US to Narrow Metals Tariffs; DHS Shutdown Looms as Senate Fails to Cut Deal

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager and I'm John Tucker. Here
are these stories we're following today.
John, We begin with new developments this morning on global tariffs.
Bloomberg News has learned the Trump administration is working to
narrow its broad duties on steel and aluminum products. We
get more from Bloomberg Global Trades are Brendan Murray.
Well, what we know is the Trump administration has acknowledged
that the steel and aluminum tariffs that they rolled out
in waves last year are overly complicated for a lot
of companies and have really created a lot of unintended
victims that have to pay these tariffs. They rolled out
the first twenty five percent tariff and in March of
twenty twenty five.
Then they raised it to fifty percent in June, and
then in August they extended the scope of the tariffs
to include a whole host of maybe hundreds of goods
that contain steel and aluminum.
Bloomberg's Brendan Murray says ending or curtailing the derivative tariffs
would be a positive step for the US European Union
Trade Accord.
And meanwhile, Nathan. The Environmental Protection Agency has revoked a
key scientific finding that supported US regulations on greenhouse gas emissions.
Let's get that story from Washington and Bloomberg's Amy Morris.
The move recinds a two thousand and nine declaration that
carbon dioxide and other gases endanger public health. EPA administrator
Lee Zelden calls this a major deregulatory action. President Trump says,
ultimately it saves money.
This action will eliminate over one point three trillion dollars
of regulatory costs and help bring car prices tumbling down dramatically.
The so called endangerment finding serves as the legal foundation
for a lot of environmental rules, including federal standards for
vehicle emissions. Trump says he'll also repeal the Amy Morris
Bloomberg Radio All.
Right, Amy, thank you mon Capitol Hill, it's gone quiet.
The Senate has headed out for a week long recess.
The federal government is headed for its second partial shutdown
in as many months, and the third since President Trump
returned to office. This one will affect only the Department
of Homeland Security. The Senate failed to begin debate on
a year long bill for the agency that included no
changes to immigration enforcement. Senate minoriti leader Chuck Schumer says
that would have been unacceptable.
This vote today asked a simple question, will you rain
in ICE's abuses or will you vote to extend the chaos.
Republicans chose chaos, and the Democrats we refused.
Minority Leader Chuck Schumer says Democrats want immigration agents to
where body cameras and obtain warrants, take off masks, and
have limited immunity from lawsuits. Majority Leader John Thune says
the White House presented a good faith counteroffer, but he
says it looks like the Democrats aren't serious. Under a shutdown,
most DHS employees will be expected to work without pay.
That includes the Transportation Security Administration, which could mean a
strain at the airports and more.
Fallout. This morning from the Jeffrey Epstein scandal, Goldman Sachs
top lawyer Kathy Rembler leaving the firm. This follows a
cash of Department of Justice documents showing her links to
the SAX offender. Rembler, who's going to leave on June thirtieth,
was well known for a time as a White House
council in Barack Obama's administration. She was hired by Goldman
Sachs in twenty twenty and later became its legal chief.
All right, John, let's get you an update now on
the search for Savannah Guthrie's mother, Nancy. Tomorrow will be
two weeks since the Today Show host's mother was last
seen at her home near Tucson. The FBI has doubled
the reward for information leading to her captors to one
hundred thousand dollars, and investigators are asking neighbors to share
surveillance camera footage of suspicious cars or people they may
have seen in the month before she disappeared. This neighbor
just hopes they find Nancy Guthrie.
She was the kindest, formest, the most giving person I've
ever met, and has passed on to her daughter Savannah
as well because as how Sapana is.
The FBI has also released more information about the masked
man seen in surveillance video on Nancy Guthrie's front porch.
They now say he is a suspect. He's five nine
or five ten with an average build, wearing a black
twenty five liters Ozark trail hiker pack backpack.
And Venezuela is planning to grant more oil production land
to Chevron in Spain's REPSOL, as the Trump administration pushes
for private companies to rebuild that nation's energy sector. Sources
are telling Bloomberg that officials in Carancas are poised to
award the exploration of production blocks as soon as this week.
