As reciprocal tariffs go into effect this week and Congress formally commences the August recess, we are monitoring the following:
Reciprocal tariffs on global trading partners will go into effect on Thursday, following last week’s executive orders detailing new tariff rates on imports from over 180 nations. While administration officials, including NEC Director Kevin Hassett, are characterizing these as “final deals,” negotiations continue on both broad-based and sector-specific levels.
- President Trump is expected to formalize the handshake deal agreed to with the EU last week, exempting some EU products from tariffs. In response, the EU is postponing a six month pause on countermeasures previously set to take effect on August 7.
- Trump and Canadian Prime Minister Mark Carney are expected to speak “over the next number of days.” Canadian officials remain optimistic, though Trade Minister Dominic LeBlanc admitted that “we’re not yet where we need to go to get the deal that’s in the best interest of the two economies.”
- Switzerland issued a statement expressing readiness to “present a more attractive offer” to the U.S. and “ease the current tariff situation.”
- Facing 50% tariffs, Brazilian President Luiz Inácio Lula da Silva announced he would not impose retaliatory duties, but reiterated that negotiations must be conducted on “equal terms.”
- Earlier today, Trump announced he will be “substantially raising” tariffs on India due to their continued purchases of Russian oil.
The House and Senate are in recess for the remainder of August with key priorities unresolved, including government funding and executive branch nominations. On Friday, the Senate passed its first three appropriations bills after a bipartisan agreement to package them together: an 87–9 vote approved funding for the Departments of Veterans Affairs and Agriculture, military construction, and the Food and Drug Administration; a separate 81–15 vote funded Congressional operations.
- The bills must still pass the House and represent only a portion of what is required to extend government funding past the September 30 deadline, when a continuing resolution is expected. Nevertheless, Senate leaders hope to use them as leverage in broader talks with the House and White House surrounding federal appropriations.
- Speaker of the House Mike Johnson (R-LA) is currently in Israel on a privately organized trip; earlier today he visited a settlement in the occupied West Bank.
A small group of nominees were confirmed by the Senate over the weekend before the recess, but efforts to expedite more of Trump’s nominees remain stalled as leaders could not reach a bipartisan agreement.
- In response to Democrats’ continued effort to slow walk Trump appointees, Senate Republicans are now considering a rules change to prevent further delays.
- Nominees confirmed over the weekend include:
- Luke Lindberg, Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs
- Marcus Molinaro, Federal Transit Administrator
- Sean Cairncross, National Cyber Director
- Catherine Hanson, Chief Financial Officer, Environmental Protection Agency
- John Arrigo, Ambassador to the Portuguese Republic
- Brian Burch, Ambassador to the Holy See
- Andrew Puzder, Representative of the United States of America to the European Union, with the rank of Ambassador
- Jason Reding Quinones, United States Attorney for the Southern District of Florida
- Adam Telle, Assistant Secretary of the Army
- Jeanine Pirro, of New York, United States Attorney for the District of Columbia
- Nominees confirmed over the weekend include:
President Trump is eyeing changes to the administration’s economic team after firing Bureau of Labor Statistics Commissioner Erika McEntarfer, and is focusing on a new Fed vacancy as a way to exert more authority over interest rate decisions.
- On Friday, Trump fired Commissioner McEntarfer following the release of this month’s jobs report, which Trump claimed was rigged with incorrect data. Over the weekend, he told reporters that he will replace McEntarfer in the next 3-4 days.
- Also over the weekend, Biden-appointed Federal Reserve Governor Adriana Kugler resigned. Trump is considering several possible replacements for her position, while calling on Federal Reserve Chair Powell to resign with her.
A redistricting battle in the Texas legislature is sparking a broader conversation around redistricting nationwide, with potential to significantly impact the outcomes of the 2026 midterm elections.
- Texas Democrats left the state over the weekend to deny a quorum to vote on the newly proposed redistricting maps, risking fines, removal from office or even felony charges. The proposed maps would heavily favor Republicans in 2026, likely giving the GOP five additional seats in the Lone Star State.
- In response to Texas’ attempted redistricting, some blue-led states including California, New York, and New Jersey are expressing openness to redistricting their states to better support Democratic candidates. In Florida, Governor Ron DeSantis is also considering implementing a new, GOP-friendly gerrymander.