Welcome to the Wall Street Week newsletter, bringing you stories of capitalism about things you need to know, but even more things you need to think about. I'm David Westin, and this week our special contributor, Larry Summers of Harvard, goes over the “One Big Beautiful Bill,” and we take a look inside what President Donald Trump's threatened tariffs could mean for the US wine industry.  If you're not yet a subscriber, sign up here for this newsletter.

‘Cutting off the Safety Net’

President Donald Trump claims his "One Big Beautiful Bill" is just what the US economy needs, and our special contributor, Larry Summers, agrees that "it's a big legislative accomplishment." But Summers says, "I don't think it's going to take the country in the right direction." He warns that "it's going to grow our budget deficits in the future very substantially," potentially leading to a "dynamic of higher deficits, larger interest rates, slower growth or worse deficits and around and around."

As much as Summers is concerned with the economic effects of the legislation, what bothers him most is its human cost.

‘Wine is just a pawn in a larger story’

Aug. 1 is the deadline for a series of tariffs that Trump says he will impose unilaterally if countries don't come to the right trade deals. One of the biggest is the possible 30% tariff he says he'll impose on imports from the European Union.

One US industry that would be hit particularly hard would be the wine business, which affects the economy far beyond the higher prices paid to foreign producers. Wine in the US is distributed through a "three-tier" system of importers, wholesalers, and retailers, which requires a separation of producers from distributors and retailers.

The particular nature of wine, and the preferences of those who consume it, means that pricing imported wines out of the market will not lead to easy substitutes.

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