Happy Wednesday and welcome back to On The Money, which is still a little too long to fit on a postcard. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.
THE BIG DEAL--Ross skewered by Senate on tariffs: Senators hammered Commerce Secretary Wilbur RossWilbur Louis RossHolding defiant Trump witnesses to account, Jan. 6 committee carries out Congress's constitutional role Bannon's subpoena snub sets up big decision for Biden DOJ House panel, Commerce Department reach agreement on census documents MORE Wednesday over the Trump administration's tariffs during a contentious hearing on Capitol Hill.
Ross faced a wall of bipartisan criticism with senators questioning President TrumpDonald TrumpJury in Jussie Smollett trial begins deliberations Pence says he'll 'evaluate' any requests from Jan. 6 panel Biden's drug overdose strategy pushes treatment for some, prison for others MORE's trade actions and expressing fears over retaliation from trading partners.
On the hot seat, Ross defended the tariffs as necessary to protect American businesses.
"Actions taken by the president are necessary to revive America's essential steel and aluminum industries," Ross told lawmakers on the Senate Finance Committee. "Allowing imports to continue unchecked threatens to impair our national security."
The heated hearing comes as lawmakers in both parties have raised alarm over Trump's moves in recent weeks to implement a series of tariffs on China as well as U.S. allies, including Canada, Mexico and the European Union.
Those tariffs have rattled markets and sparked anger in the business community, which has warned they could lead to job losses, damage growth and undercut any gains from the GOP tax law.
The Hill's Vicki Needham takes us to the testy showdown here.
- "I just don't see how the damage posed on all of these sectors could possibly advance our national security." -- Sen. Orrin HatchOrrin Grant HatchLobbying world Congress, stop holding 'Dreamers' hostage Drug prices are declining amid inflation fears MORE (R-Utah), chairman of the Senate Finance Committee.
- "We're getting into a war that going to cost lots of billions of dollars." -- Sen. Johnny IsaksonJohnny IsaksonHerschel Walker calls off fundraiser with woman who had swastika in Twitter profile Georgia reporter says state will 'continue to be a premier battleground' Critical race theory becomes focus of midterms MORE (R-Ga.).
- "They are being held hostage in a bureaucratic twilight zone waiting to see if they're going to escape." -- Sen. Ron WydenRonald (Ron) Lee WydenPharma lobby eyes parliamentarian Hillicon Valley — Presented by Connected Commerce Council — Senate grills Instagram chief Major utilities agree to stop sharing data with ICE MORE (D-Ore.), ranking Democrat on the Senate Finance Committee, about small business seeking exemptions for imports.
- "I wish we would stop invoking national security, because that's not what this is about. This is about economic nationalism." -- Sen. Pat ToomeyPatrick (Pat) Joseph ToomeyBlack women look to build upon gains in coming elections Watch live: GOP senators present new infrastructure proposal Sasse rebuked by Nebraska Republican Party over impeachment vote MORE (R-Pa.).
- "What is it about the Canadian steel industry that is a national security threat?" -- Sen. Michael BennetMichael Farrand BennetDemocrats see Christmas goal slipping away Hickenlooper: Law preventing cannabis business banking 'a recipe for disaster' Senators call for Smithsonian Latino, women's museums to be built on National Mall MORE (D-Colo.)
- "This thing seems to be escalating out of control fairly quickly." -- Sen. John ThuneJohn Randolph ThuneOn The Money — McConnell searches for debt deal votes GOP working to lock down votes on McConnell debt deal Manchin quietly discusses Senate rules changes with Republicans MORE (R-S.D.)
More homework for Ross: Sen. Bob CorkerRobert (Bob) Phillips CorkerCheney set to be face of anti-Trump GOP How leaving Afghanistan cancels our post-9/11 use of force The unflappable Liz Cheney: Why Trump Republicans have struggled to crush her MORE (R-Tenn.) is pressing the Trump administration for details on the implementation of tariffs on steel and aluminum imports.
Corker, the chairman of the Senate Foreign Relations Committee, sent a letter on Wednesday to Ross asking for details on how the Commerce Department is deciding which countries will be exempted from the steep financial penalties, which he said were having "damaging" effects on U.S. businesses.
ON TAP TOMORROW
- Brookings Institution hosts an event on infrastructure jobs opportunity, 9 a.m.
- House Financial Service Committee: Securities and Exchange Commission Chairman Jay Clayton testifies during a hearing on SEC oversight, 10 a.m.
- House Education and the Workforce Committee: Hearing entitled ""Growth, Opportunity, and Change in the U.S. Labor Market and the American Workforce: A Review of Current Developments, Trends, and Statistics," 10 a.m.
- House Financial Services Committee: Markup of three investment and capital markets bills, 2 p.m.
LEADING THE DAY
EU levies tariffs on $3.2B on US goods over metals duties: The European Union on Friday will slap billions in additional tariffs on U.S. exports in reaction to President Trump's steel and aluminum tariffs.
The EU said on Wednesday that it will impose a 25 percent tariff on $3.2 billion in American goods ranging from Harley-Davidson motorcycles to jeans and bourbon, the European Commission in Brussels announced.
"We did not want to be in this position," EU Commissioner for Trade Cecilia Malmström said in a statement.
