On The Money: Senate approves $854B spending bill | China imposes new tariffs on $60 billion in US goods | Ross downplays new tariffs: 'Nobody's going to actually notice'

On The Money: Senate approves $854B spending bill | China imposes new tariffs on $60 billion in US goods | Ross downplays new tariffs: 'Nobody's going to actually notice'
© Greg Nash

Happy Tuesday and welcome back to On The Money. 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--Senate approves $854B spending bill: The Senate is racing to avoid the third government shutdown of the year ahead of a looming end-of-the-month deadline.

Senators on Tuesday voted 93-7 to pass a sweeping $854 billion spending bill that includes funding for the Departments of Defense, Health and Human Services (HHS), Labor and Education, which make up the lion's share of total government spending.

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Passage of the sweeping package of defense and domestic spending marks a significant victory for Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellCornyn opens door to including criminal justice bill in government funding measure The Hill's Morning Report — Trump shakes up staff with eye on 2020, Mueller probe Judd Gregg: The government goes geriatric MORE (R-Ky.) who has dedicated weeks of floor time to government funding and avoiding another catch-all omnibus bill less than two months before the midterm election, where control of Congress hangs in the balance. The Hill's Jordain Carney and Niv Elis tell us more here about the road ahead.

Big bucks: Despite containing only two appropriations bills, the package represents roughly two-thirds of Congress's 2019 spending.

Moving (relatively) quickly: It's the first time the Senate has approved funding for Labor, HHS or Education outside an omnibus bill since 2007, though even then the package was not completed on time. Why? The bills normally get bogged down by fights over partisan riders, but Senate negotiators agreed early on to avoid attaching them to their legislation.

 

LEADING THE DAY

China imposes new tariffs on $60 billion of US goods: China's Commerce Ministry said Tuesday that it is implementing new tariffs on $60 billion of U.S. goods starting Sept. 24, according to Reuters.

Trump announced Monday that the administration would impose 10 percent tariffs on more than 6,000 Chinese imports beginning on Sept. 24 and increase the tax to 25 percent at the end of the year.

The tariffs would target a broad array of imports, including fish such as salmon and halibut, vegetables, nuts, grains, orange juice, and metals including titanium and uranium.

Trump has also threatened an additional round of tariffs on $267 billion of Chinese goods if Beijing responded to the most recent U.S. round announced on Monday. Trump's tariffs now cover the entirety of China's exports to the U.S.

 

Commerce Secretary Wilbur RossWilbur Louis RossCanada arrests Huawei CFO facing US extradition for allegedly violating Iran sanctions: report Stocks slide after Trump warns China: 'I am a Tariff Man' George H.W. Bush remembered at Kennedy Center Honors MORE tried to downplay the impact of the tariffs, arguing the levies represent but a "tiny, tiny fraction" of U.S. inflation.

"If you have a 10 percent tariff on another $200 billion, that's $20 billion a year," Ross said. "Because it's spread over thousands and thousands of products, nobody's going to actually notice it at the end of the day."

While Ross sought to temper growing concerns about the economic impact of Trump's trade policy, his argument raises questions about the effectiveness of the tariffs.

Taxes on imports are intended to push consumers toward buying goods from domestic manufacturers by raising the cost of foreign competitor products. A lack of a meaningful price difference between U.S. and foreign goods could do little to bolster American manufacturers against Chinese rivals.

 

Scalise tells Canada: Make a deal on trade or be left behind: House Majority Whip Steve ScaliseStephen (Steve) Joseph ScaliseGOP sees fundraising hope in Dem megadonor presidential race Fractious GOP vows to unify in House minority The Hill's Morning Report — Trump shakes up staff with eye on 2020, Mueller probe MORE (R-La.) said Tuesday that Canada needs to come to a trade agreement with the U.S. or else get left out of the new trade deal with Mexico.

"Mexico negotiated in good faith and in a timely manner, and if Canada does not cooperate in the negotiations, Congress will have no choice but to consider options about how best to move forward and stand up for American workers," Scalise said in a statement Tuesday.

"While we would all like to see Canada remain part of this three-country coalition, there is not an unlimited amount of time for it to be part of this new agreement," Scalise explained.

The U.S. and Canada are attempting to strike a deal that would bring our northern neighbor into the North American Free Trade Agreement revamp that the Trump administration and Mexico have already agreed to sign.

The Trump administration warned Canada that it would leave Ottawa out of the deal if necessary. But the NAFTA rewrite is subject to congressional approval and lawmakers are wary of greenlighting a deal without Canada in it.

 

GOOD TO KNOW 

 

ODDS AND ENDS

  • Former Rep. Barney Frank (D-Mass.) said in an interview to be aired Wednesday that the financial regulation law bearing his name is unlikely to be loosened by Congress again.
  • The European Union is planning to drop its lawsuit against Ireland over back taxes from Apple after the country announced that it had collected $16.7 billion from the company.
  • Op-Ed: Ed Gerwin, senior fellow for trade and global opportunity at the Progressive Policy Institute, on why an "off-the-rails trade war shows how America loses under Trump."