Member Briefing August 20, 2025
Commerce Adds Over 400 New HTS Codes to the Section 232 Steel and Aluminum Tariffs
The U.S. has expanded the list of goods subject to Section 232 tariffs on steel and aluminum imports, per Customs and Border Protection bulletins published Friday. In the bulletins, CBP provided lists of Harmonized Tariff Schedule codes for hundreds of products that will incur 50% tariffs upon entry into the U.S, effective Monday. The goods listed include locomotives, motorcycles, truck trailers and certain car parts, as well as numerous household appliances, such as refrigerators, dishwashing machines, stoves and ovens, laundry machines and microwaves.
“By my count, the steel and aluminum tariffs now affect at least $320 billion of imports based on 2024’s general customs value of imports,” said Jason Miller, a professor of supply chain management at Michigan State University, in a LinkedIn post Sunday. The Trump administration has previously expanded the list of product types covered under executive orders implementing tariffs, including those on steel and aluminum imports. For example, the White House in April added empty aluminum cans and beer as derivative products subject to aluminum levies. “This isn’t over,” said Pete Mento, director of global customs at DSV, in a LinkedIn post Monday. “The next list will surely be for copper and I expect that to be equally as miserable.”
U.S. Housing Starts Unexpectedly Surge 5.2% In July, But Permits Fall
Total housing starts surprised to the upside and jumped 5.2% in July. Although single-family and multifamily starts both improved during the month, another drop in building permits suggests that residential construction remains under pressure from high interest rates and unfavorable supply conditions. Notably, single family construction is pulling back as builders seek to balance high inventory levels with lack-luster demand on account of elevated mortgage rates and better availability in the resale market.
- Single-family starts perked up by 2.8% in July to a 939K annualized pace. This improvement only partially erased the prior month's decline, however, and kept the pace of starts down 4.2% on a year-to-date basis.
- The number of single-family homes under construction dipped by 1.0% in July to 621K. That said, the number of homes in the construction pipeline remains highly elevated at present, sitting 18.7% above January 2020.
- The NAHB Housing Market Index dipped one point in August, reflecting ongoing concerns from single-family home builders over persistent affordability challenges and elevated new home supply. August’s decline was driven by deteriorating present sales conditions, which fell to its lowest reading since June 2012.
- Multifamily starts climbed 9.9% to a 489K rate in July, lifting the pace of groundbreakings 18.9% year-to-date.
- Permits backtracked by 8.2%, but multifamily data can be highly volatile month-to-month. Through the noise, multifamily permits are up 1.6% year-to-date.
Central Bankers Flock to Jackson Hole at Pivotal Moment
big week is coming up for the Federal Reserve and central bank enthusiasts. The Kansas City Fed’s annual Economic Policy Symposium kicks off Thursday evening in Jackson Hole, Wyoming. Chair Jerome Powell in remarks on Friday is expected to unveil the Fed’s new policy framework — the strategy it’ll use to achieve its inflation and employment goals. Powell may also drop some hints about the Fed’s thinking ahead of its September policy meeting. Officials have left interest rates on hold so far this year as they wait to see how the Trump administration’s tariffs impact the economy.
The global nature of the Jackson Hole conference also offers an opportunity for Powell’s peers to express their support amid persistent criticism from President Donald Trump. Central bank independence is likely to be a topic on the sidelines of the confab. A handful of economists will present new research papers during the meeting, and there’s usually a panel featuring heads of some of the world’s biggest central banks.
