As uncertainty continues to swirl amid dynamic U.S. tariff policy, we are monitoring the following:
Following last week’s announcement of a 90-day pause on reciprocal tariffs, the Trump administration has made several subsequent statements that suggest additional modifications and/or exemptions may come soon.
- Late Friday, the administration announced that high-tech imports from China - such as smartphones and computers - will be exempt from the recently imposed 145% reciprocal tariffs.
- However, on Sunday Trump and administration officials confirmed that was a temporary reprieve, and this afternoon the Commerce Department initiated investigations into imports of both semiconductors and pharmaceuticals. These investigations are a precursor to the implementation of sector-specific tariffs.
- Trump also raised the possibility of further product exemptions and suggested today that there could be more carveouts for auto parts that are currently subject to a 25% tariff, since car companies “need a little bit of time” to reshore manufacturing operations.
- China continues to hold the line in the face of Trump’s posturing, having yesterday suspended exports of many critical minerals and magnets to the United States. President Xi Jinping is visiting Vietnam, Malaysia, and Cambodia this week to discuss regional trade cooperation amid global uncertainty.
Administration officials are beginning negotiations with trading partners as foreign leaders make overtures to the White House. National Economic Council Chair Kevin Hassett says over 10 countries have made “amazing” offers on trade following recent tariff announcements, although he declined to provide a fulsome list of countries the White House is considering potential deals with.
- Secretary of Treasury Scott Bessent, who has taken a leading role in the administration’s trade policy, met with leaders in Argentina today.
- EU Trade Commissioner Maros Sefcovic visited Washington, D.C. today to jumpstart negotiations. Last week, the EU announced a 90-day pause on its retaliatory tariff package after Trump implemented a similar pause, during which time leaders are hopeful a deal can be reached.
- Italian Prime Minister Giorgia Meloni will visit D.C. on Thursday to meet with President Trump. She reportedly plans to propose fully eliminating tariffs between the U.S. and the EU. Meloni will also host Vice President Vance in Rome on Friday.
- Japanese Economic Revitalization Minister Ryosei Akazawa will also be in Washington on Thursday to begin negotiations, although Prime Minister Shigeru Ishiba said today that Japan will not “make big concessions for the sake of wrapping up negotiations quickly.”
President Trump continues to sign executive orders covering a wide range of policy issues. In addition to orders related to tariff policy, last week’s relevant orders included:
- Enabling the use of federal lands along the southern border for military activities in support of border security.
- Taking steps to revitalize U.S. commercial shipbuilding capabilities.
- Terminating contracts with law firm Susman Godfrey, making the Houston-based firm the latest to be targeted by Trump. Susman Godfrey has already filed a suit to block the order.
- Instructing the Attorney General to take action against state and local initiatives that curtail domestic energy production.
- Designating coal as a critical mineral for energy purposes and promoting coal use and exports.
- Improving electric grid reliability by expanding the federal role over resource deployment.
After passing the compromise budget resolution last week, Republicans now embark on the difficult task of drafting the reconciliation bill. Speaker of the House Mike Johnson (R-LA) was able to hold his caucus together and pass the framework by a vote of 216-214 last week. With both chambers in recess over the next two weeks, House committees are beginning work in earnest with the goal of holding their first markups when members return to D.C. the week of April 28. Republican leadership continues to express optimism that they can pass the reconciliation bill before Memorial Day; however, that remains a very ambitious timeline given internal disagreement on key provisions.
Before leaving for their two-week recess, the Senate confirmed additional nominees last week. These included:
- Lt. General John Caine (Retired) to be General for appointment as Chairman of the Joint Chiefs of Staff
- Mark Meador to be Federal Trade Commissioner
- Paul Atkins to be a Member of the Securities and Exchange Commission
- Kevin Cabrera to be Ambassador to the Republic of Panama
- Ronald Johnson to be Ambassador to Mexico
- Peter Hoekstra to be Ambassador to Canada
- Mike Huckabee to be Ambassador to Israel