Playbook PM: Another hit on Trump's tariffs

Politico

29-05-2025

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THE CATCH-UP
OH, TO BE A FLY ON THE WALL: Federal Reserve Chair Jerome Powell met with President Donald Trump at the White House this morning on the president's request, the Fed said in a release. 'Chair Powell said that he and his colleagues on the FOMC will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective, and non-political analysis.' Read the full release
THE TARIFF TUSSLE: After a bombshell ruling last night found Trump's imposition of tariffs illegal, a second federal court issued a major ruling against his tariff authority — a move that could have serious ramifications for the administration's trade agenda and efforts to strike new deals with dozens of countries, POLITICO's Doug Palmer reports.
The details: 'The International Economic Emergency Powers Act does not authorize the President to impose the tariffs set forth' in four executive orders Trump issued earlier this year, D.C. District Court Judge Rudolph Contreras said in a decision ordering a preliminary injunction on the collection of the duties on the two plaintiffs who brought the case. Contreras, who also called the tariffs 'unlawful,' stayed his order for 14 days 'so the parties may seek review in the Court of Appeals.'
The context: Today's ruling comes after the U.S. Court of International Trade late last night similarly slapped down Trump's tariff power.
Won't back down: Before the latest ruling was delivered, administration officials were making clear that they would press on with their trade agenda, POLITICO's Doug Palmer and Gigi Ewing report. In an appearance on Fox Business Network this morning, NEC Director Kevin Hassett brushed off the ruling, calling the decision — which he said was spurred by 'activist judges' — a mere 'hiccup' in Trump's plan.
What Hassett said: 'In a month or two, you are going to look ahead and see that countries have opened their markets to American products, they have lowered their non-tariff barriers, they have lowered their tariffs and all the countries that have done that are being treated very respectfully and well by U.S.,' Hassett said, adding that countries that don't abide by Trump's plan should expect 'some form of reciprocal tariffs.' But those comments stand in contrast to the administration's position in various judicial venues.
How it's playing: In light of last night's news, 'trade experts and America's trading partners around the world greeted the news with caution, not celebration,' NYT's Jeanna Smialek reports from Brussels. Though international stock markets rose, 'economists pointed out that Mr. Trump could turn to other legal routes to enact across-the-board tariffs,' the NYT notes, adding that 'the court's move offered only a fragile chance at reprieve for economies like those of Australia, Britain, Canada, the European Union and India. And it all but guaranteed continued chaos.'
Smart read: Ankush Khardori pens his latest Rules of Law column for POLITICO Magazine: 'A Potential Death Blow to the Trump Tariffs: The U.S. Court of International Trade didn't buy what Trump was selling — and the Supreme Court might not either.'
Good Thursday afternoon. Thanks for reading Playbook PM. Drop me a line at [e-mail].
8 THINGS YOU NEED TO KNOW
1. COURT IN THE ACT: President Donald Trump's targeting of Harvard University ran into a major roadblock this morning, with a federal judge extending a block on the White House's effort to prevent the Ivy League institution from enrolling foreign students.
U.S. District Judge Allison Burroughs announced her plan during a court hearing this morning shortly after the administration revealed that it would give the university a 30-day reprieve before cancelling its authority to admit international students, POLITICO's Josh Gerstein, Kelly Garrity and Bianca Quilantan report from Boston.
Burroughs indicated that the administration's announcement does not cancel out the need for a court order barring the administration from taking action against Harvard. In essence, Burroughs said she doesn't trust that other moves against Harvard, such as holding up visas for students, won't happen in the meantime.
'I know you don't think an order is necessary, but I do think an order is necessary,' the judge told a government lawyer. 'I don't think it needs to be draconian, but I want to make sure that nothing changes.'
The knock-on effect: 'Trump's latest visa clampdown is poised to blow a hole in college budgets,' by POLITICO's Rebecca Carballo
2. SCOTUS WATCH: 'Supreme Court limits agency environmental reviews,' by POLITICO's Alex Guillén: 'The Supreme Court on Thursday ruled that federal agencies conducting environmental reviews can take a more limited view of the impacts of transportation and energy infrastructure projects they are permitting. The 8-0 ruling follows years of lower courts demanding broader consideration of the effects of projects like liquefied natural gas export terminals and energy-moving projects like rail lines and pipelines to account for the climate effects of fossil fuels that move through them and will later be burned.'
3. MIDDLE EAST LATEST: Earlier today, Israel once again bombarded Gaza, where 'local health officials said more than 60 people had been killed over the past day, as hungry Palestinians scrambled for food handouts under a new Israeli-backed aid operation that has been heavily criticized,' NYT's Isabel Kershner and Rawan Sheikh Ahmad report. 'The United Nations says the new aid system is insufficient to meet basic needs for survival. In a reflection of the chaotic atmosphere surrounding aid distribution and the desperation of much of the population, a large crowd of hungry people broke into a Gaza warehouse run by the U.N.'s World Food Program on Wednesday in search of food.'