Global Headlines
Middle East
- Israel Demands Release Of All Hostages As It Reviews Hamas Ceasefire Response – Reuters
- What Does The Gaza Hostage Deal Accepted By Hamas Include? – France 24
- Gaza Ceasefire Proposal Agreed By Hamas Is "Almost Identical" To Witkoff's Plan, Qatari Official Says - Reuters
- Iran’s Revolutionary Guard Defies US and Israel - Bloomberg
- A Devastating Drought In Iran - NPR
- From Graffiti To Murder: How Iran Lures Israeli Citizens Into Spy Missions – France 24
- Interactive Map- Israel’s Operation In Gaza – Institute For The Study Of War
- Map – Conflicts in the Middle East – Live Universal Awareness Map
Ukraine
- Trump Plans to Get Putin and Zelensky Talking. That’s Not Even the Hard Part. – WSJ
- Moscow Waffles On Putin-Zelenskyy Summit As Trump Escalates Pressure -Politico
- A Patch-Up With Zelensky, a Side Call With Putin: Trump’s Day of Diplomacy – WSJ
- NATO Chief: Trump A ‘Pragmatic Peacemaker’ – The Hill
- NATO Military Leaders To Meet On Wednesday To Discuss Ukraine - Reuters
- Switzerland Says It Won’t Arrest Putin If He Comes For Peace Talks - Politico
- Trump Promised Ukraine ‘Security Guarantees’: Here’s What They Could Look Like - CNBC
- Trump Rules Out Sending US Troops To Ukraine As Part Of Security Guarantees - BBC
- Interactive Map: Assessed Control Of Terrain In Ukraine – Institute For The Study Of War
- Map – Tracking Russia’s Invasion Of Ukraine – Live Universal Awareness Map
Other Headlines
- A Centrist Surges in Bolivia as Voters Turn Away From Socialism – NYT
- Burkina Faso's Junta Expels Top UN Official Over Child Rights Report - BBC
- Brussels Heads For A Fall Fight Over Limiting Subsidies To Big Farms - Politico
- Very Cold War: Brutal Arctic Conditions Are Testing U.S. and Allied Forces - WSJ
- China Releases Footage of Encounter with US Warship - Newsweek
- Air Canada Flights Slowly Resume After Flight Attendants Agree To End Their Strike - NPR
- Navy Deploys 3 Missile Destroyers Off Coast Of Venezuela To Counter Latin American Drug Cartels - Newsweek
- DR Congo And M23 Rebels Miss Peace Deal Deadline But Will Continue Talks – France 24
Policy and Politics
Trump Admin Eyes Interagency Agreements To Consolidate Workforce Programs
The Trump administration is advancing interagency agreements to consolidate workforce development programs against the backdrop of proposed cuts to employment and training grants. The administration’s recently released “America’s Talent Strategy: Building the Workforce for the Golden Age” details the broad strokes behind the White House’s push for consolidation at workforce and statistical programs. The strategy was developed by the Labor Department, the Commerce Department and the Department of Education. The broad strategy features five pillars, including a focus on “integrated systems” across the federal government.
The Labor Department has proposed consolidating 11 Labor Department workforce programs into a single grant stream called “Make America Skilled Again,” or MASA. Some organizations, such as the National Association of Workforce Boards, have criticized the administration’s proposal for cutting workforce development programs by roughly 29%. The talent strategy also discusses the Trump administration’s plan to reorganize federal statistical agencies. The administration says it will work with Congress to consolidate and reorganize the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the Census Bureau under the Commerce Department.
Read more at The Federal News Network
NY Missed Out On Nearly $500 Million By Not Switching Seniors To Medicare
The state comptroller’s office found that the state Department of Health missed out on nearly half a billion dollars in savings because Medicaid patients weren’t enrolled in Medicare once they reached 65. The missed opportunity comes as the state health care budget is in for a reckoning due to cuts in federal funding.
The comptroller's office followed up on a 2021 audit looking at Medicaid enrollment levels among seniors who were eligible for Medicare. New York’s eligibility system is supposed to automatically switch the initial burden of payment from Medicaid to Medicare once a patient turns 65 and is enrolled in the federal program, but the New York State of Health marketplace, a growing entry point for Medicaid, does not always guarantee the transfer. The automatic switch was paused in 2020 to prevent coverage lapses during the pandemic.
Bessent Says Interviews For ‘Incredible Group’ Of Potential Fed Chairs Will Start After Labor Day
Treasury Secretary Scott Bessent said Tuesday he will begin interviewing candidates for Federal Reserve chair as soon as the White House whittles down what has suddenly become a crowded field. In a CNBC “Squawk Box” interview, Bessent confirmed the race to replace current Chair Jerome Powell is between 11 candidates, an array that includes past and present central bank officials as well as economists, a White House advisor and a few Wall Street market experts.
