It’s Tariff Day
It’s already been a busy day on the tariff front. President Donald Trump’s tariffs on steel and aluminum took effect one minute past midnight, and Europe retaliated, announcing its own duties on more than $28 billion worth of American goods.
In a new phase of a global trade war that’s been adding to recession worries, the EU will target US steel and aluminum products as well as textiles, agricultural products and home appliances.
“We deeply regret this measure,” European Commission President Ursula von der Leyen said in a statement. “Tariffs are taxes. They are bad for business, and even worse for consumers.”
Major Asian producers including South Korea, Taiwan, Japan and Australia held off on retaliating.
For the EU, the fight is picking up where Trump left off in his first administration. The US imposed steel and aluminum exports with duties, the 27-nation bloc retaliated against Harley-Davidson motorcycles, Levi jeans, and other strategically picked imports, and a truce was reached in 2021.
All of that follows a whiplash of a day in which one Canadian province announced its own retaliation, Trump threatened to double tariffs on Canadian steel and aluminum to 50%, and then both sides pulled back. In between, stock prices fell and then improved, continuing a three-week stretch of volatility.
NEXT STEP: Adoption of the EU tariffs is due in mid-April. Read More
Shamrocks and Worries
The first European leader to visit the White House since Donald Trump’s uncharming treatment of Ukrainian President Volodymyr Zelenskiy will be carrying greenery.
As has become traditional around St. Patrick’s Day, Taoiseach (Irish Prime Minister) Micheál Martin meets with Trump today. As pleasant as it sounds to see an Irishman gifting shamrocks, there’s potential for tension.
American tech and pharmaceutical companies are big employers in Ireland. The Irish news service RTÉ reported Martin intends to talk about his nation’s economic relationship with the US being a two-way street.
If the two men hit it off, it’ll be a smoother day all around, since after the bilateral Oval Office meeting, Martin and Trump are both going to a Friends of Ireland Luncheon in the Capitol and attending a reception later back at the White House.
Eye on the Economy
If you like to scramble your own eggs, you already understand the connection between bird flu-provoked flock destruction and high grocery prices. This morning we’ll find out how much those and other costs are driving inflation.
A Bloomberg survey of economists forecasts the Consumer Price Index to go up by 0.3% after a 0.5% gain at the start of the year — rising by the most since August 2023.
The CPI is a key part of the data the Federal Reserve scrutinizes when deciding whether to tweak interest rates.
Another reason to pay attention — if inflation forces Americans to spend more to buy basics like food, they have less left over to buy other things, and that has an impact on the companies that make the cars they put off replacing, the planes they don’t book travel on, and other products they decide not to buy.
Two big airlines slashed their financial forecasts, and former Treasury Secretary Larry Summers said on Bloomberg Television there’s almost a 50-50 likelihood of the US tipping into a recession this year.. Read More
Jamming the Senate
The House floor will be dark today, and the big guessing game on the Senate side will be how the minority party responds to legislation that would avoid a government shutdown while imposing changes Democrats oppose.
Since the measure doesn’t have Sen. Rand Paul’s (R-Ky.) support, enactment depends on at least eight Democrats voting “yes.”
We have a lot more on the state of play in today’s BGOV Budget Brief, and subscribers can check out the Senate schedule in Congress Tracker.
Out of Town
And House Democrats are hearing from some of their party’s rising stars at their policy retreat in Maryland. Maeve Sheehey sets the scene: House Democrats’ ‘United’ Retreat Collides With Party Fissures
Beige, Meet Magically Delicious
The CEO of a company that produces food coloring recently said his company has seen a significant acceleration of manufacturers looking to replace artificial colors with natural ones. Those customers may end up being ahead of the curve.
Bloomberg viewed an email sent by the Consumer Brands Association to its members describing a meeting in which Health and Human Services Secretary Robert F. Kennedy Jr. called on top executives from Kraft Heinz, General Mills and other food companies to remove artificial dyes before the end of his term.
Health advocates have said for years that synthetic colors add no taste or nutritional value but make unhealthy foods more visually appealing. There are also concerns the dyes may be carcinogenic or trigger hyperactivity in some children.
The memo sent by CBA Chief Executive Officer Melissa Hockstad said Kennedy also “made clear his intention to take action unless the industry is willing to be proactive with solutions.” Read More
Before You Go
The Transportation Department plans to release more details today of its plan for continuing helicopter restrictions on the airspace near Reagan Natonal Airport: NTSB Calls for Permanent Helicopter Ban on Route Near DCA
Oma Seddiq reports on a bipartisan effort to bar technology companies from selling rather than giving law enforcement data related to child exploitation: Tech Platforms’ Data Fees Targeted in New Child Safety Measure
The Education Department was due to get notices yesterday of layoffs and a directive to vacate Washington office buildings: Education Department to Cut Half of Workforce in DOGE Push
And we have a status report on an former House member who rolled the dice on a Senate race: Trump Antagonist Katie Porter Joins Race for California Governor
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