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Politico
29-05-2025
- Business
- Politico
Playbook PM: Another hit on Trump's tariffs
Presented by 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 gross@ 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. Send Playbookers tips to playbook@ or text us on Signal here. Playbook couldn't happen without our editor Zack Stanton, deputy editor Garrett Ross and Playbook Podcast producer Callan Tansill-Suddath.
Politico
12-05-2025
- Business
- Politico
US-China hit pause on sky-high tariffs
With help from Doug Palmer QUICK FIX — The United States and China slashed tariffs on each other's goods in a surprise breakthrough aimed at reviving trade between the economies. — British plane and aircraft parts are exempt from any potential tariffs that could stem from the Trump administration's latest Section 232 investigation. — Alabama Republicans are asking the Commerce Department to set tariff rates on lumber to at least 60 percent. It's Monday, May 12. Welcome to Morning Trade. Got news tips? Suggestions? Want to grab a coffee? Hit us up at: ahawkins@ ddesrochers@ and dpalmer@ Follow us on X: @_AriHawkins, @drdesrochers and @tradereporter. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day TARIFFS DELAYED: The United States and China agreed to slash tariffs on each other's imports for 90-days, and implement a new platform to resolve trade disputes, according to a joint statement from Geneva. Starting Wednesday, the U.S. will temporarily lower its tariffs on Chinese imports from 145 percent to 30 percent, while the Chinese side will drop measures from 125 percent to 10 percent. 'We want more balanced trade. And I think that both sides are committed to achieving that,' Treasury Secretary Scott Bessent said at a joint press conference from Switzerland, where Trump administration officials were meeting with the Chinese delegation. 'We would like to see, China open to more U.S. goods. We expect that as a negotiation to proceed.' The countries' joint statement says that the U.S. and China will 'establish a mechanism to continue discussions about economic and trade relations,' which will be led by China's Vice Premier He Lifeng, alongside Bessent and U.S. Trade Representative Jamieson Greer. Senior U.S. officials said the countries also discussed fentanyl, and that negotiations may lead to 'purchasing agreements' by China. 'Both sides represented their national interests well, but we also concluded that we had shared interests and that neither side was interested in a decoupling,' Greer said at the press conference. Some context: The update comes after both the U.S. and China touted substantial progress in negotiations over the weekend, and as commerce between the countries begins to grind to a halt, as American retailers suspend orders, prompting fears of shortages. Both President Donald Trump and Chinese leadership had gotten increasingly desperate to nail down an off-ramp to trade tensions in recent months. The latest agreement could also lay the groundwork for future negotiations toward a broader trade pact, in the vein of the so-called Phase 1 deal. Rewind: Trump spent his first few months in office trying to compel Chinese leader Xi Jinping to the bargaining table. Unlike other countries targeted by U.S. tariffs, China has not rushed to request consultations nor offered deals to cut its trade barriers — rather it has retaliated with higher tariffs of its own. That prompted an escalating tit-for-tat on trade that has made it prohibitively expensive for the two countries to buy each others' goods. Around the World AEROSPACE EXEMPT: British plane parts are exempt from any new tariffs that could stem from the Trump administration's latest national security investigation into imports of commercial aircraft, jet engines and their parts, a White House official confirmed to your host. The exemption is part of the evolving terms of the U.S.-U.K. framework that both sides announced last week, the White House said. The countries' agreement eliminated some trade barriers and laid out negotiations for more contentious sticking points, such as the U.K.'s Digital Services Tax. Reminder: Commerce on May 1 launched an investigation into imports of commercial aircraft, jet engines and their parts, laying the groundwork for another round of tariffs, according to a filing made public on Friday. A full document on the investigation is set to be published tomorrow. FYI: The aerospace industry produces among the largest trade surplus of any sector in the U.S., and many companies rely on specialized suppliers for parts that are sometimes produced only by select manufacturers scattered around the world. Around the World U.K. BEEF DEAL COULD HURT BRAZIL: The U.K.'s gain could be Brazil's loss. The framework agreement announced last week gives the U.K. a 13,000 metric ton low-duty quota to ship beef to the United States. That will come out of the 65,000 metric ton quota for 'Other Countries' that don't have a specific quota