“In terms of the interview process, we’ve announced 11 very strong candidates. I’m going to be meeting with them probably right after, Labor Day, and to start bringing down the list to present to President Trump,” he said. “It’s an incredible group.” That list is believed to include current governors Michelle Bowman and Christopher Waller, Dallas Fed President Lorie Logan, White House economist Kevin Hassett and former governor Kevin Warsh. Strategists Rick Rieder of BlackRock and David Zervos of Jefferies also are part of the group, as well as economist Marc Sumerlin, former governor Larry Lindsey and former St. Louis Fed President James Bullard.
Political Headlines
- Trump Targets Corporate America to Achieve Economic and Foreign Policy Goals – Bloomberg
- Trump Adds Firepower To National Guard Presence In DC – The Hill
- Why Senate Republicans Won’t Scrap The ‘Blue Slip’ - Politico
- 5th Circ. Says NLRB Structure Likely Unconstitutional – Law 360
- Gavin Newsom Surges in 2028 Presidential Primary Poll - Newsweek
- Energy Department Launches Nuclear Reactor Pilot Program - Politico
- Will Redistricting Fight Spread After Texas And California? These States Could Be Next - Forbes
- 6,000 Student Visas Revoked: State Department – The Hill
- Air Force Chief Announces He's Leaving Post Early - Politico
- Hurricane Erin is Growing Larger as it Approaches US East Coast: Live Updates - Newsweek
- Elise Stefanik Drowned Out by Relentless Boos at Memorial Event - Newsweek
- Trump Tracker: Keep Tabs On The Latest Announcements And Executive Orders - WSJ
Health and Wellness
$47B: Employees' Mental Health Struggles Costly For Economy, Employers
Employers say that the wellbeing of their employees is a priority – and many invest in employee assistance programs (EAPs) – yet many workers hold back from seeking the support they need due to stigma and confidentiality concerns. The Prudential Financial Inc.’s 2025 Benefits & Beyond study recently revealed that nearly two-thirds (63%) of U.S. workers say they are worried about mental health for themselves or their families. Despite these concerns, however, over half of employees with access to EAPs have not taken advantage of their services, which offer confidential and professional support for personal or work-related issues.
The study reveals that many employees are hesitant to use mental health resources or even discuss mental health at work due to barriers such as a fear of negative consequences (40%), concerns about confidentiality (38%), and worries about job security if they take a mental health leave (38%). Additionally, the study reveals that there appears to be a large gap in communications and awareness of EAPs. Although employers believe they communicate about EAPs frequently, 22% of employees said they know little about their available benefits and 1 in 10 finds them too complex. The report recommends that when it comes to mental health support, employers should consider options beyond the standard benefits typically offered during open enrollment. Both employers and employees said they agree the three most helpful and realistic offerings include mental health days, flexible work schedules, and stress management programs.
Industry News
Trade Wars
- India Suspends Cotton Import Duty In Signal To US, Relief For Garment Industry – Reuters
- EU Says Draft Joint Statement On Trade And Tariffs Sent Back To US – Yahoo Finance
- US Copper Firms Hike Prices Even After Trump Tariff Reprieve - Bloomberg
- Exports To The U.S. From The European Union Dropped 10% In June From A Year Earlier - WSJ
- US Roasters Shun Coffee From Brazil After 50% Tariffs Kick In – Yahoo Finance
- Hiring in the Age of Tariffs: Manufacturing Leaders Sound Off - IndustryWeek
- De Minimis’ End: How Shippers Are Adapting For Peak Season And Beyond – Supply Chain Dive
Global Economy Took Tariff Hike in Its Stride, But Stronger Headwinds Are Ahead
As more countries release figures for economic growth that cover the second quarter of this year, a clear pattern has emerged. Those that grew rapidly in the first quarter as U.S. businesses raced to build up inventories ahead of higher tariffs slowed in the second quarter as those duties were imposed. The most salient example of that swing was Ireland, which saw its gross domestic product increase by 7.4% in the three months through March, before seeing it drop by 1% in the three months through June. A less operatic version was set out in data released Thursday by the U.K.’s statistics agency, which recorded a slowdown to 0.3% from 0.7% between the first and second quarters. Switzerland on Friday reported that growth slowed to 0.1% from 0.8%.
