The Trump era, phase two
With help from Eli Okun, Bethany Irvine and Ali Bianco
On today's Playbook Podcast, Zack Stanton and Megan Messerly talk about the new phase of Donald Trump's presidency and what we can tell from the very public fights he picks.
Happy Friday. Zack Stanton here as another whirlwind work week draws to a close. Get in touch.
YOUR FRIDAY LONGREAD: 'The Devil on Mike Lee's Shoulder,' by Samuel Benson for POLITICO Magazine: 'The Utah senator's online persona has further damaged his already frayed relationship with The Church of Jesus Christ of Latter-day Saints.'
FIRST IN PLAYBOOK — Your Friday watch: In a new clip from an interview with Playbook's Dasha Burns for 'The Conversation,' border czar Tom Homan revealed that he is unsure of the status of eight men deported to South Sudan — including their treatment and whether or not they're being detained there. Watch the clip on YouTube
Homan defended the Trump administration's decision to deport migrants to nations including South Sudan and El Salvador — despite those countries' history of human rights abuses, and despite the migrants' lack of connections to those places — saying that the arrangements are crucial to the president's mass deportation agenda. The full episode drops on Sunday. Read more from POLITICO's Myah Ward and Kyle Cheney
In today's Playbook …
— The page turns to a new chapter of Trump's presidency.
— Texas' status as a high-stakes gamble for Republicans deepens.
— How Trump continues to run as an outsider despite being elected president.
DRIVING THE DAY
PHASE TWO BEGINS: The start of any presidency begins with an acknowledgement that the clock is already running. Every new administration enjoys a window of time during which it can pursue one or two signature legislative wins before Washington, as if driven by mainspring, turns its gaze to the coming midterm elections.
What happens in that window are the sort of household-name accomplishments each administration can boast. For Joe Biden, it was Build Back Better, which passed in fall 2021. For first-term Trump, it was the 2017 tax cuts he signed in December of that year. For Barack Obama, it was the Recovery Act and then — because he came into office with such large Democratic majorities in both houses — the Affordable Care Act, which spilled over into 2010. For second-term Trump, it is the One Big, Beautiful Bill.
And that's that. The window has closed. 'The White House won't push for another big legislative package between now and next November,' The Atlantic's Jonathan Lemire, Michael Scherer and Ashley Parker report, citing 'five White House aides and outside advisers.'
The White House vibe shift: 'It really does feel like we're at this inflection point in the administration,' POLITICO White House reporter Megan Messerly tells me on this morning's Playbook Podcast. 'Especially this week, I feel it in my conversations moreso than I did before — the looming midterm elections just hanging over us and pressing down in a way that it really hasn't because we've just been so focused on this 'big, beautiful bill.''
Subtly but unmistakably, we have entered a new phase of the Trump presidency.
That does not mean they've thrown in the proverbial towel on their policy agenda. We are in the midst of a MAGA makeover of Washington (more on that in a bit), and the president's trade and immigration agenda will be front-and-center in the administration's messaging (more on that, too, shortly).
But it does mean that the midterms are occupying increasing mental bandwidth at 1600 Penn.
Today, the president visits Texas to tour flood-ravaged Kerrville (12:20 p.m.) and meet with the first responders (2:10 p.m.) whose heroism has been a spark of hope in an otherwise grim week of news there. But as Trump visits, the midterms won't be far from his mind — especially as the state is playing an increasingly vital role in his designs to hold a 2027 congressional majority.
In the House: This week, Trump has reportedly upped the pressure on Texas Gov. Greg Abbott to further gerrymander the Lone Star State in an attempt to eke out a few more GOP seats and help the party cling to its origami-thin House majority. Abbott, responding to this, has teed up the issue for a central role in a coming special session of the state legislature — even as a number of Republican incumbents privately hate the idea and worry it could backfire.
That push is risky. 'The 2021 map was drawn for incumbent protection in a wave year, which could also be the case next year if historical trends hold up,' writes Puck's Abby Livingston, who knows Texas politics better than just about anyone in D.C. 'To pick up new seats, Republican voters will need to be pulled from safe Republican seats to redden currently Democratic districts.'
The math: 'If Republicans go after three seats this way, the changes can probably be made with little fanfare and concentrate mostly on South Texas, which is trending toward the G.O.P. anyway,' Livingston writes. 'But if they go big — aiming for, say, five seats — the lines could make reelection much more difficult for Republican incumbents in Houston and Dallas.' (As the saying goes: Pigs get fat, hogs get slaughtered.)