allocation. Brazil is the largest user of the Other Countries quota, often supplying more than 90 percent. The U.K. agreement also increases a duty-free quota for the U.S. to ship beef to the U.K. to 14,000 metric tons, from 1,000 tons previously. That's expected to be reserved for beef from cattle raised without artificial growth hormones. The industry hopes for 'more details soon on how the quotas will be implemented,' Kent Bacus, executive director of the National Cattlemen's Beef Association, told Morning Trade. The beef concession to the U.K. could complicate trade talks with Brazil, which has long wanted more access to the United States for its agricultural products. On The Hill ALABAMA GOP WANT LUMBER TARIFFS: Alabama Republicans are asking the Trump administration to set the duty rate on timber and lumber products to at least 60 percent, as it pursues a Section 232 investigation, according to a letter first obtained by Morning Trade. 'In recent years, our $12 billion domestic cabinet industry has been devastated by unfairly traded imports of kitchen cabinets and cabinet components,' wrote Sens. Katie Britt and Tommy Tuberville, as well as Reps. Barry Moore, Gary Palmer, Mike Rogers, Dale Strong and Robert Aderholt in a note sent Thursday to Lutnick and Undersecretary of Commerce for Industry and Security Jeffrey Kessler. The Alabama Republicans note that the U.S. kitchen cabinet industry supports 250,000 jobs around the country and 5,000 in Alabama, and warn some U.S. manufacturers are operating at as low as 30 percent capacity. Reminder: Trump in March ordered an investigation focused on the lumber industry as part of a broader strategy aimed at making the United States self-sufficient in timber and lumber production. 'IN THE DARK': Sen. Elizabeth Warren (D-Mass.) and Rep. Rosa DeLauro(D-Conn.) said the Trump administration has failed to communicate the status of trade talks to Congress. 'The public has been left completely in the dark on the status of these negotiations—or forced to rely on vague, second-hand accounts of private meetings, including those that Secretary Bessent is reportedly holding with well-connected industry insiders,' the lawmakers wrote in a letter dated Thursday and sent to Lutnick, Bessent and Greer. TRADE OVERNIGHT — Taiwan trumpets investments as it seeks to avoid US tariffs, POLITICO Pro reports. — USDA re-pauses livestock imports from Mexico as screwworm risk grows, POLITICO Pro reports. — US senator introduces bill calling for location-tracking on AI chips to limit China access, per Reuters. — Trade war is about more than just trade, China's official news agency argues, per POLITICO Pro. THAT'S ALL FOR MORNING TRADE! See you again soon! In the meantime, drop the team a line: dpalmer@ ddesrochers@ and ahawkins@ Follow us @POLITICOPro and @Morning_Trade.
Politico
10-02-2025
- Business
- Politico
Up next? Another tariff blitz
With help from Doug Palmer QUICK FIX — President Donald Trump said he is announcing 25 percent tariffs on all steel and aluminum products today. — The European Union, India and Brazil are among the trading partners that would face harsh tariff hikes if Trump makes good on his promise to impose 'reciprocal' tariffs. — Trump's pivot on Nippon Steel's attempted acquisition of U.S. Steel sparked mixed reactions from free-market advocates and pro-tariff protectionists. It's Monday, Feb. 10. Welcome to Morning Trade. Got news tips? Suggestions? Want to grab a coffee? Hit us up at: ahawkins@ and dpalmer@ Follow us on X: @_AriHawkins and @tradereporter. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day NEW TARIFFS NOW: Trump will announce he is imposing 25 percent duties on all steel and aluminum imports today, including on countries that negotiated tariff exemptions such as Mexico and Canada. 'Any steel coming into the United States is going to have a 25 percent tariff — aluminum too,' Trump said on Air Force One on Sunday as he traveled to New Orleans for the Super Bowl. Reminder: The U.S. maintains 25 percent tariffs on steel and 10 percent tariffs on aluminum for many countries, which the first Trump administration imposed in 2018 under Section 232 of the 1962 Trade Expansion Act. Several trading partners negotiated to modify the duties. Your host has more on that here. WHO WILL BE HIT: Also on Air Force One, Trump reiterated his plan for 'reciprocal' tariffs, which he said could come as soon as Tuesday or Wednesday. Trump told reporters, if countries are 'charging us 130 percent and we're charging them nothing. It's not going to stay that way,' Trump said. 