Energy Secretary Chris Wright spoke to Bloomberg's a Marie Hordern
about rebuilding the country's oil sector.
I think in the first year we'll see pretty significant
thirty forty percent growth in Venezuelan oil production. This year,
you can continue production growth rate at a pretty good clip.
Venezuela does have the largest proved oil reserves, which is
the technical concept, much larger than the.
US Energy Secretary Chris Wright speaking to Bloomberg's Amory hor
drning Caracas. But Trump administration is expected to issue a
general license to allow international oil companies to explore and
produce in Venezuela without violating US sanctions.
Let's turn to the markets now, John. Following another tech
fueled sell off on Wall Street, which saw the Nasdaq
fall two percent yesterday, this morning, futures are mixed, but
shares of applied materials are surging. They're twelve percent now
in the pre market. The largest US supplier of chip
making gear delivered an upbeat sales forecasts, signaling demand for
artificial intelligence and memory semiconductors is fueling equipment purchases. Federal
Reserve Governor Stephen Myron is once again calling for lower
interest rates. He says the biggest risk to the economy
right now is policymakers underestimating how much rates are restraining growth.
It's still slacking the economy. Increased potential output that can
be accommodated by looser monitor policy. And so the combination
of these things leads me to think that montary policy
is tighter than it needs to be, and that we
can we can, we can afford to have lower interest rates.
FED Governor Stephen Myron spoke at an event in Dallas.
He says underlying inflation is very close to the Fed's
two percent target.
And another big payday for a banking boss. City Group
has boosted the pay chief executive officer Jane Fraser to
forty two million dollars, a twenty two percent increase follows
a year in which City Group stock rows sixty six percent.
That's more than any other Roll Street bank. The pay
bump puts Fraser's total package for the year of twenty
twenty five just a million dollars behind that of JP
Morgan Chase CEO, Jamie Diamond.
And John.
We're watching the skies this morning, with NASA said to
launch four astronauts to the International Space Station, replacing a
crew that had to be evacuated early due to a
medical issue. This is Crew twelve's mission aboard a SpaceX
found nine rocket. The pre dawn launch was delayed by
two days due to adverse weather conditions across the East Coast.
These astronauts are expected to arrive at the orbiting iss
by tomorrow afternoon.
Hey, that brings us to a five pot one on
Wall Street. Time for a look at somebody other stories
making news in New York and around the world, and
for that which run by Bloomberg's Michael Barr. Michael, good morning,
Good morning John.
It's a victory for the Gateway Tunnel project under the
Hudson River in New York. The Trump administration is expected
to restore federal funding for the tunnel construction after a
deadline passed for an appeals court to block a judge's
order to release the money. New York Attorney General Letitia
James and New Jersey Acting Attorney General Jennifer Davenport said
the administration must immediately release funding for the project. As
the order is now in effect, the federal government could
still ask the Supreme Court to put the judges order
on hohold. A federal judge agreed to block the Pentagon
from punishing Senator Mark Kelly for taking part in a
video telling troops to resist unlawful orders. It comes days
after a federal grand jury refused to bring charges against
the group of Democratic lawmakers for the same video. Defense
Secretary Pete Hegseeth moved to demote Kelly from his rank
of captain. However, US District Judge Richard Leon ruled that
Pentagon officials not only violated at Kelly's First Amendment free
speech rights, but they also threatened the constitutional liberties of
millions of military retirees. Kelly spoke after the judge's ruling,
so again.
This isn't about me, a Scott.
This is about an administration that is out of control
on so many different levels.
Some Republicans' support for Hexas's move, but others like GOP.
Senator Mkowski accused the administration of trying to make criminals
out of lawmakers. Senator Kelly says he's fighting because retired
service members have told him they change what they say
and do because of how President Trump is acting. The
Pride Flag is flying once again at the historic Stonewall
Inn in Greenwich Village, New York City. Elected officials raised
the flag once again. Earlier this week, the National Park
Service removed the rainbow flag at the federal monument dedicated
to LGBTQ, Wright, saying it was in line with administration guidelines.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now. I'm Michael Barr, and
this is Bloomberg. Thanks Michael.
