We’ll look at the latest on President Trump’s economic policies, tariffs, transactions and, of course, the massive spending bills currently in front of the Senate.
Ayesha Rascoe, host:
President Trump’s massive tax reduction bill is on his way to the Senate, which has significantly reduced programs such as Medicaid and Food Stamps. Meanwhile, the legitimate dispute over the president’s tariffs continues as businesses and consumers try to understand where things are as well. Tamara Keith, NPR Senior White House correspondent, is now joining us. Good morning, Tam.
Tamara Keith, byline: Good morning, Ayesha.
Rascoe: So, is it clear what Trump’s economic policy really is?
Keith: Well, the plan is to complete this bill, inject money into the economy through tax cuts, starve governments as much as possible, and in theory, negotiate trade deals that are actually benefiting the US. White House officials say they’ve been approaching ink deals for weeks, but they haven’t shown much yet. As you said, tariffs have some difficulty in court, but the current state of play can proceed for now. And Trump’s tariff policy was like a roller coaster of high drama – a massive tariff was announced and partially rewinded.
There was good economic news on Friday. Important measures of inflation showed little change. Tariff-driven prices rise as many warn that they haven’t hit consumers yet. Also, after the Trump trade war began, rocky in April, stock markets were positive in May. So Trump has declared victory with his usual grandeur.
Lascaux: I understand. Now, President Trump’s rally scream is America’s first. You have made some reports on the deal he announced between Nippon Steel and US Steel. What do we know about this transaction?
Keith: Yeah, he held a rally outside Pittsburgh to celebrate the planned partnership. The way it has been structured for over a year is for Japanese companies to acquire US steel in a very large amount of surplus, as President Biden blocked the sale when he was president of the national security venue. And during the campaign, Trump promised he would do the same, but he’s now turning himself around by saying we’re still under US control. But no one seems to know how it works. When asked President Trump on Friday night after the rally if this was an acquisition and whether Japan owns US steel, Trump did not respond directly, but he described it as an investment.
Lascaux: I understand. So the House barely passed President Trump’s tax cut bill, and is now heading for the Senate. What are you looking for there?
Keith: Yes. The big question is how difficult it is for Senate Republicans to pass this, and how many changes they will make to the house version. There is a lot of pressure on Senate Republicans. Because this basically includes all Trump’s domestic agenda in one bill. It’s cuts to tax cuts, immigration spending, Medicaid and other programs. Democrats are locked in food aid and Medicaid cuts that provide health care to low-income Americans.
And Iowa Republican Sen. Joni Ernst gave a now-viral comment and gift at City Hall. It was a controversial gathering, and at one point someone in the audience raised concerns that Medicaid cuts could have fatal consequences for millions of people who could lose their coverage. And Ernst replied, quoting, “We will all die. For the sake of heaven, for the sake of the people.” And yesterday, she doubled with a sarcastic Instagram post.
(Sound bites of archived recordings)
Joni Ernst: I made the false assumption that everyone in the auditorium understands, yes, that we all will perish from this earth. So I apologize. And I am truly pleased that I didn’t have to raise the tooth fairy subject.
Keith: So, this probably shouldn’t go away anytime soon. Trump has called for his party to line up, but some Republican senators are wary of the expected addition to the deficit. And at least one has issued an alarm about Medicaid cuts being a political toxicity.
Rascoe: And finally, late last night, President Trump announced that he would withdraw the nomination of fellow Elon Musk Tech billionaire Jared Isaacman to lead NASA. What do we know about it?
Keith: You know, his confirmation process has been going well, but President Trump posted last night that he made this decision after a thorough review of Isaac Man’s previous association. This version of the Trump administration called for loyalty and increased vetting, and Isaacman has been a campaign contributor to the Democrats for many years.
Rascoe: That’s Tamara Keith, senior White House correspondent at NPR. Thank you for talking to us.
Keith: You’re welcome.
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