4. RUSSIA RAMPING UP: Against the backdrop of the pressure campaign on Russian President Vladimir Putin to commit to ceasefire negotiations, 'The Kremlin's summer offensive appears to be underway,' NYT's Anatoly Kurmanaev reports. 'Russian forces are advancing on Ukrainian battlefields at the fastest pace this year. They are bombarding Ukrainian cities with some of the biggest drone and missile strikes of the war. They have even opened another front in northern Ukraine. … Military analysts say it is clear that Russian forces this month began their latest concerted attempt to achieve a breakthrough, even as Moscow's representatives have engaged in the first direct peace talks with Ukraine since 2022.'
5. TRAIL MIX: Michigan GOP Rep. Bill Huizenga has been prepping for a potential run at the Wolverine State's open Senate seat and plans to make a final decision this summer, POLITICO's Adam Wren scoops. Huizenga's entry would defy national Republicans, who have been aiming to clear the field for former Rep. Mike Rogers' second attempt at the office (and are eager to keep Huizenga running in what might otherwise be a competitive House seat).. .… Harry Jarin is challenging Rep. Steny Hoyer, with the 35-year-old drawing a stark line on age as he attempts to unseat the 85-year-old Maryland Democrat. Jarin told POLITICO's Andrew Howard that Dems need to 'stop treating congressional seats like lifetime appointments.'
More moves: Alabama AG Steve Marshall is jumping into the Senate race for Tommy Tuberville's seat, noting his ardent opposition to the Biden administration's policies, The Washington Examiner's David Sivak reports. … Annie Andrews, a South Carolina Democrat and doctor, is launching a bid to unseat Sen. Lindsey Graham (R-S.C.). Andrews, who previously unsuccessfully ran against Rep. Nancy Mace (R-S.C.), joins one other Democrat already in the field. More from AP's Meg Kinnard
6. EYES ON THE SKIES: A mass exodus is 'building across' the FAA, 'potentially affecting divisions that oversee everything from air traffic to legal matters and space launches,' WSJ's Andrew Tangel reports. An internal presentation to senior management stated that employees are leaving 'across all skill levels.' The May 7 presentation 'flagged departures of senior leaders, technical experts and mission-support employees that it said would result in losing critical competencies and institutional knowledge. A similar presentation by the agency's human-resources staff tallied more than 1,200 employees who were departing under the program.'
7. A MAHA MOMENT: HHS Secretary Robert F. Kennedy Jr.'s Make America Healthy Again Commission last week released its marquee report, 'citing more than 500 studies and other sources to back up its claims. Those citations, though, are rife with errors, from broken links to misstated conclusions. Seven of the cited sources don't appear to exist at all,' NOTUS' Emily Kennard and Margaret Manto report.
A snapshot: 'Epidemiologist Katherine Keyes is listed in the MAHA report as the first author of a study on anxiety in adolescents. When NOTUS reached out to her this week, she was surprised to hear of the citation. She does study mental health and substance use, she said. But she didn't write the paper listed.'
8. FOR YOUR RADAR: 'Far-right activist with history of anti-gay comments fired from leadership role at Kennedy Center after CNN investigation,' by CNN's Andrew Kaczynski: 'Floyd Brown, a far-right political activist with a history of anti-gay rhetoric and promoting conspiracy theories about former President Barack Obama, said he was fired from a senior leadership role he briefly held at the Kennedy Center — just hours after CNN reached out with questions about his past statements. … Brown briefly served as a Vice President of Development, a top fundraising role responsible for helping raise tens of millions of dollars annually in support of the nation's most prominent performing arts center.'
How it went down: 'His appointment, which had not been formally announced by the Kennedy Center, had sparked internal concern among some staffers, according to sources. … In an email to CNN on Wednesday, Brown … defended his remarks as rooted in his Christian faith and said they did not influence his professional conduct. … Later on Thursday morning, Brown posted a lengthy note on X explaining his dismissal and criticizing Richard Grenell, the Kennedy Center's president, who is gay. Brown claimed in an email he was asked to 'recant' his belief that marriage is only between a man and a woman.'
TALK OF THE TOWN
Ronna Romney McDaniel is back in the political game with a new gig as CEO of a new battleground group in Michigan backed by the DeVos family.
IN MEMORIAM — 'Harrison Tyler, preservationist and grandson of 10th president, dies at 96,' by WaPo's Andrew Jeong: 'Mr. Tyler's life was intertwined with those of his famous ancestors. His grandfather, the 10th president of the United States, was born in 1790, when George Washington was serving his first term as president, and served himself from 1841 to 1845. Mr. Tyler was also related to President William Henry Harrison, Pocahontas and Edmund Ruffin, a pro-slavery secessionist who fought in the Civil War.'
MEDIA MOVE — Matthew Vann is now a senior writer for 'CNN This Morning.' He previously was a senior producer at ABC.
TRANSITIONS — The National Association of Realtors is adding Bennett Richardson as SVP of marketing and comms and Raffi Williams as VP of comms. Richardson previously was general manager at Semafor and is a POLITICO alum. Williams previously was VP of comms at the Manage Funds Association. … Stacey Geis is now senior counsel for Crowell & Moring's environment, energy and natural resources and white collar and regulatory enforcement groups. She previously was deputy assistant administrator at the EPA. …
… Kevin Barstow is joining O'Melveny as a partner in its health care practice group and congressional investigations team. He previously was senior counsel and special assistant to the president in the Biden White House. … Former Sen. Jon Tester (D-Mont.) is joining Unite the Country as a senior adviser.
WELCOME TO THE WORLD — Hari Sevugan, CEO of Narrator Message & Media and a Pete Buttigieg, Barack Obama and DNC alum, and Emily Abrams, VP at NationSwell and a Buttigieg alum, on May 20 welcomed Noa Sevugan.
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