On The Money — Sponsored by Prudential — Trump walks back criticism of UK Brexit strategy | McConnell worries US in 'early stages' of trade war | US trade deficit with China hits new record

On The Money — Sponsored by Prudential — Trump walks back criticism of UK Brexit strategy | McConnell worries US in 'early stages' of trade war | US trade deficit with China hits new record
© Getty Images

Happy Friday and welcome back to On The Money, where we're gently floating into the weekend. 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 backtracks on May criticism after bombshell interview: President TrumpDonald John TrumpHouse Republican threatens to push for Rosenstein impeachment unless he testifies Judge suggests Trump’s tweet about Stormy Daniels was ‘hyperbole’ not defamation Rosenstein faces Trump showdown MORE on Friday said he has no problem with however the United Kingdom decides to leave the European Union, backing away from his explosive criticism of Prime Minister Theresa May

"Whatever you're going to do is OK with us," Trump told May during a joint press conference at the conclusion of his visit to the U.K. 

Trump said his only priority is getting a Brexit agreement that will allow the U.S. and the U.K. to hammer out a bilateral trade agreement after Britain leaves the EU next year.

"Just make sure we can trade together. That's all that matters," the president said.

Trump spent much of the press conference heaping praise on May, seemingly in an effort to paper over tensions between the two leaders. The Hill's Jordain Fabian has more from the wild press conference here

 

 

 

 

LEADING THE DAY

McConnell: We may 'be in the early stages' of a trade war: Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellFord's lawyer: Hearing doesn't appear to be designed for 'fair', 'respectful' treatment GOP opens door to holding Kavanaugh committee vote this week Press: Judge Kavanaugh must withdraw MORE (R-Ky.) said on Friday that the country might be in the beginning of a trade war and urged President Trump to reverse course on his recent tariffs.

"As you all know, I've said before, I'm concerned about getting into a trade war and it seems like ... we may actually be in the early stages of it. Nobody wins a trade war, and so it would be good if it ended soon," McConnell said during a press conference in Kentucky on Friday. 

Asked about the impacts on his own state, McConnell noted that reciprocal tariffs from U.S. trade partners are targeting both bourbon and the production of Toyota vehicles. 

"Yeah, as I've said repeatedly in the last few weeks as this has unfolded, this would not be good for the commonwealth," the Senate GOP leader told reporters. The Hill's Jordain Carney has more here.

 

Despite Trump efforts, US trade deficit with China hits record: Reuters: The U.S. trade deficit with China hit a record high in June, according to a Reuters analysis, despite President Trump's efforts to alter the trade relationship between the world's two largest economies.

Chinese data released Friday showed that the U.S. trade deficit with China hit $28.97 billion in June, an increase of $4.39 billion from May, according to Reuters.

In the first half of the year, Chinese exports to the U.S. increased 13.6 percent as compared to the same period in 2017, while imports from the U.S. only rose 11.8 percent.

The data comes as President Trump has ratcheted up a trade war with China and other close American trade partners, including Canada, Mexico and the EU. The Hill's Niv Elis breaks it down here.

 

ON TAP NEXT WEEK

Monday:

  • Brookings Institution hosts the 7th annual Municipal Finance Conference, 1:15 p.m.

 

Tuesday:

  • Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee on the Fed's semiannual monetary policy report, 10 a.m.
  • House Financial Services Committee: Hearing entitled "Examining Capital Regimes for Financial Institutions," 2 p.m.

 

Wednesday:

  • U.S. Chamber of Commerce hosts event on financial technology, 9 a.m.
  • Federal Reserve Chairman Jerome Powell testifies before the House Financial Services Committee on the Fed's semiannual monetary policy report, 10 a.m.
  • Senate Finance Committee: Hearing on trade and commerce at U.S. ports of entry, 10 a.m.
  • House Financial Services Committee: Hearing entitled "The Future of Money: Digital Currency," 2 p.m.
  • House Ways and Means Committee: Hearing on the effects of tariffs on U.S. agriculture and rural communities, 2 p.m.

 

Thursday:

  • U.S. Chamber of Commerce hosts event on retirement saving, 8 a.m.
  • House Intelligence Committee: Hearing entitled "China's Threat to American Government and Private Sector Research and Innovation Leadership," 9 a.m.
  • Senate Banking Committee: Confirmation hearing for Kathy Kraninger to be Director of the Consumer Financial Protection Bureau and Kimberly Reed to be President of the Export-Import Bank, 10 a.m.

 

NEXT WEEK'S NEWS, NOW

  • Fed Chairman Jerome Powell will testify before House and Senate committee next week. While the hearings are intended to be focused on the Fed's semiannual monetary policy report, Powell is almost certain to face questions about the economic impact of mounting trade tensions. Lawmakers will also press Powell on the Fed's plans for hiking interest rates and how it will respond to rising inflation, which will be covered in the report.
  • President Trump's nominees to lead the Export-Import Bank and Consumer Financial Protection Bureau (CFPB) will testify before the Senate Banking Committee on Friday. Ex-Im president nominee Kimberly Reed will likely receive strong bipartisan support as lawmakers look to bring power back to the export subsidizer. CFPB director nominee Kathy Kraninger will face a tougher time winning over Democrats concerned about the future of the bureau.

 

 

 

 

GOOD TO KNOW

 

ODDS AND ENDS