And then there's the Senate, where Dems' hopes to retake the chamber seemed like little more than a pipe dream until recent days — and where a spate of news over the last 24 hours has prompted very real questions about just how confident Republicans should feel about their majority.
Senate Majority Leader John Thune tells the National Review's Audrey Fahlberg that he and the president spoke on Wednesday about how Trump can 'be a difference maker' in key Senate campaigns. In the sitdown with NR, Thune made mention of 'some interesting situations, like Texas' — which is perhaps a polite phrase for the position Republicans are in as incumbent Sen. John Cornyn trails primary challenger AG Ken Paxton in polls. Washington Republicans, of course, fear that Paxton may be the uniquely perfect candidate to oust Cornyn in the primary and then lose to a Democrat in the general.
Paxton bombshell: Yesterday, Republican state Sen. Angela Paxton, Ken's wife, announced that 'after 38 years of marriage,' she has 'filed for divorce on biblical grounds.' 'I have earnestly pursued reconciliation,' she wrote in a statement. 'But in light of recent discoveries, I do not believe that it honors God or is loving to myself, my children, or Ken to remain in the marriage.' (For his part, AG Paxton made it sound more amicable in his own statement: 'After facing the pressures of countless political attacks and public scrutiny, Angela and I have decided to start a new chapter in our lives,' he wrote.)
What exactly happened? The senator alleged in her divorce filing that her husband had committed adultery and said they haven't lived together in over a year, per the Texas Tribune. But it sure seems like another shoe may be about to drop, given the speed with which Washington Republicans have moved to condemn Paxton.
'What Ken Paxton has put his family through is truly repulsive and disgusting,' NRSC comms director Joanna Rodriguez said in a statement. 'No one should have to endure what Angela Paxton has, and we pray for her as she chooses to stand up for herself and her family.' … Senate Leadership Fund executive director Alex Latcham posted simply, 'Ezekiel 16:33,' a reference to a Bible passage about 'harlots' or 'whores,' depending on your translation.
Could this doom Paxton's Senate bid? Perhaps. But if we're talking simply about an affair between consenting adults, the Texas primary electorate of Trump's Republican Party has a very different attitude about these types of issues than the kinder, gentler GOP of the Bush era.
But the GOP's woes don't stop at Texas.
There's growing concern that Sen. Joni Ernst (R-Iowa) might call it quits, as POLITICO's Jordain Carney and Rachael Bade report. '[T]hree people granted anonymity to disclose private discussions said there is rising concern among fellow Senate Republicans that Ernst will retire rather than run for reelection, giving Republicans another seat to defend next fall.' (That said, if she does bow out, there's a strong Republican waiting in the wings: Rep. Ashley Hinson.)
None of which is to say that Democrats' path to a Senate majority is easy. But a plausible-if-unlikely path exists: If Roy Cooper flips the North Carolina seat getting vacated by Thom Tillis and if Paxton beats Cornyn then loses to a Democrat and if Ernst bows out and Dems flip the seat and then make one other shoot-the-moon pickup (Maine? Ohio?) … it could happen.
And then there's this: Senate Minority Leader Chuck Schumer tells NYT's Annie Karni that Trump's megabill has boosted Democratic odds — though, honestly, what else is he going to say? — and offered a preview of the message he'll be hammering into his Senate recruits: 'The three issues we're going to most campaign on: costs, jobs, and health care.'
But for our money, the most insightful quote in that article came not from Schumer, but from Jesse Stinebring, chief executive of Blue Rose Research, who puts a finer point on the longer-term political liability for Republicans, which has been glossed over in some of the coverage of the Medicaid cuts in the reconciliation package.
'What Republicans have forgotten is that the trifecta they have right now is a result of gains they have made with lower-income individuals, many of the same people who are Medicaid recipients,' Stinebring said. 'Their coalition has become much more working-class, and they are still operating under this model where these types of actions wouldn't have political consequences for them — and they absolutely will have consequences for them.'
All of which means that this next phase of the Trump era is going to be vital for Democrats, too: They need to litigate the megabill and hope to make Trump's signature legislative accomplishment a political albatross. Historical trends may be on their side; it's unclear yet if voters will be.
THE MAGA REVOLUTION
THE CONFLICT IS THE POINT: In an era with low trust in institutions, widespread frustration with politics and deep cynicism about Washington, how do you continue to win when you're the party already in power? By continuing to brand yourself as the outsiders — and picking fights that try to underscore that.
