WASHINGTON — A second day of market devastation shook Washington on Friday, prompting a small but influential group of Republican senators to partner with Democrats in a nascent effort to wrest back control over tariff policy from President Donald Trump.

The policy, announced by Trump on Wednesday, would levy steep tariffs on nearly every nation in the world, starting with a base tariff rate of 10% but climbing higher for some of the largest U.S. trading partners, including China, South Korea, Japan and the European Union.

The Standard and Poor’s 500 and the Dow Composite both reeled over the news from the morning bell, dropping more than 4.5% and capping $5 trillion in value lost over just two days — the largest 48-hour loss on record.

The market turmoil continued Friday after China announced it would reciprocate with a 34% tariff on imported U.S. goods, and after the Federal Reserve chair, Jerome Powell, warned of “persistent” negative effects from the new trade policy.

“We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation,” Powell said Friday. “Tariffs are highly likely to generate at least a temporary rise in inflation.”

J.P. Morgan increased its assessment of the risk of recession this year to 60%, up from a 40% chance it had published just days prior.

Asked about the chances of a U.S. and global recession hitting this year, Senate Minority Leader Chuck Schumer, a Democrat from New York, said, “I’m very worried about it.”

“This is one of the most disastrous and poorly thought out policies that the Trump administration has done thus far, and that’s saying a lot,” he added.

Responding to the crisis, Sen. Charles E. Grassley, R-Iowa, partnered with Democratic Sen. Maria Cantwell of Washington state to introduce a bill that would require the president to submit new tariff policies to Congress for notification, review and approval.

“I’ve long expressed my view that Congress has delegated too much authority on trade to the executive branch under Republican & Democrat presidents,” Grassley wrote on X.

The bipartisan bill already has three additional Republican sponsors — Sen. Jerry Moran of Kansas, Sen. Lisa Murkowski of Alaska and Sen. Mitch McConnell of Kentucky. Other Republicans, including Trump supporter Sen. Thom Tillis of North Carolina, are expressing interest in the bill.

The Grassley-Cantwell bill marks the second time senators pushed back on Trump’s new import taxes in just a week. On Wednesday, in a rare rebuke of the president, the Senate passed a resolution Wednesday designed to thwart the imposition of tariffs on Canada.

Four Republicans — including Murkowski and McConnell — joined all Democrats in passing the resolution on a 51-48 vote.

Democratic leadership in the House of Representatives hopes the Grassley-Cantwell bill might have a path to passage in their chamber eventually, but one senior congressional aide said that leadership is doubtful anything will move in the short term.

“I don’t see it yet,” the aide said, granted anonymity to discuss internal deliberations, “but down the road, it’s possible.”

Trump, meanwhile, responded on social media Friday by telling investors, “MY POLICIES WILL NEVER CHANGE.”

The president is in Florida golfing at his resort for the weekend.

©2025 Los Angeles Times. Visit at latimes.com. Distributed by Tribune Content Agency, LLC.