"However, the unilateral and unjustified decision of the U.S. to impose steel and aluminum tariffs on the EU means that we are left with no other choice," Malmström said.
Vicki Needham has more about the transatlantic trade tensions here.
Senate rejects Trump plan to claw back spending: The Senate on Wednesday narrowly rejected President Trump's plan to claw back roughly $15 billion in spending approved by Congress earlier this year.
In a 48-50 vote, senators failed to discharge the measure from committee. A majority vote was needed.
GOP Sens. Richard BurrRichard Mauze BurrTrump moves to boost Ted Budd in North Carolina Senate race Texas Democrat Rep. Eddie Bernice Johnson announces retirement at end of term On The Money — IRS chief calls for reinforcements MORE (N.C.) and Susan CollinsSusan Margaret CollinsThe Hill's Morning Report - Presented by Uber - Debt limit maneuvers; Biden warns Putin Senate confirms Biden's nominee to lead Customs and Border Protection Hillicon Valley — Presented by Connected Commerce Council — Incident reporting language left out of package MORE (Maine) joined 48 members of the Democratic caucus in voting against bringing up the bill.
The Hill's Jordain Carney tells us why here.
MARKET CHECK: Reuters: "The Nasdaq closed at a record on Wednesday, lifted by a climb in large-cap tech and consumer discretionary names, while the Dow and S&P 500 were hemmed in as concerns over an escalation in the U.S.-China trade skirmish simmered.
"The Dow Jones Industrial Average fell 42.41 points, or 0.17 percent, to 24,657.8, the S&P 500 gained 4.73 points, or 0.17 percent, to 2,767.32 and the Nasdaq Composite added 55.93 points, or 0.72 percent, to 7,781.52."
GOOD TO KNOW
- Senate Finance Committee ranking member Ron Wyden (D-Ore.) is calling for the panel to conduct a bipartisan investigation into the Donald J. Trump Foundation, after the New York attorney general filed a lawsuit last week seeking to dissolve the organization.
- Treasury Secretary Steven MnuchinSteven MnuchinSuspect in Khashoggi murder arrested The Hill's Morning Report - Presented by Facebook - Biden to tackle omicron risks with new travel rules Mnuchin and McConnell discuss debt limit during brief meeting MORE said Wednesday that the department next week will release a new tax-filing form the size of a postcard.
- President Trump's plans to hit China with $200 billion more in tariffs is roiling global markets, angering business groups and putting lawmakers on edge in an important election year.
- White House budget director Mick MulvaneyMick MulvaneyJan. 6 committee issues latest round of subpoenas for rally organizers The Hill's Morning Report - Presented by Alibaba - To vote or not? Pelosi faces infrastructure decision Jan. 6 panel subpoenas 11, including Pierson, other rally organizers MORE on Wednesday defended the Trump administration's controversial "zero tolerance" immigration policy that has led to the separation of thousands of migrant children from their parents.
- Several GOP lawmakers said they and President Donald Trump made progress Wednesday toward a compromise that would let Chinese telecommunications giant ZTE Corp. stay in business while addressing lawmakers' national security concerns, according to Bloomberg.
- New U.S. investment restrictions could restrict Chinese access to over 1,000 U.S. companies in technology and other sectors that the administration has deemed vital to U.S. national security, according to Politico.
- The world's most-powerful central bankers warned that escalating international trade tensions have started damaging confidence among companies, threatening the global economic expansion.
ODDS AND ENDS
- Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellOn The Money — McConnell searches for debt deal votes GOP working to lock down votes on McConnell debt deal The Hill's Morning Report - Presented by Uber - Debt limit maneuvers; Biden warns Putin MORE met today with Kathy Kraninger, who President Trump nominated to lead the CFPB, per his office. McConnell said in a statement that Kraninger is "well-suited to continue on the course [Mulvaney] has charted toward transparency, accountability, and effectiveness within proper limits."
- Op-Ed: Brian Knight, a senior research fellow and director of the Program on Financial Regulation at the Mercatus Center at George Mason University, writes for The Hill on whether banks that engage in political activism are really 'private'?
- A number of airlines on Wednesday asked federal officials not to use the carrier to transfer migrant children who have been separated from their families at the southern border.
- The publisher of National Enquirer has been subpoenaed for records related to its $150,000 payment to a former Playboy model for the right to her story that alleged she had an affair with President Trump.
Join us Tuesday, June 26 for “Mergers and Innovation: Measuring Performance and Patient Care,” featuring HHS Deputy Secretary Eric Hargan, Sen. Bill CassidyBill CassidyHillicon Valley — Presented by Connected Commerce Council — Incident reporting language left out of package Senators turn up the heat on Amazon, data brokers during hearing Sunday shows preview: New COVID-19 variant emerges; supply chain issues and inflation persist MORE (R-La.) and Rep. Gene GreenRaymond (Gene) Eugene GreenBottom line Texas New Members 2019 Two Democrats become first Texas Latinas to serve in Congress MORE (D-Texas). Topics of discussion include how the landscape of health care delivery in the United States is undergoing a dramatic shift, its implications for health care industry stakeholders and patients and also the role of Congress in ensuring all Americans have access to quality care. RSVP Here.