More than most politicians, Trump innately grasps a reality that drives our modern moment: Attention means power, and conflict generally means attention. Trump's ongoing MAGA revolution in Washington has concrete policy goals, but it has an overarching political one, too: driving a message that frames their actions time and again as those of outsiders going to war against the status quo.
That's the throughline that connects a seemingly disparate array of stories right now.
VS. federal workers: As soon as today, the State Department will begin firing hundreds of employees, CNN's Jennifer Hansler reports. … Meanwhile, the Justice Department is 'firing and pushing out employees … often with no explanation or warning,' contributing to a climate of fear across the department, per WaPo's Perry Stein. … And the FBI 'has significantly stepped up the use of' polygraph tests, NYT's Adam Goldman reports, including deploying them to ask 'senior employees whether they have said anything negative about' Director Kash Patel. The Times writes that it's part of a 'broader crackdown on news leaks, reflecting, to a degree, Mr. Patel's acute awareness of how he is publicly portrayed.'
VS. undocumented immigrants: Federal immigration agents 'carried out immigration sweeps at two Southern California cannabis farms,' the LA Times reports, 'prompting a heated standoff between authorities and several hundred protesters at a Ventura County site that resulted in several arrests and injuries.' During the raid, federal forces deployed tear gas against the demonstrators, per KTLA. (More of these types of confrontations could come in the months ahead, given the funding bump for immigration enforcement in the megabill.) … The administration also announced new efforts to cut off undocumented immigrants from being able to participate in Head Start, the federally funded preschool program, AP's Annie Ma reports.
VS. medical professionals: 'The Justice Department has issued subpoenas demanding confidential patient information from more than 20 doctors and hospitals that provide gender-related treatments to minors,' report NYT's Azeen Ghorayshi and Glenn Thrush. 'Most of the subpoenas … attempt to pierce powerful federal confidentiality protections for patients and their medical providers.'
VS. states run by Democrats: The DOJ 'announced Thursday that its Civil Rights Division is investigating the state of Minnesota for possible hiring discrimination' for policies aimed at boosting the hiring of underrepresented minority populations, POLITICO's Jacob Wendler reports. (Minnesota's governor is, of course, 2024 Democratic VP nominee Tim Walz.)
VS. anyone connected to Jan. 6 prosecutions: This week, the DOJ fired Patty Hartman, a 17-year veteran of the department and the 'fourth person connected to the agency's work on the Jan. 6, 2021, Capitol riots to be terminated in the past month,' per CBS' Scott MacFarlane. Notably, Hartman is not a prosecutor: she 'worked on the District of Columbia U.S. Attorney's Office public affairs team that distributed news releases about the more than 1,500 Jan. 6 criminal prosecutions.'
THE DOGE DAYS ARE OVER: Less than six months into the Trump era, and the once-feared DOGE crew is now 'shell of its former self, owing to departures, lawsuits, bureaucratic roadblocks and, crucially, the loss of its chainsawer-in-chief: [Elon] Musk,' POLITICO's Sophia Cai and Daniel Lippman report.
Among the departures: Steve Davis, who operationally led DOGE; Nicole Hollander, who led the effort to shrink the government's footprint; Brad Smith, who led the DOGE team at HHS; Chris Stanley, a Musk aide who helped install Starlink satellites on the roof of the Eisenhower Executive Office Building; Katie Miller, DOGE's comms director; Amanda Scales, former chief of staff at OPM; DOGE's chief counsel James Burnham, and Tom Krause, who served as fiscal assistant secretary of the Treasury.
BEST OF THE REST
A FIRST FOR TRUMP: In a momentous shift, Trump will send weapons to Ukraine under the Presidential Drawdown Authority — a power frequently invoked by Biden but which Trump has not yet employed in his presidency, Reuters' Mike Stone reports. Though a decision on the exact equipment that will be sent has yet to be made, it could include 'defensive Patriot missiles and offensive medium-range rockets.'
ELBOWS UP: The U.S. will impose a 35 percent tariff on Canadian goods starting next month, Trump said yesterday in an announcement that 'came in the midst of active trade negotiations between the two countries,' notes POLITICO's Seb Starcevic. Goods compliant with the USMCA trade deal will be exempt — at least for now, WSJ reports.
In explaining the move, Trump said Canada has failed to adequately stanch the flow of fentanyl into the U.S. In response, Canadian PM Mark Carney said in a statement that Canada 'has made vital progress to stop the scourge of fentanyl in North America,' and reiterated his commitment to work with the U.S. to 'save lives.'
