On The Money: Trump hits Mexico with new tariffs over immigration | White House starts clock on approval for new NAFTA | Third House Republican blocks disaster aid bill

Happy Thursday and welcome back to On The Money, where we’re wondering what the federal government will do with its new piece of prime real estate. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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BREAKING… Trump hits Mexico with new tariffs:

President Trump announced late Thursday that he would implement a 5 percent tariff on imports from Mexico starting June 10, “until such time as illegal migrants coming through Mexico, and into our Country, STOP.”

“On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,..” Trump tweeted.{mosads}

The announcement follows a day of speculation after Trump said Thursday morning he would make his “biggest statement yet” on the border.

Click here for more on this breaking story.

 

THE BIG DEAL–White House starts clock on approval for new NAFTA: The White House on Thursday formally notified Congress that it is starting the approval process for President Trump’s revision of the North American Free Trade Agreement (NAFTA), triggering a showdown with congressional Democrats over Trump’s signature trade agreement.

The White House sent a draft statement of administrative action to lawmakers, a necessary step for the new NAFTA to be considered on a fast-track basis.

 

Why it’s important: The decision is designed to put pressure on House Democrats, who have objections to the revised trade pact and have reportedly warned the White House not to begin the formal process of submitting it to Congress. The Hill’s Jordan Fabian tells us more here.

 

How it works:  

• The formal notice would kick off a minimum 30-day period before the implementing the legislation would be sent to Congress, though it is possible the White House could further delay introducing the legislation to provide more time for negotiations.

• Once the bill is introduced, the House would have 60 days to vote whether to send it to the Senate. Congress could not change the agreement or filibuster it under fast-track.

 

Pressure on Pelosi: The move inflamed tensions with Democrats, who wanted stronger enforcement mechanisms and higher standards for labor and environmental protection.

Speaker Nancy Pelosi (D-Calif.) had warned U.S. Trade Representative Robert Lighthizer not to send the draft statement in order to buy more time for negotiations.

“The Trump Administration’s decision to send Congress a draft statement of administrative action before we have finished working with … Lighthizer to ensure the USMCA benefits American workers and farmers is not a positive step,” Pelosi said Thursday. 

“It indicates a lack of knowledge on the part of the Administration on the policy and process to pass a trade agreement.”

 

LEADING THE DAY:

Third House Republican blocks disaster aid bill: A conservative House Republican prevented the passage of a disaster aid bill on Thursday, meaning lawmakers won’t be able to send the measure to President Trump until the chamber reconvenes next week.

Rep. John Rose (R-Tenn.) objected to the third attempt by Democrats in the last week to clear a $19.1 billion package providing funds for disaster-stricken areas by unanimous consent.

House members left Washington last Thursday for the Memorial Day recess and won’t be back until Monday. Democrats tried to clear the bill during pro forma sessions with few lawmakers present last Friday and on Tuesday but were met with objections from conservative Republicans who demanded a roll call vote.

“Our nation is $22 trillion in debt, trying to pass nearly $20 billion in new spending while the majority of Congress is not even in Washington,” Rose said, calling the attempt to pass the disaster aid package by unanimous consent “another act of irresponsible big government.”

The disaster aid measure, which is  supported by Republican leadership, is expected to pass once Democrats put it to a roll call vote next week.

While Rose blocked the disaster aid bill, the House did pass by unanimous consent a two-week extension of the National Flood Insurance Program, which was set to expire Friday at midnight.

 

Democratic senators rip Trump administration’s trade aid to foreign firms: A group of Senate Democrats is pushing the Agriculture Department (USDA) to halt trade-related aid to foreign-owned corporations as the Trump administration faces backlash for more than $60 million in payments to a Brazilian meatpacking firm.

In a Wednesday letter to Agriculture Secretary Sonny Perdue released publicly on Thursday, nine Democratic senators criticized the USDA for purchasing pork from JBS USA, an American subsidiary of Brazilian corporation JBS SA.

“It is unacceptable that American taxpayers have been subsidizing our competitors through trade assistance,” wrote the senators, including Senate Minority Leader Charles Schumer (D-N.Y.) and two of the Democratic Party’s 2020 presidential candidates, Sens. Kirsten Gillibrand (N.Y.) and Amy Klobuchar (Minn.).

Democratic Sens. Debbie Stabenow (Mich.), Sherrod Brown (Ohio), Patrick Leahy (Vt.), Richard Blumenthal (Conn.), Patty Murray (Wash.), and Tammy Baldwin (Wis.) also signed the letter.

“We ask that you ensure these commodity purchases are carried out in a manner that most benefits the American farmer’s bottom line–not the business interests of foreign corporations.”

 

The background: Trump rolled out $12 billion in direct aid and purchases for farmers and ranchers targeted by tariffs and said last week he would release another $16 billion in assistance.

JBS USA, the second-largest meatpacker in the U.S., has received $64 million in pork purchases from the first tranche of aid, which the company says will go to American hog-raisers that sell to their production plants.

• Democrats have spoken out against the Trump administration sending any federal aid to a company owned by a foreign corporation.

• But GOP lawmakers have been mum about JBS USA and Joesely and Wesley Batista, the Brazilian brothers who own its parent corporation, JBS SA.

• The Batistas have admitted to bribing thousands of Brazilian officials, have spent time in and out of jail in Brazil, and are facing accusations of insider trading and lying to prosecutors. The Justice Department is also investigating the Batistas for violating the Foreign Corrupt Practices Act, according to court records obtained by The Hill.

 

GOOD TO KNOW

• The top Democrat on the Senate Finance Committee on Thursday threatened to block nominees to the Treasury Department until the Trump administration answers questions about the handling of a Democratic request for the president’s tax returns.

• The Bureau of Economic Analysis on Thursday revised first-quarter gross domestic product (GDP) growth down to 3.1 percent from the advance estimate of 3.2 percent.

• A federal judge on Thursday rejected the Trump administration’s request to pause an order blocking the White House from using some diverted military funds to start building a wall at the southern border.

• Tariffs are taking a toll on Pacific Northwest grain exports, according to The Columbian.

• JPMorgan Chase will pay $5 million to resolve allegations its parental leave policy discriminated against men, according to HuffPost.

 

ODDS AND ENDS

• National security adviser John Bolton said Thursday that British officials may still be undecided on whether to move forward with giving Chinese telecom giant Huawei access to parts of the country’s 5G network.

• Health care costs are the top financial issue facing most American families, according to a new Gallup poll released Thursday.