a 0.3% contraction in GDP—the second-worst start for any president since Nixon,” Pence wrote.
The economic downturn, combined with inflationary pressure, has rattled investors. The stock market suffered its worst losses since 2020 after Trump’s tariff announcement, with trillions in value erased overnight. A temporary 90-day pause on most tariffs—excluding those aimed at China—led to a brief rebound, but uncertainty remains.
Trump Defends Tariffs: “They’re Making Us Very Rich”
Despite pushback from some GOP lawmakers, President Trump remains firm in his strategy.
“Tariffs are making us very rich,” he said during a rally in Alabama. “Other countries have been ripping us off for decades. This is just common sense.”
For many conservative voters, Trump’s tough talk resonates. They see tariffs not as taxes, but as a bold stand against globalist elites and foreign exploitation of American industry. Still, Pence warns that blanket tariffs could backfire, especially if they raise prices on essential goods like food, clothing, and prescription drugs—items heavily used by older Americans.
Pence Urges Return to Free Trade With U.S. Allies
Pence called for a renewed focus on free trade agreements with democratic allies, such as the UK, Japan, and key EU partners, to help isolate China economically while maintaining strong global partnerships.
“We should unite the free world in economic cooperation—not punish our friends while trying to compete with our adversaries,” Pence said.
He also stressed the importance of keeping conservative economic principles front and center in 2025, saying that “freedom and free markets go hand in hand.”
A Pivotal Economic Crossroads for President Trump
As inflation concerns grow and economic anxiety rises—particularly among seniors and working families—the Trump administration is facing increasing pressure to strike a balance between protecting U.S. jobs and avoiding higher costs for American consumers.
While Trump remains the undisputed leader of the Republican Party, Pence’s high-profile critique signals internal debate over how best to manage U.S. trade policy, inflation, and economic recovery.
This debate is likely to shape not just economic headlines—but also the 2026 midterms and beyond.