Business & Economy

On The Money — Sponsored by Prudential — Senators hammers Ross on Trump tariffs | EU levies tariffs on US goods | Senate rejects Trump plan to claw back spending

Happy Wednesday and welcome back to On The Money, which is still a little too long to fit on a postcard. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL–Ross skewered by Senate on tariffs: Senators hammered Commerce Secretary Wilbur Ross Wednesday over the Trump administration’s tariffs during a contentious hearing on Capitol Hill.

Ross faced a wall of bipartisan criticism with senators questioning President Trump’s trade actions and expressing fears over retaliation from trading partners.

On the hot seat, Ross defended the tariffs as necessary to protect American businesses.

“Actions taken by the president are necessary to revive America’s essential steel and aluminum industries,” Ross told lawmakers on the Senate Finance Committee. “Allowing imports to continue unchecked threatens to impair our national security.”

The heated hearing comes as lawmakers in both parties have raised alarm over Trump’s moves in recent weeks to implement a series of tariffs on China as well as U.S. allies, including Canada, Mexico and the European Union.

Those tariffs have rattled markets and sparked anger in the business community, which has warned they could lead to job losses, damage growth and undercut any gains from the GOP tax law.

The Hill’s Vicki Needham takes us to the testy showdown here.

 

Reactions:

 

More homework for Ross: Sen. Bob Corker (R-Tenn.) is pressing the Trump administration for details on the implementation of tariffs on steel and aluminum imports.

Corker, the chairman of the Senate Foreign Relations Committee, sent a letter on Wednesday to Ross asking for details on how the Commerce Department is deciding which countries will be exempted from the steep financial penalties, which he said were having “damaging” effects on U.S. businesses.

 

 

ON TAP TOMORROW

 

LEADING THE DAY

EU levies tariffs on $3.2B on US goods over metals duties: The European Union on Friday will slap billions in additional tariffs on U.S. exports in reaction to President Trump’s steel and aluminum tariffs.

The EU said on Wednesday that it will impose a 25 percent tariff on $3.2 billion in American goods ranging from Harley-Davidson motorcycles to jeans and bourbon, the European Commission in Brussels announced.

“We did not want to be in this position,” EU Commissioner for Trade Cecilia Malmström said in a statement.

“However, the unilateral and unjustified decision of the U.S. to impose steel and aluminum tariffs on the EU means that we are left with no other choice,” Malmström said.

Vicki Needham has more about the transatlantic trade tensions here.

 

Senate rejects Trump plan to claw back spending: The Senate on Wednesday narrowly rejected President Trump’s plan to claw back roughly $15 billion in spending approved by Congress earlier this year.

In a 48-50 vote, senators failed to discharge the measure from committee. A majority vote was needed.

GOP Sens. Richard Burr (N.C.) and Susan Collins (Maine) joined 48 members of the Democratic caucus in voting against bringing up the bill.

The Hill’s Jordain Carney tells us why here.

 

MARKET CHECK: Reuters: “The Nasdaq closed at a record on Wednesday, lifted by a climb in large-cap tech and consumer discretionary names, while the Dow and S&P 500 were hemmed in as concerns over an escalation in the U.S.-China trade skirmish simmered.

The Dow Jones Industrial Average fell 42.41 points, or 0.17 percent, to 24,657.8, the S&P 500 gained 4.73 points, or 0.17 percent, to 2,767.32 and the Nasdaq Composite added 55.93 points, or 0.72 percent, to 7,781.52.”

 

GOOD TO KNOW

 

 

ODDS AND ENDS

 

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