On The Money: Trump touts 'big leap forward' with China | Questions mount about trade truce | Consumer bureau name change could cost firms $300M | GM chief to meet Ohio senators

Happy Monday 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--Trump touts 'big leap forward' with China after G-20 meeting: President TrumpDonald John TrumpProsecutors investigating Trump inaugural fund, pro-Trump super PAC for possible illegal foreign donations: NY Times George Conway: Why take Trump's word over prosecutors' if he 'lies about virtually everything' Federal judge says lawsuit over Trump travel ban waivers will proceed MORE on Monday touted "strong" relations with China in the wake of his Group of 20 summit meeting with Chinese President Xi Jinping, claiming in a series of tweets that only he and the Chinese leader could reach an agreement on trade and other matters.

"President Xi and I have a very strong and personal relationship," Trump wrote on Twitter. "He and I are the only two people that can bring about massive and very positive change, on trade and far beyond, between our two great Nations. A solution for North Korea is a great thing for China and ALL!"

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The president appeared to be celebrating his meeting with Xi on Saturday, where the two sides agreed to hold off on further tariff increases amid trade negotiations. The pact was seen as a step forward, but it's unclear what it truly entails. The Hill's Jordan Fabian explains here.

 

The agreement:

  • Trump said late Sunday night that China had agreed to reduce and remove tariffs on cars coming into China from the U.S, a pledge made by Beijing before. He did not say when the change would take place, or what the new level would be.
  • China earlier this year cut it tariffs for foreign automobiles to 15 percent, but leveled an additional 25 percent tariff on American cars over the summer in response to duties from the Trump administration, bringing the total to 40 percent.
  • The Chinese government hasn't confirmed the deal, and there have been mixed messages about the agreement from Trump's top aides.

 

The confusion:

  • Top White House economic adviser Larry Kudlow on Monday said he believes China agreed to lower tariffs on imported autos, but did not provide specifics.
  • Kudlow also said the 90-day reprieve from U.S. tariff increases on China will begin on Jan. 1, when the tariff rate on $250 billion worth of Chinese goods was set to jump from 10 percent to 25 percent, and not immediately.
  • The White House later issued a correction, updating Kudlow's remarks to reflect the Dec. 1 start point.

 

What comes next: Trade talks between the U.S. and China have gone hot and cold for months, but both nations are feeling the economic crunch to a greater degree. The Trump administration has made significant asks that would cause Beijing to fundamentally reshape it's economic development plan at a particularly vulnerable point for the Chinese economy. It will take a lot of good will and flexibility to strike a deal here.

 

NAFTA NO-MORE? President Trump said late Saturday that he plans to formally terminate the North American Free Trade Agreement (NAFTA) in an effort to pressure Congress to approve a new trade deal with Canada and Mexico.

"I will be formally terminating NAFTA shortly," Trump told reporters on Air Force One while returning from the Group of 20 summit in Argentina.

Trump and the leaders of Mexico and Canada on Friday signed a revised North American trade agreement that caps off a bitter trade dispute between the three nations. But the required congressional approval for the new pact is far from certain.

 

LEADING THE DAY

Exclusive: Consumer bureau name change could cost firms $300 million: Changing the name of the Consumer Financial Protection Bureau (CFPB) could cost the businesses it regulates more than $300 million, according to an internal agency analysis obtained by The Hill.

Banks, lenders and other financial services firms subject to CFPB supervision could be required to spend millions of dollars if the agency goes through with a rebranding proposal from ActingMatthew G WhitakerFox's Kilmeade suggests David Bossie, Matthew Whitaker for chief of staff Comey’s confession: dossier not verified before, or after, FISA warrant Flake stands firm on sending a ‘message to the White House’ on Mueller MORE Director Mick MulvaneyJohn (Mick) Michael MulvaneyOn The Money: House GOP struggles to get votes for B in wall funds | Fallout from Oval Office clash | Dems say shutdown would affect 800K workers | House passes 7 billion farm bill Conservative leader Meadows will not be White House chief of staff Consumer bureau morale plummeted under Mulvaney: report MORE.

explain why here.

 

The background:

  • The agency, established by the 2010 Dodd-Frank Wall Street reform law, has been known as the Consumer Financial Protection Bureau and CFPB since it opened in 2011.
  • Mulvaney, a Republican who's also the White House budget director, replaced Cordray. In April, he began referring to the agency as the Bureau of Consumer Financial Protection, shortened to Bureau or BCFP.
  • The CFPB in March released a new logo that referred to the agency as the Bureau of Consumer Financial Protection, and in June flipped the sign in its front lobby to reflect the name change.

 

The cost:

  • The agency's analysis found that firms would be forced to spend roughly $300 million total to update internal databases, regulatory filings and disclosure forms with the new name in order to comply with those rules.
  • The analysis estimated that the changes necessary to comply with the Fair Credit Reporting Act, the Electronic Fund Transfer Act and certain mortgage regulations would cost firms $100 million for each rule. The CFPB cited a 2010 cost-benefit analysis of agency name-changes in its internal report.
  • A name change would cost the agency between $9 million and $19 million, by updating internal materials and its website, according to the analysis. The CFPB is funded through the Federal Reserve system, with fees paid by U.S. banks.

The rationale:

  • Mulvaney has said the agency should be known as the BCFP, reflecting the name codified in the Dodd-Frank legislation that became law.
  • While Dodd-Frank formally established the agency as the Bureau of Consumer Financial Protection, the law also makes several references to the Consumer Financial Protection Bureau.

 

GM fallout--Ohio senators to meet with company chief: Sens. Sherrod BrownSherrod Campbell BrownDem senator: Trump 'seems more rattled than usual' GOP rep: If Mueller had found collusion, ‘investigation would have wrapped up very quickly’ O’Rourke is fireball, but not all Dems are sold MORE (D) and Rob PortmanRobert (Rob) Jones PortmanDrug company to offer cheaper opioid overdose treatment after hiking price 600 percent The Hill's Morning Report — Presented by T-Mobile — Congress to act soon to avoid shutdown On The Money: Trump touts China actions day after stock slide | China 'confident' on new trade deal | GM chief meets lawmakers to calm anger over cuts | Huawei CFO arrested MORE (R) from Ohio are scheduled to meet with General Motors Chief Executive Officer Mary Barra on Wednesday, after the automaker announced last week that it would halt production at a plant in the Buckeye State.

The senators announced the planned meeting on Monday and said it would take place in Portman's office.

GM said that it is planning to lay off 15 percent of its salaried workers and would not assign products in 2019 to five plants in North America, including a plant in Lordstown, Ohio, in the northeast part of the state.

 

GOOD TO KNOW

  • White House chief economic adviser Larry Kudlow said on Monday the Trump administration will seek to end subsidies for electric cars and renewable energy sources, according to reports.
  • Amazon on Monday briefly topped the list of Wall Street's most valuable companies, over Apple and Microsoft as the three battle for the top market value.

 

ODDS AND ENDS