President Trump announces new tariffs
On July 20, President Trump announced new 50% tariffs on specified Canadian imports under Section 338 of the Tariff Act of 1930. The tariffs will apply to a broad range of imported items, including wine, dairy products, cement, and other consumer and industrial products. According to the White House, the tariffs are intended as a response to Canada’s treatment of U.S. automobiles, alcohol and dairy products, as well as broader trade imbalances. Certain energy products and other goods covered by Section 232 tariffs are exempt from these tariffs, but the new tariffs will apply to some imported goods that otherwise would qualify for preferential treatment under the United States-Mexico-Canada Agreement. The new tariffs are scheduled to take effect Aug. 19 and could possibly be averted or modified in trade negotiations expected to be held between the U.S. and Canada during the next few weeks. View a White House Fact Sheet for more information.
President Trump also issued a proclamation that creates a new investment incentive program under the Section 232 aluminum tariff regime that is designed to encourage the expansion of U.S. aluminum production. Under this program, companies that commit to building, expanding or refurbishing U.S. aluminum smelters may import specified quantities of primary aluminum at 25%, half the normal Section 232 tariff rate of 50%. View a White House Fact Sheet for more information about this program.
In addition, President Trump is expected to soon announce other new tariffs to replace the 10% global tariffs issued in February under Section 122 of the Trade Act of 1974, which expire July 24. The Section 122 tariffs were issued as temporary measures after the Supreme Court struck down broad tariffs announced in 2025 under the International Emergency Economic Powers Act. The forthcoming tariffs are expected to be issued under Section 301 of the Trade Act of 1974, which is seen as a more durable legal authority for implementing tariffs on a sustained basis.
NRCA urges Senate to pass legislation regarding Temporary Protected Status
Given the recent Supreme Court decision that allows the Trump administration to terminate Temporary Protected Status for Haiti, Syria and indirectly other nations, NRCA sent a letter urging senators to approve H.R. 1689, legislation to direct the Department of Homeland Security to extend Temporary Protected Status for Haiti. This legislation was approved by the House in April with bipartisan support and is now pending before the Senate. The letter urges approval of H.R. 1689 as a short-term solution for individuals with TPS from Haiti and also urges approval of the Dignity Act (H.R. 4393), bipartisan immigration legislation that includes the opportunity for individuals who have worked legally under TPS from all countries to earn permanent legal status as the ultimate solution. H.R. 1689 faces an uphill battle given resistance from Senate Republicans and the crowded legislative agenda in the run-up to the midterm elections in November.
U.S. Citizenship and Immigration Services has provided an update extending the expiration date of employment authorization documents related to TPS for foreign nationals from Haiti until July 24. NRCA has urged DHS to provide additional transition assistance, and it is possible USCIS may extend this date. NRCA members that have employees with TPS should always consult legal counsel regarding the work authorization status of affected employees. Additionally, a decision regarding whether DHS will extend TPS for El Salvador, which is scheduled to expire in September, is expected soon.
House passes continuing resolution to avoid government shutdown this fall
On July 21, the House passed stopgap funding to keep the government open past the midterm elections (through Dec. 4). The continuing resolution, which passed by a vote of 220-205, will now be sent to the Senate, where the measure already is facing demands for change. Government funding is currently set to run out after Sept. 30 without congressional approval of appropriations bills for fiscal year 2027, which begins Oct. 1. House Speaker Mike Johnson (R-La.) was able to unite House Republicans in the face of opposition from Democrats, who primarily argued the bill contained a loophole that could allow the Trump administration to add more funding for immigration enforcement.
In the Senate, where none of the 12 spending bills have been passed, Democrats’ votes will be needed to pass ordinary government funding bills. Republicans want to increase overall military spending next fiscal year by 50% to $1.5 trillion while cutting funding for health care and other social services championed by Democrats. A final deal regarding the appropriations bills is not expected before the outcome of the November midterm elections is known. Therefore, there is a need for a continuing resolution to avoid any lapse of funding that would be politically damaging during election time.
Both parties in the Senate are expected to make changes to the House stopgap measure. Democrats, for example, want language inserted preventing additional funding for Immigration and Customs Enforcement and Border Patrol, as well as a halt to a proposed rule from the Office of Management and Budget that would overhaul the federal grantmaking process.
NRCA will continue to closely monitor the progress of the fiscal year 2027 appropriations process because of our steadfast support for funding of Perkins Career and Technical Education State Grants. This federal funding is critical to providing students with the resources and opportunities needed to ensure our industry has the skilled workforce necessary for the future.
Senate considers Sonderling nomination
The Senate Committee on Health, Education, Labor & Pensions held a hearing to review President Trump’s nomination of Keith Sonderling to serve as the secretary of labor. During his testimony, Sonderling said his priorities will include improving the efficiency of the department's operations; combating unemployment insurance fraud through stronger identity verification and oversight; and ensuring consistent enforcement of labor laws. NRCA supports Sonderling’s nomination and joined many other business groups in sending a coalition letter urging the committee to move forward with approval. The letter noted Sonderling “has a proven record of success managing the Department of Labor, along with extensive experience in workplace policy and public service.” Sonderling is now serving as acting secretary of labor and previously served as deputy secretary of labor under Secretary Lori Chavez-DeRemer before her resignation in April. The committee is likely to vote on Sonderling’s nomination today, and he is expected to ultimately be confirmed by the full Senate.
