Overnight Finance

On The Money: Biden administration launches trade dispute against Canadian dairy industry | Warren urges Biden to replace Fed’s Quarles

Katherine Tai
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THE BIG DEAL: The Biden administration launched a trade dispute against Canada’s dairy industry on Tuesday, triggering for the first time the new U.S.-Mexico-Canada Agreement’s (USMCA) mechanism to review such complaints.

U.S. Trade Representative Katherine Tai said the administration has requested a dispute settlement panel to review Canadian measures the U.S. says limit the ability of American dairy exporters to sell products to consumers north of the border. The USMCA, which took effect in July, included language to expand access for U.S. dairy farmers and processors to Canada’s domestic dairy market 

“A top priority for the Biden-Harris Administration is fully enforcing the USMCA and ensuring that it benefits American workers,” Tai said in a statement. 

The U.S. dairy industry has long voiced concerns over what they say are obstacles to getting their products to Canadian consumers, with many complaints centering around tariff-rate quotas that allocate a segment of the dairy market solely for Canadian dairy processors.

Read more from Tal Axelrod here.

LEADING THE DAY: Sen. Elizabeth Warren (D-Mass.) on Tuesday told Federal Reserve Vice Chairman for Supervision Randal Quarles that she was recommending President Biden replace him when his term ends later this year. 

“Your term as chair is up in five months, and our financial system will be safer when you are gone,” she told Quarles during a testy exchange at a Senate Banking Committee hearing on the Federal Reserve’s regulation of the financial system. 

“I urge President Biden to fill your role with someone who will actually keep our financial system safe,” she said. 

Warren, who’s built a reputation as a tough questioner in public hearings, accused Quarles of lightening the Fed’s supervision of Credit Suisse, just months before the bank suffered billions in losses due to its exposure to a hedge fund called Archegos. 

I’ve got more details about the intense back-and-forth here

Dozens of business groups unite in opposition to proposed Democratic tax hikes: More than 25 business associations have united to form a coalition objecting to Democrats’ proposed “job-killing tax increases.”

The group, dubbed America’s Job Creators for a Strong Recovery, believes that raising taxes on corporations and other companies, as President Biden has proposed to pay for his administration’s infrastructure plan, will impede the U.S. economy’s recovery from the coronavirus pandemic.

“Tax increases on America’s job creators would stall the economic recovery rather than fuel it and counteract the economic benefits of smart infrastructure spending,” the coalition organizers wrote in a statement to The Hill. 

The 27 groups involved include the American Hotel and Lodging Association, the International Franchise Association and the Wine and Spirits Wholesalers of America. 

More on what it means from Naomi here.

Top Republican: International tax agreement shouldn’t hurt U.S. businesses: Sen. Mike Crapo (R-Idaho), the top Republican on the Senate Finance Committee, is stressing that it’s important for the U.S. to ensure that any international tax agreement doesn’t harm American businesses.

“The stakes for the United States and our national economy are high,” Crapo wrote in a letter this week to Treasury Secretary Janet Yellen. “The United States should not be willing to accept an agreement that continues to target American companies and lets our biggest competitors off the hook.” 

The Organization for Economic Cooperation and Development (OECD) and the Group of 20 (G-20), two groups of industrial countries, have been working for several years to reach an agreement on international tax issues. Negotiators are hoping to reach a political agreement in July. 

More from Naomi here



  • The chief executives of Wells Fargo, Goldman Sachs, Citigroup, JPMorgan Chase, Bank of America and Morgan Stanley testify before the Senate Banking Committee at 10 a.m.
  • Small Business Administrator Isabella Casillas Guzman testifies before the House Small Business Committee on the SBA’s pandemic relief programs at 10 a.m.
  • A House Financial Services subcommittee holds a hearing on consumer credit report accuracy and compliance at 12 p.m.
  • Securities and Exchange Commission Chairman Gary Gensler testifies before the House Appropriations subcommittee for an oversight hearing at 2 p.m. 


Tags Elizabeth Warren Gary Gensler Janet Yellen Joe Biden Katherine Tai Mike Crapo

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