Tomato Tariff
Beginning Monday, all tomatoes imported from Mexico will be subject to a 17% tariff.
That’s going to be a big deal when summer ends and buying fresh from local farms is no longer an option. More than 90% of US tomato imports come from Mexico, according to Agriculture Department data.
The tariffs will kick in because of the end of an agreement put in place after complaints that the imports were being sold at uncompetitively low prices. That’s “a major win for Florida farmers,” said Sen. Rick Scott (R-Fla.).
The nation’s largest tomato importer, NatureSweet, said it would have to raise consumer prices by as much as 10% after the levy kicks in.
Rep. Vicente Gonzalez (D-Texas) and the Texas International Produce Association plan a press conference today where they’ll urge a temporary extension of the agreement and more negotiations. — Skye Witley
On another trade front, Trump told NBC News he’s considering a flat tariff of 15-to-20% on all trading partners, up from the current baseline tax of 10%. That would be on top of steep new rates for Brazil and countries announced earlier this week.
Trump also is threatening our neighbor to the north with a tariff of 35% on some Canadian products starting Aug. 1. That’s an increase from the current 25% levy on imports that aren’t shipped under the terms of the US-Mexico-Canada Agreement, though most of Canada’s exports to the US do fall under the rules of USMCA.
The announcement posted to Truth Social says that new rate can be erased if Canada decides to build or manufacture products within the US.
And Treasury Secretary Scott Bessent will be in Japan next week for the 2025 World Expo in Osaka. That visit follows a formal notice that tariffs on all Japanese imports will be set at 25%, effective Aug. 1.
Japan was initially seen as a promising partner for a quick trade deal, but the negotiations hit a roadblock over car tariffs. The auto sector is a major employer in Japan and accounts for more than 80% of the trade imbalance with the US.
Also Read:
- Trump’s Brazil Tariffs Risk Upending Trade From Coffee to Beef
- Vietnam Surprised by Trump Tariff Announcement, Seeks Lower Rate
- Trump Tariff Bulldozer Tests Strategy of De-Escalation
Texas Bound
President Donald Trump heads today to the Texas Hill Country, where he’s scheduled to participate in a roundtable with first responders and local officials.
The flash flooding hit exactly a week ago, causing more than 100 deaths and leading to scrutiny of agencies that play a role in warning of weather threats and assisting afterward.
Ellen M. Gilmer describes how the flood amplified congressional interest in the downsizing of the Federal Emergency Management Agency: Watch the Video.
Russia Sanctions
With senators especially eager to vote on sanctions against Russia, the only question has been whether Trump is ready for them to act. In a telephone interview with NBC News, he sent a signal to Moscow that the time is near. “They’re going to pass a very major and very biting sanctions bill, but it’s up to the president as to whether or not he wants to exercise it,” he said.
And without offering details, Trump said “I think I’ll have a major statement to make on Russia on Monday.” Read More
Undoing Long-Done Decisions
Next week is clawback crunch time on Capitol Hill. Congress has until next Friday, July 18, to rescind the already appropriated spending that Trump wants halted.
Some Senate Republicans have opposed the $9.4 billion package (H.R. 4) because of its proposed cuts to public broadcasting and to a global initiative to combat HIV and AIDS.
“It’s a fairly open process, subject to amendment, so we’ll see where it goes,” Senate Majority Leader John Thune told reporters.
Work also will continue on the regular fiscal 2026 spending bills, with the House Appropriations Committee scheduled to mark up the Transportation-HUD bill on Thursday and subcommittee consideration of the energy-water spending bill planned for Monday.
A Senate appropriations markup yesterday showed how those bills can test the legislative branch. Jack Fitzpatrick reports that after committee members amended a spending bill to block a Trump administration proposal to move the FBI’s headquarters, the vote to advance the legislation was stalled. Read More
For more on the challenge lawmakers are looking at, subscribers can read BGOV’s Congress Tracker.
Ready for Crypto Week
The House is set to vote next week on crypto-industry backed bills designed to establish rules of the road for digital assets.
Backers say the bills will fulfill a Trump campaign promise to make this the “crypto capital” with a light-touch approach to regulation. Crypto companies have said current law isn’t clear enough, and uncertainty is driving activity away from the US.
One of the bills (S. 1582) would establish rules for stablecoins, which are designed to keep a stable value equal to traditional currencies such as the US dollar. Since the Senate has already passed it, the House has a chance to clear it for the president’s signature.
Another bill would establish rules for a broader range of cryptocurrencies, including popular tokens such as Bitcoin (H.R. 3633) and allow certain tokens and platforms to avoid regulation by the Securities and Exchange Commission, which cracked down on the industry during the Biden administration.
And a third part of the crypto package (H.R. 1919) would bar the Federal Reserve from testing or issuing a central bank digital currency. Unlike the other two bills, it didn’t receive yes votes from any Democrats in committee.
Opponents say the bills don’t do enough to protect consumers from crypto fraud, and do nothing to prevent Trump from benefiting through his family’s ventures, including the recently launched USD1 stablecoin.
Bipartisan support has grown as the crypto industry ramped up its Capitol Hill lobbying efforts and spent record sums backing candidates in 2024 elections. It has been years since the collapse of FTX and other major crypto platforms, and Bitcoin reached a new record Thursday, over $112,000 . — Karl Evers-Hillstrom
Read More: BGOV Bill Analysis: S. 1582, Stablecoin Regulations
Arizona Primary
Three very different Democrats have a shot at victory in next week’s special House primary in Arizona.
Adelita Grijalva, a former county supervisor, is promising to continue the progressive legacy of her late father Raúl Grijalva (D), a longtime Congressional Progressive Caucus chair who died in March. Her supporters include Sen. Mark Kelly and ex-Rep. Gabrielle Giffords.
Grijalva, 54, is being pressed in Tuesday’s primary by Deja Foxx, a 25-year-old activist with a large social media following, and Daniel Hernandez, a 35-year-old former state legislator who was Giffords’ intern in 2011 when she was shot and severely wounded.
Arizona’s 7th District is a Hispanic-majority area that encompasses part of Tucson and most of Arizona’s border with Mexico. The Democratic nominee will be a prohibitive favorite to win the Sept. 23 special general election. — Greg Giroux
Eye on the Economy
The Federal Reserve’s next chance to change interest rates is about two weeks away, so there’ll be extra interest in what next week’s numbers show about the direction of the economy.
On Tuesday, the Bureau of Labor Statistics updates the consumer price index, a data point that will show whether Americans paid more in June for their living expenses and big purchases.
And on Friday, the University of Michigan will be out with its preliminary survey of consumer sentiment, a gauge that tracks whether people feel confident enough about their own financial well-being to consider the purchases that keep the economy humming.
Before You Go
China Prelude: After sitting down this morning with China’s foreign minister, Secretary of State Marco Rubio said a summit between Trump and Chinese leader Xi Jinping is likely. “There’s a strong desire on both sides to do it,” Rubio told reporters. “I think the odds are high.” He added that the two countries will find a “mutually acceptable date.” Read More
IRS Uncertainty: While some agencies have pulled back from massive layoffs, IRS workers are still in limbo over their future even though the Supreme Court has paused the last remaining injunction blocking 19 federal agencies from cutting workers, Erin Slowey explains. Read More
Law-Writer’s Remorse: Senators are trying to use the fiscal 2026 agriculture spending bill to address the unforeseen consequence of their decision to legalize hemp. “My 2018 hemp bill sought to create an agricultural hemp industry, not open the door to the sale of unregulated, intoxicating, lab-made hemp-derived substances with no safety framework,” said Sen. Mitch McConnell (R-Ky.). Read More
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