Happy Monday and welcome back to On The Money, which arrived in D.C. late Sunday afternoon ahead of President Trump’s announcement of his next Supreme Court nominee. 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: President Trump on Monday suggested that China might be interfering with the denuclearization of North Korea because of the rising trade tensions between Beijing and the United States.
“I have confidence that Kim Jong Un will honor the contract we signed &, even more importantly, our handshake,” Trump tweeted. “We agreed to the denuclearization of North Korea. China, on the other hand, may be exerting negative pressure on a deal because of our posture on Chinese Trade-Hope Not!”
Trump’s comments come three days after the U.S. and China imposed tariffs on billions of dollars worth of each other’s exports, the latest escalation of a burgeoning trade war. The Trump administration targeted $34 billion worth of Chinese imports, while Beijing fired back with reciprocal tariffs on American agricultural imports.
Beijing’s tariffs on U.S. foodstuffs such as soybeans and lobsters could lead to steep losses for American farmers dependent on business from China, and U.S. consumers are expected to pay higher prices for Chinese imports due to Trump’s levies.
Trump is locked in two critical showdowns with Chinese President Xi Jinping: Getting Beijing to cut off economic support for the Kim regime to push North Korea into giving up its nukes, and fighting back against Chinese trade violations and intellectual property theft.
Increasing trade tensions between the U.S. and China could complicate Trump’s efforts to push Xi away from supporting the Kim regime. Economic aid from China is critical to sustaining North Korea’s fragile economy, which faces severe sanctions from the U.S. and its allies. The Hill’s Jordan Fabian has more on that struggle here.
ON TAP TOMORROW
- U.S Chamber of Commerce hosts “AI Summit: Investing in Innovation and Tomorrow’s Workforce,” 9:30 a.m.
LEADING THE DAY
Mulvaney appoints top aide as consumer bureau acting No. 2: Acting Consumer Financial Protection Bureau (CFPB) Director Mick Mulvaney on Monday promoted a top aide to be the agency’s acting deputy chief.
The CFPB announced Monday that Mulvaney had appointed Brian Johnson to be the agency’s acting deputy director. Johnson had previously served as the CFPB’s principal policy director. He had been hired by Mulvaney last year to rein in and rebrand the controversial regulator.
Mulvaney said Johnson, the first person he hired to the bureau, has been an “indispensable advisor,” who “knows the Bureau like the back of his hand.”
“He approaches his role as a public servant with humility and unsurpassed dedication,” Mulvaney said in a statement. “His steady character, work ethic, and commitment to free markets and consumer choice make him exactly what our country needs at this agency.”
Johnson, once a top aide to Rep. Jeb Hensarling (R-Texas), steps into the role vacated Monday by Leandra English, the former CFPB deputy director, who had sued President Trump and Mulvaney for control of the bureau.
Mulvaney said in a statement that “I really cannot comment on Leandra English’s work at the Bureau, as I never actually met her.” I explain here.
Study: Paid family leave proposal would accelerate Social Security’s insolvency: A paid family leave proposal supported in concept by some Republicans would speed up the insolvency of Social Security trust funds by about six months, according to a study released Monday by the right-leaning American Action Forum (AAF).
“The proposal … would not work so well in practice because of Social Security’s troubled financial outlook,” AAF’s Ben Gitis and Gordon Gray wrote in the report.
The report comes ahead of a Senate hearing Wednesday on paid family leave, in which Sens. Joni Ernst (R-Iowa) and Kirsten Gillibrand (D-N.Y.) are slated to testify. Sen. Marco Rubio (R-Fla.) is also expected to release a bill on the issue.
Rubio and Ernst have expressed interest in a proposal from the Independent Women’s Forum (IWF) that would allow people to choose to get paid family leave through Social Security in exchange for deferring the collection of Social Security retirement benefits for a short time period to offset the cost. The Hill’s Naomi Jagoda has more here.
GOP lawmaker to offer bill to curtail Trump’s trade powers: Rep. Mike Gallagher (R-Wis.) is slated to introduce a bill on Monday that would limit President Trump’s authority to impose certain tariffs.
Under the legislation, the president would be required to obtain congressional approval before levying tariffs “in the interest of national security.”
Lawmakers would be provided with a 60-day window to review the president’s proposals. Legislation aimed at approving the requests would also have the ability to be fast-tracked through both chambers, ensuring an opportunity for debate and passage.
The measure — which already has a companion bill introduced by Republican Sens. Bob Corker (Tenn.) and Pat Toomey (Pa.) that has garnered bipartisan support — would be retroactive for the past two years and apply to all tariffs that fall under Section 232 of the Trade Expansion Act of 1962. The Hill’s Juliegrace Brufke tells us what to expect here.
France calls for ‘united and strong’ European response to US tariffs: France’s finance minister called on Sunday for a “united” response to U.S. tariffs from Europe, taking a decidedly harder line on the duties than German Chancellor Angela Merkel.
“If tomorrow there is an increase in tariffs, like in the car industry, our reaction should be united and strong to show that Europe is a united and sovereign power,” Bruno Le Maire said, according to Reuters.
His comments came days after Merkel warned against the prospect of a full-blown trade war between Germany and the U.S. and insisted that her country make “every effort to try to defuse this conflict.”
MARKET CHECK: From Bloomberg: “U.S. equities rose to the highest in almost a month as investors set aside concern about escalating trade tensions and rising political tension abroad to focus on the coming earnings season. The dollar gained versus major peers and Treasuries retreated.”
GOOD TO KNOW
- President Trump on Monday attacked Pfizer and other pharmaceutical companies for raising prices in recent weeks, despite his promise that costs to consumers would be declining.
- Many U.S. states have been slow to improve their finances nine years into the economic expansion, raising the risk they won’t be prepared when another downturn hits, according to The Wall Street Journal.
- Politico looks at the major makeover of U.S. megabank Washington lobbying efforts.
- FINRA is encouraging investment firms to notify the group if they’re involved in any trading of or investment in cryptocurrencies.
- Federal Reserve Chair Jerome Powell visits most frequently with lawmakers, White House officials, according to Reuters.
- China will reimburse the buyer for the cost of the 25 percent tariff on soybean imports from the U.S. if the cargoes are for state reserves, according to Bloomberg.
ODDS AND ENDS
- Citigroup is hoping to win a greater share of the retail banking market with a new digital-focused presence, according to Reuters.
Join us Wednesday, July 11, for “Latino Entrepreneurship & The American Dream,” featuring Reps. Carlos Curbelo (R-Fla.), Jenniffer González-Colón (R-P.R.), and Adriano Espaillat (D-N.Y.). Topics of discussion include what leaders in government and industry are doing to support Latino entrepreneurs and how barriers related to lending, training, and growth can be eliminated We will also explore the role mentoring can play in empowering Hispanic small business owners. RSVP Here.