For those keeping score, the choice many countries have made in forgoing retaliation may count as a series of losses for them and a sequence of wins for the U.S. But those choices are also wins for the global economy, and for now a return to the tit-for-tat mayhem of the 1930s seems unlikely. That isn’t to say that the global economy hasn’t been harmed by President Trump’s fondness for taxes on imports. Far from it. But it will take some time before the impact of tariff increases that are already settled is clear, and it is likely that further increases in duties will add to the damage.
As US Imposes Tariffs, Foxconn Counters With Regional Realignment
Technology manufacturing giant Foxconn plans to develop technology parks in the U.S. and Mexico, aiming to help Taiwanese companies circumvent a newly imposed 20% tariff on imports from Taiwan, Chairman Liu Young-way announced Monday. “If customers are truly facing significant tariff pressure, we could offer a solution: using our own U.S. factories to supply them,” Liu said according to FTV News. The White House has stated that the latest round of tariffs is intended, in part, to encourage domestic manufacturing and job creation.
Foxconn’s expansion strategy is intended to give Taiwanese manufacturers an alternative to shipping goods directly to the U.S., reducing exposure to tariff-related costs. The company’s proposed technology parks will prioritize development in Texas, with future projects under consideration in Mexico and other developing nations. In June, Foxconn acquired the Fairbanks Logistics Park, a 100-acre industrial site in northwest Houston. The site, which includes four buildings totaling 1 million square feet of industrial space, was purchased from Dallas-based Dalfen Industrial. According to the Greater Houston Partnership, Foxconn is investing $450 million into the property to develop an AI server manufacturing facility. The project is expected to create 600 direct jobs and generate an estimated economic impact of $920 million.
Nvidia Said To Be Developing New, More Powerful AI Chip For Sale In China
The world’s most valuable chipmaker is far from giving up its desire to retain China as a key growth market. Nvidia is apparently putting together a new AI chip meant for sale in China that’s half as powerful as its flagship B300 Blackwell GPU, Reuters reported, citing anonymous sources. This new chip, codenamed B30A, would be more powerful than the H20 GPUs the company is currently allowed to sell to China, the report said, though its design will be single-die in nature, unlike the dual-die design used in the more powerful B300 GPUs. The B30A would still have similar features to the H20, like fast data transmission, support for NVLink, and high-bandwidth memory.
The development of the B30A seems to be separate from another chip that the company is said to be developing for sale in the country, Reuters reported. The news comes as the Trump administration in recent weeks has relaxed its stance on letting chipmakers export high-performance AI chips to China, though Reuters cited its sources as saying that approvals for this new chip aren’t certain at all. As geopolitical tensions between Beijing and Washington are increasingly affected by the race to develop AI, critics argue that the U.S. must maintain its lead by controlling the supply of necessary technology to China. But Nvidia and its peers — finding themselves selling the equivalent of shovels during a gold rush — maintain that ceding the valuable market of China to rivals like Huawei would be tantamount to giving up entirely.
Home Depot Slightly Misses Wall Street's Mark In Q2 Earnings, Reiterates Guidance
Home Depot reported second quarter earnings before the market open on Tuesday that slightly missed Wall Street's estimates. At the same time, the retail giant marked a return to consistent same-store sales growth in the US amid signs that a prolonged slump in the US housing market is starting to thaw. Revenue was $45.27 billion, versus the $45.41 billion expected, per Reuters. Adjusted earnings per share came in at $4.68, $0.04 less than the expected $4.72.
In the US, same-store sales were up 1.4%, a tick lower than the 1.6% Wall Street expected. That marks the third straight quarter of positive comps in Home Depot's home market. The company hasn't reported three consecutive quarters of US same-store sales growth since the third quarter of 2022. For the second time this year, Home Depot reiterated its annual forecast, saying it expected net sales to grow by 2.8% and same-store sales to increase by 1% for the full fiscal year.
