On The Money: Trump defends tariff moves as allies strike back | China says it's ready for trade war | Maxine Waters is done with 'nice guy' politics | ZTE allowed to resume some operations

On The Money: Trump defends tariff moves as allies strike back | China says it's ready for trade war | Maxine Waters is done with 'nice guy' politics | ZTE allowed to resume some operations
© Getty Images

Happy Tuesday and welcome back to On The Money, where will be returning to your inbox on Thursday after taking tomorrow off to celebrate America's birthday. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter @SylvanLane, @VickofTheHill, @NJagoda and @NivElis.

 

THE BIG DEAL--Trump defends tariff moves as allies strike back: President TrumpDonald John TrumpHannity urges Trump not to fire 'anybody' after Rosenstein report Ben Carson appears to tie allegation against Kavanaugh to socialist plot Five takeaways from Cruz, O'Rourke's fiery first debate MORE is defending his plans to levy billions of tariffs on the nation's closest trading partners even as allies retaliate one by one.

Trump and his top administration officials remain steadfast on his protectionist trade policies, arguing that growing trade deficits prove the United States has been losing on the global stage for years.

The United States has levied hefty steel and aluminum tariffs for national security reasons on all but a handful of countries, hit China with duties over the alleged theft of intellectual property and is contemplating another round of taxes on imported cars.

The tariffs have rocked the relationships with close allies such as Canada, Mexico and the European Union, all of which have retaliated, pushing the world's top economies to the brink of a global trade war. The Hill's Vicki Needham tells us what's at stake here.

 

Reactions:

  • "It's going to all work out." -- President Trump
  • "Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost American jobs and economic growth." -- Thomas Donohue, president and CEO of the U.S. Chamber of Commerce
  • "It's not positive. We have to work something out." -- Dutch Prime Minister Mark Rutte

 

What comes next: China intends to hit $45 billion in U.S. exports after Trump said he would levy tariffs on $50 billion in Chinese goods. The first round of 25 percent tariffs on $29.6 billion of U.S. exports is expected to start on Friday. Beijing will implement the remaining $15.4 billion at a later time, after gauging U.S. reaction.

Trump has since countered with another round of tit-for-tat tariffs on $200 billion in Chinese goods. As of this week, approximately $75 billion worth of U.S. exports will be subject to retaliatory tariffs.

 

ON TAP TOMORROW

  • Happy Independence Day!

 

LEADING THE DAY

Maxine WatersMaxine Moore WatersTrump boosts Heller, hammers 'Wacky Jacky' opponent in Nevada On The Money: Midterms to shake up House finance panel | Chamber chief says US not in trade war | Mulvaney moving CFPB unit out of DC | Conservatives frustrated over big spending bills The Hill's Morning Report — Sponsored by United Against Nuclear Iran — The Hill interviews President Trump MORE is done with 'nice guy politics': From the perspective of some House Democrats, Rep. Maxine Waters (D-Calif.) has the right message. She's just not always the best messenger.

The Los Angeles lawmaker's early calls for President Trump's impeachment and viral showdowns with administration officials have endeared Waters to the party's young, liberal base. And those stances have also garnered the respect of many House Democrats, who admire how Waters, 79, sticks to her political convictions.

"She is up-to-date, she is smart, she is authentic and she is not scared to express herself," Rep. Gwen MooreGwen Sophia MooreIronworker and star of viral video wins Dem primary for Paul Ryan's seat On The Money: Trump defends tariff moves as allies strike back | China says it's ready for trade war | Maxine Waters is done with 'nice guy' politics | ZTE allowed to resume some operations Maxine Waters is done with 'nice guy politics' MORE (D-Wis.) told The Hill, adding that her constituents in Milwaukee often ask her if she knows Waters.

Yet her most recent remarks -- encouraging public confrontation with Cabinet members -- rankled some of those colleagues and raised concerns about how Waters would handle increased authority if Democrats regain control of the House in November. I explain it all here.

 

 

ZTE BACK IN BUSINESS (FOR NOW):

The Trump administration will allow Chinese phone maker ZTE to temporarily resume some of its operations as the U.S. considers undoing its seven-year ban on the manufacturer doing business with American companies.

The reprieve: The new authorization from the Commerce Department will go from July 2 to Aug. 1, according to a document obtained by Bloomberg. The company told the outlet that it will be in compliance with U.S. demands by the end of this period.

The background: President Trump has said he is working to ease the penalties on ZTE that the Commerce Department imposed on the company for violating sanctions with Iran. His move has sparked heavy backlash from lawmakers on both sides of the aisle. Lawmakers last month passed the National Defense Authorization Act (NDAA) with amendments including provisions aimed at reversing Trump's attempts to ease the penalties. They see the company as a national security threat because of its ties to the Chinese government.

Our Ali Breland has the latest in the fight.

 

MARKET CHECK: From CNBC: "Stocks fell on Tuesday as tech shares dropped sharply, while lingering concerns over a trade dispute between the U.S. and other major economies rattled investors.

"The Dow Jones Industrial Average declined 132.36 points to close at 24,174.82, with Apple falling more than 1.5 percent. The S&P 500 fell 0.5 percent to 2,713.22, with tech sliding 1.4 percent. The Nasdaq composite pulled back 0.9 percent to 7,502.67 as Micron and Facebook dropped 5.5 percent and 2.4 percent. The indexes also snapped their three-day winning streaks."

 

GOOD TO KNOW

 

ODDS AND ENDS

  • A new New 'Family Feud'-style game show wants to pay off your student loans.
  • David Kostin, chief U.S. equity strategist at Goldman Sachs, told Bloomberg News that 100 percent of the S&P 500's total return of nearly 3 percent in the first half is attributable to just 10 stocks.