ABOUT THAT 'OBLITERATION': 'Some of Iran's Enriched Uranium Survived Attacks, Israeli Official Says,' by NYT's David Sanger: 'Israel has concluded that some of Iran's underground stockpile of near-bomb-grade enriched uranium survived American and Israeli attacks last month and may be accessible to Iranian nuclear engineers.' But 'any attempts by Iran to recover it would almost certainly be detected — and there would be time to attack the facilities again.'
FIRST IN PLAYBOOK — Cash dash: Sen. Todd Young (R-Ind.) raised $1.1 million and ended the second quarter with $5.9 million cash on hand, Playbook's Adam Wren reports. Young is not up for reelection until 2028.
SEE YOU IN COURT: Mahmoud Khalil, the prominent Palestinian activist and former Columbia grad student, is suing the Trump administration for $20 million in damages, alleging he was 'falsely imprisoned, maliciously prosecuted and smeared as an antisemite as the government sought to deport him over his prominent role in campus protests,' AP's Jake Offenhartz reports.
SHOT: Sen. John Fetterman (D-Pa.) said of Zohran Mamdani: 'I'm not a voter in New York City, so I have no dog in that fight. And everything that I've read on him, I don't really agree with virtually any of it, politically. So that's just where I'm at as a Democrat. So he's not even a Democrat, honestly.' Watch the clip
Chaser: 'Fetterman and Mamdani used the same ad firm, started by Bernie vets,' Semafor's David Weigel notes.
THE WEEKEND AHEAD
TV TONIGHT — PBS' 'Washington Week': Zolan Kanno-Youngs, Ashley Parker, Tarini Parti and Nancy Youssef.
SUNDAY SO FAR …
POLITICO 'The Conversation with Dasha Burns': Tom Homan.
Fox News 'Sunday Morning Futures': Speaker Mike Johnson … Kevin Warsh … Carter Page … retired Gen. Jack Keane … Kevin McCarthy.
NBC 'Meet the Press': DHS Secretary Kristi Noem … Kentucky Gov. Andy Beshear. Panel: Adrienne Elrod, Sahil Kapur, Tyler Pager and Marc Short.
FOX 'Fox News Sunday': Rep. Chip Roy (R-Texas) … DHS Secretary Kristi Noem … Sen. Tom Cotton (R-Ark.). Legal panel: Tom Dupree and Andy McCarthy. Panel: Marc Thiessen, Francesca Chambers, Josh Kraushaar and Juan Williams.
NewsNation 'The Hill Sunday': Rep. Mike Lawler (R-N.Y.) … Rep. Suhas Subramanyam (D-Va.). Panel: George Will, David Weigel, Julie Mason and Julia Manchester.
CBS 'Face the Nation': Sen. Maria Cantwell (D-Wash.) … Rep. French Hill (R-Ark.).
MSNBC 'The Weekend': Rep. Debbie Dingell (D-Mich.) … Rep. Eugene Vindman (D-Va.).
CNN 'State of the Union': Rep. Tony Gonzales (R-Texas). Panel: David Urban, Faiz Shakir, Rep. Debbie Dingell (D-Mich.) and Kristen Soltis Anderson.
ABC 'This Week': Pete Gaynor and Deanne Criswell. Panel: Donna Brazile, Reince Priebus, Sarah Isgur and Neera Tanden.
TALK OF THE TOWN
Elon Musk unfollowed the X accounts of Katie Miller, Mike Lee and Karoline Leavitt.
Nick Adams, a self-described 'alpha male' personality on X, is Trump's pick to serve as ambassador to Malaysia.
'Tiger King' Joe Exotic is seeking a pardon from Trump.
IN MEMORIAM — 'Stan Baker, Who Played a Key Role in Bringing the First Civil Unions to the U.S., Dies at 79,' by WSJ's Chris Kornelis
PLAYBOOK METRO SECTION — The 'Queer Eye' remake has begun production on its final season — and it's in D.C., Netflix announced. Let us know who you think needs a makeover.
BOOK CLUB — Abby Phillip is releasing her first book, 'A Dream Deferred: Jesse Jackson and the Fight for Black Political Power' ($30.99), on Oct. 28. It examines Jackson, his two presidential campaigns and their impact.
OUT AND ABOUT — NobleReach, a nonprofit that helps to place recent graduates at federal, state and local agencies, held a graduation ceremony for its inaugural class of scholars yesterday at the Meridian International Center. SPOTTED: Brynt Parmeter, Justin Fanelli, Bert Kaufman and Ben Schwartz.
