Trump Business Insights

Trump tariffs spark GOP jitters

Welcome to The Hill's Business & Economy newsletter {beacon} Business & Economy Business & Economy The Big Story Trump tariffs spark GOP jitters Republicans are feeling jittery after the latest jobs report showed the economy added far fewer jobs than previously estimated over the past three months. © Getty Images President Trump and his...

0 0

Welcome to The Hill's Business & Economy newsletter

{beacon}

Business & Economy

The Big Story

Trump tariffs spark GOP jitters

Republicans are feeling jittery after the latest jobs report showed the economy added far fewer jobs than previously estimated over the past three months.

President Trump and his economic team insist the economy is going strong and poised for significant growth, but their bullish projections are meeting skepticism from some in the GOP who worry Trump’s trade regime is creating economic headwinds.

“It definitely is indicative of a weakened economy, an economy that’s not acting in a robust fashion. I’ve all along felt like there’s a lag between tariffs and actual economic downturn,” Sen. Rand Paul (R-Ky.) said.

Trump announced a new round of tariffs, including steep tariff increases on Canada and Brazil, the same day the jobs report was released.

Paul argued the impact of tariffs are often delayed because companies usually sign contracts to set the prices of imports months in advance.

Once those contracts expire, the higher prices of imported raw materials or finished goods are then reflected in the next round of business agreements, he said.

The Hill's Alexander Bolton has more here.

Welcome to The Hill’s Business & Economy newsletter, I'm Aris Folley — covering the intersection of Wall Street and Pennsylvania Avenue.

Did someone forward you this newsletter? Subscribe here.

Essential Reads

Key business and economic news with implications this week and beyond:

Kudlow slams big banks after Trump alleges discrimination

Larry Kudlow, a leading host on Fox Business and a former director of the National Economic Council during President Trump’s first term, slammed one of the nation’s largest banks after the president alleged it turned away his business after he left the White House in 2020.

Full Story

Haley questions Trump’s trade moves with China, India

Former United Nations Ambassador Nikki Haley questioned President Trump’s trade moves with China and India on Tuesday, warning the U.S. shouldn’t “burn” its relationship with India.

Full Story

Bacon: Nebraska GDP down 6 percent under Trump

Rep. Don Bacon (Neb.), a moderate Republican, said he’s concerned about the U.S. economy, noting his state saw a 6 percent annual drop in real gross domestic product (GDP) in the first quarter of 2025.

Full Story

Services sector slows down in July

Economic activity in the services sector fell back modestly in July as businesses held off on making purchases amid policy uncertainties.

Full Story

The Ticker

Upcoming news themes and events we're watching:

Federal Reserve Board Governor Lisa Cook will participate in a discussion on the central bank's perspective on "the evolving global landscape" on Wednesday at 2 pm ET.

In Other News

Branch out with more stories from the day:

Trump narrows Fed chair candidates to four, excluding Treasury Secretary Bessent

WASHINGTON (AP) — President Donald Trump said Tuesday that he’s whittled down his list of potential …

Full Story

Good to Know

Business and economic news we've flagged from other outlets:

S&P 500 closes lower Tuesday, weighed down by tariff fears and poor economic data (CNBC)
Company advised by Trump sons said it hoped to benefit from fed money, then took it back (The Associated Press)
What $4 trillion debt could mean for future generations (ABC News)