Intel Gets $2 Billion Lifeline In The Form Of Softbank Equity Investment
Intel is getting a $2 billion capital injection from SoftBank Group in a major vote of confidence for the troubled U.S. chipmaker in the middle of a turnaround. The equity investment, announced by the companies on Monday, is a lifeline for the once-iconic U.S. firm which has struggled to compete after years of management blunders that left it with virtually no foothold in the booming artificial intelligence chip industry.
It will make SoftBank a top-10 shareholder of Intel and add to the Japanese tech investor's ambitious bet on semiconductor and AI assets that includes the $500 billion Stargate U.S. datacenter project. The deal follows media reports last week that the U.S. government may buy a stake in Intel, after a meeting between new CEO Lip-Bu Tan and President Donald Trump that was sparked by the President's demand for Tan's resignation over his ties to Chinese firms.
Deere Pledges $20B for U.S. Investments
Deere & Co., the farm equipment manufacturer more widely known as John Deere, has put forth a 10-year, $20-billion capital investment program for its U.S. manufacturing operations, with the aim of promoting the development of new products and adopting more advanced manufacturing capabilities. Like some automakers adjusting to U.S. tariff policies, Deere is working to adapt its global manufacturing strategy to minimize the financial burden. With its Q3 2025 earnings report, the company warned that import tariffs could tax its revenues by as much as $600 million for the full fiscal year.
While Deere did not itemize all of its planned capital investments, one will be a $70-million project to build a new, 380,000-sq.foot factory in Kernersville, North Carolina, for small excavator assembly. That is a product line formerly manufactured in Japan by Hitachi Ltd. Among the investments detailed by Deere in its announcement are a $199-million program at the Harvester Works in East Moline, Ill., to update manufacturing space and introduce advanced production equipment for the John Deere X9 combine. Nearby in Moline, the John Deere Seeding plant underwent a $10-million, 60,000-sq.ft expansion to improve the workspace and visitor center.
Read more at American Machinist
Tesla Drivers Can Pursue Class Action Over Self-Driving Claims, Judge Rules
Tesla (must face a certified class action by California drivers who said Elon Musk misled them for eight years about the self-driving capabilities of his company's electric vehicles. U.S. District Judge Rita Lin said the common question of whether Tesla lacked sensors to achieve high-level autonomy plus its inability to "demonstrate a long-distance autonomous drive with any of its vehicles" justified group lawsuits by two sets of drivers who bought its Full Self-Driving technology package.
In her decision on Monday, the San Francisco-based judge also said thousands of people likely saw Tesla's claim in the "Autopilot" section of its website from October 2016 to August 2024 that its vehicles contained hardware for full self-driving. Tesla made a similar claim in a blog post, newsletter and quarterly earnings call, as did Musk at a 2016 press conference. "While these channels alone may not ordinarily be enough to establish class-wide exposure for a traditional car manufacturer, Tesla's distinctive advertising strategy warrants a departure from the typical approach," Lin wrote. Tesla does not use mass advertising or independent dealers, and Lin said it was reasonable to infer that class members interested in Full Self-Driving technology went to Tesla's website to get information.
Sam Altman On GPT-6: ‘People Want Memory’
GPT-5 just launched. GPT-6 is already on the way. That’s the message OpenAI CEO Sam Altman delivered to reporters in San Francisco last week, offering a rare glimpse into the company’s evolving product road map, as well as its missteps. Altman didn’t give a release date for his company’s next artificial intelligence model, but he made clear that GPT-6 will be different and that it will arrive faster than the gap between GPT-4 and GPT-5. It won’t just respond to users but will adapt to them, and allow people to create chatbots that mirror personal tastes.
H said he sees memory as the key for making ChatGPT truly personal. It needs to remember who you are — your preferences, routines and quirks — and adapt accordingly. He said OpenAI has been working closely with psychologists to help shape the product, measuring how people feel while tracking well-being over time. The company hasn’t made that data public, but Altman indicated it might. He also said that future versions of ChatGPT would comply with a recent executive order from the Trump administration that requires AI systems used by the federal government to be ideologically neutral and customizable.