— Center Forward hosted its annual 'Off the Record' reception with House and Senate comms staffers at the Wharf last night SPOTTED: Cori Kramer, Riley Kilburg, Kaily Grabemann, Josh Sorbe, Leigh Ann Caldwell, Marianna Sotomayor, Kristen Hawn, Stacey Daniels, Mason Devers, Mary Ellen McIntire, Dylan Jones, Louie Kahn, Devin Dwyer, Justin Gomez, Niels Lesniewski, Stephen DeLeo, Sam Sweeney, Eric Fejer, Perry Mains, Elizabeth St. Onge, Rosie Wilson and Renata Miller.
MEDIA MOVES — WaPo is adding Tara Copp as a Pentagon correspondent and Noah Robertson to cover congressional national security committees. Copp most recently has been a national security reporter at the AP. Robertson most recently has been a Pentagon correspondent at Defense News.
TRANSITIONS — Evan Wolff is now a partner at Akin and co-head of its cybersecurity, privacy and data protection practice. He previously was a partner at Crowell & Moring. … Sam Mayper is joining M&T Bank as SVP of federal government relations. He previously was VP at the Independent Community Bankers of America. … Nick Weinstein is joining Cygnal as a pollster and principal. He previously was political director at the Republican Attorneys General Association and is a Daniel Cameron and Tom Reed alum.
ENGAGED — Rep. Guy Reschenthaler (R-Pa.) proposed to Brooke Singman, a political correspondent and reporter for Fox News Digital, during a picnic in Central Park on June 22. That was followed by afternoon tea at The Plaza and a dinner later at her favorite restaurant, Balthazar. They met the day Trump made his campaign stop at a McDonald's in Pennsylvania, and reconnected in January at Bistrot du Coin: She brought her laptop, thinking it could become an interview opportunity, but instead it turned into their first date. Pic … Another pic
— Ashley Forrester, director of strategic comms for Samsung Electronics America, and David Jones, co-founder of Capitol Counsel, got engaged Wednesday at Lake Como, Italy. They met at a mutual friend's birthday party several years ago. Pic
— Erin Drummy, a policy adviser for the Senate Steering Committee, and Mike Hardy, a software engineer for Systems Planning Analysis, got engaged on July 3. Hardy popped the question in his hometown Warren, New Jersey, after the megabill delayed things by a week. The couple met through mutual friends in D.C. Pic
WELCOME TO THE WORLD — Caroline Welles, executive director of the First Ask, and Harrison Hart, an associate at DC Advisory, this week welcomed Hugo Edward Welles-Hart. Pic
HAPPY BIRTHDAY: Sen. Ed Markey (D-Mass.) … Rep. Kristen McDonald Rivet (D-Mich.) … Scott Graves … former Education Secretary Miguel Cardona (5-0) … Garrett Graff … Chris Maloney of Black Rock Group … Sandy Marks … Josh Wachs of Wachs Strategies … Emily Benavides … Matt Lahr of Sen. Todd Young's (R-Ind.) office … Nora Connors … Michael Wong of the Bank Policy Institute … KayAnn Schoeneman … Paige Rusher of Seven Letter … Anne Sokolov … Ishmael Abuabara of Rep. Joaquin Castro's (D-Texas) office … Joe Wall … Chris Vaeth … Ali Schmitz of PBS NewsHour … Stephen Hostelley … Jamie Stiehm … Bailey Hansen of the Herald Group … POLITICO's Sophie Read and Faith Mitchell … Katie Sokolov … Tom Pinkh of Sole Strategies … Urmila Venugopalan of the MPA … Page Gardner
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World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. EU-US trade agreement preliminary details Here are some Bloomberg terminal headlines with various details on the agreement reached between President Trump and European Commission President Ursula von der Leyen: *TRUMP: WE HAVE REACHED A DEAL WITH EU *TRUMP: EU WILL AGREE TO BUY US $750B WORTH OF ENERGY *TRUMP: EU WILL AGREE TO INVEST $600B MORE THAN PREVIOUSLY IN US *EU'S VON DER LEYEN: TREADE DEAL WITH US WILL BRING STABILITY *VON DER LEYEN: AGREED TO 15% ACROSS THE BOARD TARIFFS The asserted details of the framework are not yet fully confirmed. Here are some Bloomberg terminal headlines with various details on the agreement reached between President Trump and European Commission President Ursula von der Leyen: *TRUMP: WE HAVE REACHED A DEAL WITH EU *TRUMP: EU WILL AGREE TO BUY US $750B WORTH OF ENERGY *TRUMP: EU WILL AGREE TO INVEST $600B MORE THAN PREVIOUSLY IN US *EU'S VON DER LEYEN: TREADE DEAL WITH US WILL BRING STABILITY *VON DER LEYEN: AGREED TO 15% ACROSS THE BOARD TARIFFS The asserted details of the framework are not yet fully confirmed. SCMP reports China-US another 90-day tariff extension The South China Morning Post (SCMP) reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." More from the Hong-Kong-based SCMP: Read more here. The South China Morning Post (SCMP) reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." More from the Hong-Kong-based SCMP: Read more here. Lutnick: EU has to offer Trump 'a good enough deal' to avoid 30% tariffs As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1. Reuters reports