'Every country will be reciprocal.' While the president has yet to clarify how exactly those duties would be imposed, reciprocal means that the U.S. would impose equal tariffs on imports from countries that have higher tariffs on U.S. goods. Morning Trade has your rundown on who could be hit the hardest. Background: Under the World Trade Organization system, tariff rates for a particular product, like cars, can vary widely from one country to the next. However, whatever tariff rate a country has in place for a particular product generally applies to all other countries under what is known as 'most favored nation' treatment. In other words, the U.S.' 2.5 percent tariff on passenger cars is the same for all other countries, unless they have a free trade agreement with the United States. Similarly, the EU's 10 percent tariff on cars applies to all other countries, unless they have a free trade agreement with the EU. European Union The European Union applies a 10 percent tariff on cars, and also imposes tariffs on some agricultural products, such as beef and pork, as well as chemical imports. Reminder: As of now, the U.S. imposes tariffs of 2.5 percent on passenger vehicles and 25 percent on light trucks/SUVs. European Parliament member Bernd Lange told the Financial Times in a recent interview that the bloc is considering lowering its 10 percent import duty closer to the 2.5 percent charged by the U.S., as it looks to stave off a costly trade war and find ways to cut its surplus with Washington. India Meanwhile, India's average tariff rate is much higher than that of the U.S., averaging around 10.66 percent compared to the U.S.'s average rate of between two to three percent. India imposes stiff tariffs on motorcycles and certain agricultural and technology products, including those from the United States. It also has a hefty 150 percent tariff on certain alcoholic beverages. The U.S. comparatively has minor tariffs on products that India exports. Something to watch: Trump and Indian Prime Minister Narendra Modi could get a chance to hammer out disputes during a meeting scheduled for Wednesday in their first meeting since Trump returned to the White House for a second term. Brazil Brazil imposes relatively high tariffs on a wide range of U.S. imports, with an average rate of around 12 percent, as of 2022, according to data from Trading Economics. The country also has high tariffs on key agricultural products: 18 percent on cheese and 14.4 percent on butter. As well as an 18 percent tariff on ethanol imports from the United States. Brazil, like many other countries, faces an additional 25 percent duty on its steel exports to the United States because of tariffs that Trump imposed in 2018. INSIDE THE ADMINISTRATION PIVOT ON NIPPON: Trump suggested on Friday that Japan's Nippon Steel could be moving forward with an investment into U.S. Steel rather than an outright purchase, presenting a potential resolution after Biden blocked the deal. 'We're doing it as an investment, no longer a purchase,' Trump said during a joint press conference following Trump's meeting with Japanese Prime Minister Shigeru Ishiba. 'Thank you, President Trump, for your interest in a thriving future for U. S. Steel,' U.S Steel wrote on a photo they posted on X of CEO David Burritt and Trump over the weekend. But Trump, who recently reiterated his opposition, still earned backlash from pro-tariff forces in Washington, who generally agree with Trump's aggressive approach to trade. The tariff-supporting lobbying group Coalition for a Prosperous America, called on the president to not approve Nippon's plans to invest and acquire a stake in the American steel giant. 'Nippon Steel is a state-backed predator that has a rap sheet of bad behavior, including unlawful dumping, that has weakened U.S. Steel, America's domestic steel industry, and our national security,' said Zach Mottl, chair of CPA. REGULATORY REVIEW U-TURN ON DE MINIMIS: The White House rolled back its decision to block China's access to benefits under the de minimis trade provision that enables companies to ship low-priced goods into the United States duty-free. De-minimis benefits will be restored, 'but shall cease to be available for such articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue,' on the shipments, the order said. 'This new order appears to concede, at least for now, that the United States does not have in place the systems in place it would need to collect tariffs on the enormous and growing number of de minimis shipments each year from China,' Tim Brightbill, a trade attorney at the law firm Wiley Rein in DC said in remarks sent to Morning Trade. GREER VOTE ON DECK: The Senate Finance Committee will mark up the nomination of Trump's choice to lead the Office of the U.S. Trade Representative Jamieson Greer on Tuesday, committee chair Mike Crapo (R-Idaho) announced. Greer, who is among the least controversial of Trump's nominees, is widely expected to sail through the nomination process. TRADE OVERNIGHT — Top China hawks on Capitol Hill open to possible TikTok deal, POLITICO Pro reports. — Trump's Tariffs Could Squeeze the Supreme Court, POLITICO reports. — Trump tariffs poised for courtroom showdown, POLITICO Pro reports. — Trump administration withholds funds for farmers despite court orders, per POLITICO Pro. THAT'S ALL FOR MORNING TRADE! See you again soon! In the meantime, drop the team a line: dpalmer@ and ahawkins@ Follow us @POLITICOPro and @Morning_Trade.