Time now for a Bloomberg Sports update. For that, we
bring in John stash Hour.
Last game before the NBA All Star Break, the Lakers
won by twenty over Dallas and Lebron James, at age
forty one, scored or assisted on each of the lakers
first twenty three points. It never done that before in
an NBA game. Man had a triple double, the oldest
to ever do that. At the Olympics today, the play
Italy and the women's hockey quarterfinals, the US team is
four and o by a combined score of twenty to one.
And in men's finger skating, the American Ilia Malinin goes
for the gold. That's a Bloomberg Sports update. Stay with us.
More from Bloomberg Daybreak coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. The White House may be
ready to do some tinkering with a piece of President
Trump's terriff regime that has proven complicated. Bloomberg News has
learned the administration's working to narrow its broad duties on
steel and aluminum. For more, we're joined by Bloomberg News
Global Trades are Brendan Murray Brendon, Good morning. What are
we hearing about the Trump Administration's plans here?
So, if you recall, the President put twenty five percent
tariff on steel and aluminum in March of last year,
then he raised it to fifty percent in June of
last year, and then and then he added about four
hundred products that that have steel and aluminum in them
in August, So he that captured a lot of imports
and created some collateral damage from companies that use steel
and aluminum. You can imagine how hard it is to
figure out how much of the contents of a product
you import contain steel and aluminum. And those companies have
complained to the White House, and the White House has
acknowledged that the complexity has gotten to to uh to
too much for these companies to handle. So it sounds
like our reporting says that the administration is going to
come at this with a more tailored approach rather than
the sort of shotgun approach they had last year.
So what would a tailored approach necessarily look like.
Well, they could they could pull back the the derivative
product tariffs that they that they rolled out in August.
That really annoyed the Europeans because the Europeans just a
few weeks earlier had negotiated a trade deal with the
US and when they and when they hit these other
hundreds of products, the Europeans were like, you know, I
thought we had a deal here, but but but you've
just hit us with a whole lot more so, they
could they could pull those back, They could create some
exclusions for the for for tariffs that companies are are
having trouble paying uh. And so ultimately these were designed
to protect the steel industry, but what they've done is
they've hit the users of steel, the domestic users of steel.
UH.
And you could all you have to look at is
Ford in general. Motors this week said that they paid
five billion dollars combined last year in US tariffs. And
that's because automakers use a lot of steel and aluminum.
So is this the kind of thing that could smooth
over the US EU trade deal? I mean, there's been
a lot of back and forth in terms of getting
this thing ratified.
Yeah, that's the derivative product issue has been a big
hang up for the Europeans. And and if and if
it can be if it could be dealt with, and
then that will go a long way toward resolving some
of Brussels's issues with the tariffs as they see them.
Now.
The implementation of that deal is still hasn't been fully
carried through on the European side, and so that could
help bring that deal over the line.
Of course, Brendany, as you know, This is coming at
a time where a lot of Americans are concerned about
the cost of living and whether tariffs are feeding into that.
Is that part of the calculus here from what you're
hearing from the White House as far as these steal
and aluminum tariffs go, that this could be a means
to address some of those concerns.
Absolutely, we've heard from both the Federal Reserve and the
Congressional Budget Office this week that American consumers and businesses
are paying the lion's share of the tariff bill, and
we're going to get some consumer price numbers this morning,
so we'll see how inflation looks as it stood in January.
So absolutely, the White Houses is trying to moderate its
approach given the pressures that are coming from Congress and
from and from consumers on the cost of living and
the affordability.
Issue, and given the potential impact here on the auto industry.
What could this mean for the you know, the ongoing
negotiations around the US Mexico Canada agreement. We've been reporting
that President Trump is at least privately talking about why
don't I just walk away from it?
Yeah, exactly, so that the President Trump has really been
picking on the Canadians recently and in Mexico and Canada. Uh,
you know, would be would be inter woven into the
auto supply chain with the US and Mexico and Canada.
Also you know have a lot of you know, sort
of steel and aluminum imports. So it all factors into
the broader negotiations that are going to take place this
year for that North American free trade agreement.
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