Tariff hikes and government shutdown loom as deadlines approach
Two major deadlines this week could have significant economic and political consequences.
NBC– Two major deadlines this week could have significant economic and political consequences—new tariffs on steel and aluminum imports take effect Wednesday, and Congress must pass a government funding bill by Friday to avoid a shutdown. President Donald Trump acknowledged the shutdown risk but expressed confidence in a short-term funding bill that House Speaker Mike Johnson plans to bring for a vote tomorrow. The proposal increases defense spending while cutting funding in other areas, drawing sharp criticism from both sides of the aisle. “The CR is terrible on defense and the border,” said Republican Senator Lindsey Graham of South Carolina, referring to the continuing resolution.
Even if the Republican House majority passes the bill, it would still need support from Senate Democrats, who are strongly opposed to cuts in healthcare and food assistance. “Everyone knows Congress has the power of the purse,” said Senator Elissa Slotkin (D-Michigan). “I’m going to withhold my vote until I see that.”
Economic concerns are mounting as new 25% tariffs on all steel and aluminum imports into the U.S. are set to take effect. While mainstream economists warn of potential inflation and rising costs, the Trump administration is standing by its trade policies. “There’s going to be no recession in America,” Commerce Secretary Howard Lutnick declared.
President Trump was less definitive when asked about a potential downturn. “I hate to predict things like that,” he said in a Fox News interview. “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America.” Trump remains steadfast in his belief that tariffs will ultimately strengthen the U.S. economy, despite immediate concerns from businesses and consumers. “I think the tariffs are going to be the greatest thing we’ve ever done as a country,” he stated.
As the nation braces for possible economic turbulence, the Trump administration is also considering additional tariffs on Canadian lumber and dairy products—on top of the existing 25% levy on most Canadian goods. In response, Canada has vowed to retaliate with its own tariffs, further escalating trade tensions.