Lutnick said the EU appeared to want to make a deal: On Friday, Trump said the odds of a trade deal with the EU were about "50-50," even as negotiators from both sides expressed optimism. Read more here. As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1. Reuters reports Lutnick said the EU appeared to want to make a deal: On Friday, Trump said the odds of a trade deal with the EU were about "50-50," even as negotiators from both sides expressed optimism. Read more here. LG says consumers rushed to buy appliances ahead of tariffs Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Japan says $550 billion investment could finance Taiwanese chipmaker in US The $550 billion President Trump said Japan gave to the US "to lower their tariffs a little bit," could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday. Trump on Thursday called the $550 billion "seed money" and that 90% of profits from the money invested would go to the US. "It's not a loan or anything, it's a signing bonus," Trump said. Read more here. The $550 billion President Trump said Japan gave to the US "to lower their tariffs a little bit," could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday. Trump on Thursday called the $550 billion "seed money" and that 90% of profits from the money invested would go to the US. "It's not a loan or anything, it's a signing bonus," Trump said. Read more here. More cracks form in the US-Japan trade agreement We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal. The Financial Times has a good, detailed look at some of the "cracks" forming: Read more here (subscription required). We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal. The Financial Times has a good, detailed look at some of the "cracks" forming: Read more here (subscription required). EU head to meet with Trump this weekend in bid to clinch deal Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Trump: 'We haven't really had a lot of luck with Canada' President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: Boston Beer Company says strong profits helped brewer absorb tariff costs The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." Some headlines from Trump on tariffs this morning Via Bloomberg: Via Bloomberg: Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


New York Post
8 minutes ago
- New York Post
Trump ‘really likes' TikTok— but admin warns Chinese ownership not acceptable as dead deadline looms
President Trump likes TikTok but the Chinese-owned short video app, used by some 170 million Americans, has to move to US ownership, Secretary of Commerce Howard Lutnick said on Sunday. 'The President really likes TikTok, and he said it over and over again, because, you know, it was a good way to communicate with young people,' Lutnick said in an interview on Fox News Sunday with Shannon Bream. 'But let's face it, you can't have the Chinese have an app on 100 million American phones, that is just not okay. So, it's got to move to American ownership, it's got to move to American technology, American algorithms,' he said. 'I know the President is positive towards TikTok, if it can move into American hands.' Advertisement 3 Commerce Secretary Howard Lutnick said Sunday that President Trump likes TikTok because 'it was a good way to communicate with young people.: FOX NEWS Lutnick's comments follow his warning last week that TikTok will have to stop operating in the U.S. if China does not approve a deal for the app. He told CNBC on Thursday that US must control the algorithm that makes the social media platform work. Advertisement TikTok parent ByteDance has a Sept. 17 deadline to divest the platform's US assets. Last month, President Trump extended by 90 days to Sept. 17, a deadline for China-based ByteDance to divest the US assets of TikTok. Trump's action took place despite a 2024 law that mandated a sale or shutdown by Jan. 19 of this year if there had not been significant progress. 3 President Trump has set a Sept. 17 deadline for Chinese firm ByteDance to divest TikTok's US assets. Getty Images 'China can have a little piece or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm,' Lutnick said. Advertisement 'If that deal gets approved, by the Chinese, then that deal will happen,' he added. 'If they don't approve it, then TikTok is going to go dark, and those decisions are coming very soon.' 3 A deal that was in the works this spring that would spin off TikTok's US operations into a new US-based firm stalled. Chidori_B – A deal had been in the works this spring that would spin off TikTok's US operations into a new US-based firm, majority-owned and operated by US investors. This stalled after China indicated it would not approve it following Trump's announcements of steep tariffs on Chinese goods. Trump has three times granted reprieves from federal enforcement of the law that mandated the sale or shutdown of TikTok that was supposed to take effect in January.