Senate GOP Elects Thune as Leader, Rejecting Musk’s Pick

(Bloomberg) -- South Dakota Senator John Thune, a longtime deputy of Mitch McConnell and an advocate of free trade, won election to lead the Republican Senate majority next year, setting up potential conflicts with President-elect Donald Trump over tariffs and Ukraine aid.

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Thune, 63, defeated Elon Musk’s candidate Rick Scott and another McConnell protege John Cornyn in secret voting on Wednesday. McConnell, the longest-serving Republican leader in the chamber, is stepping down from the post after 18 years.

Thune has looked to reset his relationship with Trump after a rocky period following the January 6, 2021, insurrection at the US Capitol. Earlier this week, the senator said he was open to Trump’s demand for the next GOP leader in the chamber to back his ability to bypass Senate confirmation proceedings through recess appointments.

Speaking to reporters after the vote, Thune claimed a mandate for Trump and vowed to “explore all options” to get the president-elect’s nominees quickly confirmed by the Senate. Thune later said on X he spoke by phone with Trump, who was in Washington on Wednesday.

“He moves quickly, and will do an outstanding job,” Trump said of Thune in a post on Truth Social, adding that he looks forward to working with him.

Musk, the world’s richest man, posted a one-word “Congratulations” message to Thune on his X platform after the vote was announced.

The Republican leader’s election — conducted in the ornate Old Senate Chamber — is among the ultimate Washington insider affairs. Public campaigns are typically considered gauche, with leadership hopefuls instead privately building support among their colleagues.

This year, however, became more of a public spectacle, with Musk and some of Trump’s other best-known supporters behind Scott. Musk, who traveled with Trump to Washington on Wednesday, has emerged as an influential and prominent player in the president-elect’s inner circle.

Trump, however, didn’t publicly back anyone in this Senate leadership contest. The GOP is set to take the majority on Jan. 3 when newly elected senators are sworn in.

Inflation Warning

Thune warned in August that global tariffs proposed by Trump were a recipe for inflation, highlighting his longstanding support for free trade deals to bolster his state’s agricultural exports. That may be the biggest flash point between Trump and establishment-minded party members who dominate the Senate Republican Conference.

Congress has given the president broad authorities to modify tariffs to address national security and other concerns, so Trump’s tariffs may not require a congressional vote. But a public clash between Trump and Thune early in the administration would risk a rift in the party at a critical time.

Thune has also supported aid to Ukraine, aligning with McConnell to oppose Vice President-elect JD Vance’s position. While the South Dakotan senator voted to acquit Trump in his second impeachment trial, Thune said the former leader’s actions to disrupt the peaceful transfer of power nearly four years ago were “inexcusable.”

Known as an affable senator with good relations on both sides of the aisle and with the business community, the towering Thune has served 20 years in the Senate after defeating then-Democratic leader Tom Daschle in 2004.

Filibuster Stays

He told reporters Wednesday that he would preserve the Senate’s filibuster rule, which gives the minority party a say in most legislation. The Senate has already carved out an exception to the filibuster rule for tax and spending measures. For confirmation votes, a majority of the Senate also can override a filibuster.

Thune has been the No. 2 Senate Republican since 2019 and was also chairman of the Commerce Committee dealing with issues ranging from social media to telecom regulation. He’s a senior member of the tax-writing Finance Committee and a leading advocate of federal mandates for ethanol and biodiesel.

The new Senate majority leader is the lead sponsor of legislation backed by dozens of Republicans to repeal the tax on large estates, arguing that the current $27.2 million exemption for a couple isn’t high enough even though there are relatively few Americans leave large enough estates to exceed it.

The exemption will be cut in half in 2026 unless Congress acts to extend or expand Trump’s 2017 tax law. Eliminating estate tax has long been a priority for some of the biggest Republican campaign donors.

Before running for Congress, Thune served as South Dakota’s top railroad official. In 2023, he opposed legislation backed by Trump, Vance as well as President Joe Biden and outgoing Senator Sherrod Brown to increase safety regulation of railroads after the East Palestine, Ohio train disaster, arguing that they were too broad.

(Updates with Trump’s comments on Truth Social in sixth paragraph.)

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