Washington Edition
Details still to come on tariffs
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This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, US economy editor Laura Curtis looks at the downstream effects of the president’s tariff rollout. Sign up here and follow us at @bpolitics. Email our editors here.

Fine Print

If you’re feeling a bit confused about which countries and what goods will be hit by President Donald Trump’s tariffs, consider the importers that will be on the hook for the bill.

With just hours to go before Trump’s promised Friday deadline for a raft of new country-specific tariff rates, customs brokers and trade lawyers across the country are still waiting to see the last-minute fine print on what seems like an impossible number of tariff changes.

White House Press Secretary Karoline Leavitt told reporters that Trump would sign an executive order on the new country-specific rates “at some point this afternoon or later this evening.”

It’s still unclear how many orders Trump will need to sign to enact the new duties.

Numerous details needed to keep goods flowing and the paper trail compliant remain up in the air: What will dozens of still-unspecified levies be and will they apply to merchandise already in transit? Will Trump’s recent bilateral “deals” with trading partners like the UK and Japan stick? If so, how will they be implemented?

“If there is no formal notification before Aug. 1, does that mean the current rates are being assessed? The April 2 tariff rates? We don’t know,” said Cindy Allen, chief executive officer of Trade Force Multiplier LLC, an international trade and customs consulting firm.

Official directives are needed for the US to collect revenue from the new country-specific tariff rates Trump announced over the past month in a series of letters and social media posts.

Once a decree comes, Customs and Border Protection can reprogram its software platform known as ACE — short for Automated Commercial Environment. That software went from just a few lines in Trump’s first term to getting retooled overnight to handle dozens of tariff codes. If the only update is to various countries’ tariff rate, it could be an easy change.

But what Trump has proposed is far more complex than that — a patchwork consisting of new levies for nations and specific ones for certain goods like autos, steel and copper.

CBP has had to work out the details on the fly before.

“We’re correcting customs every day on scenarios where they mistakenly requesting additional duty,” said William Jansen, head of customs brokerage at SEKO Logistics. “And I can’t blame them. Their job has gotten more complicated too.”   Laura Curtis 

Key Reading:

Don’t Miss

Trump sent letters to 17 of the world’s largest pharmaceutical companies insisting they slash their US prices on new drugs to the lowest amount paid by certain other countries.

Trump is bringing in bank leaders to meet with him one by one at the White House, seeking their pitches on monetizing mortgage giants Fannie Mae and Freddie Mac.

The Federal Reserve’s preferred inflation measure increased in June at one of the fastest paces this year while consumer spending barely rose, underscoring the forces dividing policymakers over interest rates.

The president resumed his criticism of Fed Chair Jerome Powell after the central bank declined to cut interest rates, ending a short-lived détente.

The White House views a payment of $500 million by Harvard University as a floor in negotiations for a settlement, and the cost of a deal could climb far higher if the school doesn’t submit to government oversight.

The gaming industry’s push to reverse a provision in Trump’s tax law requiring gamblers to pay taxes on some of their losses is gaining bipartisan momentum in Congress. 

The White House intends to begin construction in September on a new ballroom estimated to cost $200 million, following through on Trump’s plans for a larger space to host formal events.

A rendering of the new ballroom to be added to the White House East Wing. Source: White House

A single air traffic controller was overseeing both planes and helicopters in the crowded airspace above Ronald Reagan Washington National Airport during the midair crash in January that killed 67 people.

Eric Trump’s stake in a Bitcoin mining venture could be worth $367 million when it goes public in coming weeks as his father, the president, issues recommendations to encourage the use of digital assets

Massachusetts Governor Maura Healey is proposing to spend $400 million to offset some of the Trump administration’s cuts to research funding at Boston’s prestigious hospitals and schools like Harvard.

A notorious Russian hacking group is impersonating a prominent cybersecurity firm and using the country’s internet providers to spy on foreign embassies, according to a report from Microsoft.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., hosts Joe Mathieu and Kailey Leinz interviewed Ron Kirk, who was US trade representative in the Obama administration, about the president’s trade deals with tomorrow’s deadline looming.

On the program at 5 p.m., they talk with Republican Senator Ted Cruz and Democratic Representative Suzan DelBene about issues in front of Congress and the move in Texas to redraw the state’s congressional map.

On the Big Take podcast, Bloomberg’s Emily Mason joins host Sarah Holder to break down what stablecoins are, how they work and what their wider adoption could mean for the crypto industry, banks and consumers. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

The ability to buy and refinance homes when mortgage rates were at historic lows from 2019 to 2022 played a large role in helping millions of US households gain equity. Data from ATTOM's US Home Equity and Underwater Report released today show that the share of equity rich homes rose by more than 20 percentage points from 2019 to last quarter. This equates to an additional 15.8 million more households — or a total of 30.3 million homeowners up from less than 15 million at the end of 2019 — having at least 50 percent equity in their homes. At the same time more property owners were able to pay down their mortgage balances enough to remove themselves from the seriously underwater cohort. That group is identified as owing at least 25% more than the estimated market value of the property. This shift will shield homeowners and the economy should valuations fall. — Alex Tanzi

What’s Next

The jobs report for July will be released tomorrow.

The University of Michigan’s final read of consumer sentiment in July also will be reported tomorrow.

Factory orders in the US for June will be reported on Monday.

The nation’s trade balance for June will be released on Tuesday.

Data on consumer borrowing in June will be reported next Thursday.

Seen Elsewhere

  • The government is paying more than 154,000 employees across dozens of agencies not to work as a result of a Trump administration program to reduce the federal workforce, the Washington Post reports.
  • With diversity, equity and inclusion efforts coming under sustained attack, a poll finds that fewer Americans think Black people face discrimination than did in 2021, according to the Associated Press.
  • Autonomous trucks are making nighttime hauls across Texas using a startup's Lidar laser system, marking a milestone toward the expansion of driverless rigs on US highways, the Wall Street Journal reports.

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