BACK FROM THE BRINK, FOR NOW: The day that started with President Trump calling out members of Congress as "weak politicians" for opposing his tariff proposals, ended with a surprise agreement between the U.S. and the European Union with the U.S. pausing the current wave of proposed tariffs. Trump and European Committee President Jean Claude Juncker also announced that the two trading partners will "work to eliminate tariffs on all non-auto industrial goods, increase cooperation on energy purchases and work together to reform the World Trade Organization." Trump agreed to "reassess" the steel and aluminum tariffs in place and in turn, the EU agreed to purchase additional U.S. soybeans - and will import liquefied natural gas from the U.S. at some point in the future. The de-escalation will ratchet down the increasingly heated rhetoric and give the U.S. and EU time to pursue common goals - but by no means will the road ahead be smooth.
DON'T CALL IT A BAIL OUT: Farmers affected by the global retaliation to tariffs put into place by Trump are slated to get a total of $12 billion under an aid package that Agriculture Secretary Sonny Perdue announced yesterday. The plan was quickly criticized by Republican lawmakers from some of the states most affected by the trade tensions, many of whom said they would prefer an end to the conflict. Just prior to the meeting with Trump and Juncker, Cecilia Malmström, the EU's top trade official, stated that the EU was preparing approximately $20 billion in retaliatory tariffs against the United States if ongoing talks between Brussels and Washington fail to prevent U.S. duties on automotive imports from the European Union.
TO RUSSIA - WITH LOVE: While half of Congress is slated for recess for the next 39 days, the other chamber will be in session dealing with a multitude of issues (there's a reason it's called the world's most deliberative body). On the heels of heated testimony by Secretary of State Mike Pompeo before the Senate Foreign Relations Committee yesterday will come a focus on Russia - with Majority Leader Mitch McConnell set to consider everything from the August 2017 Russia sanctions bill Trump reluctantly signed to additional sanctions measures against the 12 Russian military saboteurs as well as bipartisan legislation we mentioned last week sponsored by Senators Marco Rubio (R-FL) and Chris Van Hollen (D-MD) that would automatically slap sanctions on Russia should they interfere with the upcoming November midterms. Good thing Trump delayed the next face-to-face with Vlad.
BIPARTISAN BANK BILL: The House Financial Services Committee unanimously advanced legislation aimed at making it easier for federal and state financial regulators to work together on examining banks' third-party relationships, as well as a bill to establish a task force on financial technology.
TRUMP'S REIGN OF TARIFFS (Cont.): We hosted one of Washington's top trade analysts, Chad Bown of the Peterson Institute, and covered the span of Trump's latest tariff proposals and their impact: Steel and Aluminum, China, auto and auto-parts - and wrapped with an update on NAFTA. You can access the replay here.
INVITE TODAY @10AM | LESS TALK, MORE ACTION | RULEMAKING BEGINS ON DRUG PRICE POLICY: Join Emily Evans and the healthcare team as they cover the response to RFI, safe harbor proposed rule, drug importation and more. CVS, ESRX, UNH, CAH, MCK, CI, AET, PFE, NVS. Find the call information here.
