Trump’s Tariffs Raise Tax-Cut Stakes With Recession Fears Rising

President Donald Trump’s much bigger-than-expected tariff hikes increase the urgency of the Republican tax-cut package now in negotiation, while threatening to undermine its boost to business and consumer confidence.

With the biggest selloff on Wall Street since the Covid crisis showcasing investor concerns about Trump’s plans to jack up US tariffs against all trading partners, the stakes are now higher for the GOP tax package. A simple extension of the 2017 income-tax cuts that are set to expire at the end of this year would offer no new fiscal stimulus.

“The main question is what do they do that ...