| | | |  | | By Eli Okun | | Presented by |  | | | |  | THE CATCH-UP | | | 
Treasury Secretary Scott Bessent said he thinks the U.S. can strike deals with some countries. | Seth Wenig/AP Photo | TRADE WAR AND PEACE: Stock markets rebounded somewhat today, stabilizing the crushing slides of the last few days on fresh hopes that President Donald Trump is open to negotiating at least some trade deals. But the major indexes dipped again this afternoon. By the numbers: After a more than 1,400-point rally, the Dow was now up roughly 0.1 percent as of 1:30 p.m. The S&P 500 was down 0.4 percent, while the Nasdaq was down 0.6 percent, per the WSJ. What they’re saying: Treasury Secretary Scott Bessent said on CNBC that if other countries “come to the table with solid proposals, I think we can end up with some good deals” to reduce — though perhaps not eliminate — Trump’s levies on their products. Bessent slammed China for its retaliation against U.S. measures. And press secretary Karoline Leavitt said Trump’s 104 percent additional tariffs on China have gone into effect and will begin to be collected tomorrow, per Fox Business’ Edward Lawrence. The art of the deal: Beyond Beijing, other countries may be in more favorable positions. Trump announced that he held a “great call” with acting South Korean President Han Duck-soo, and that “we have the confines and probability of a great DEAL for both countries” spanning more than just trade issues. Trump said Seoul negotiators were heading to the U.S. (Han told CNN’s Mike Valerio, Gawon Bae, Yoonjung Seo and Jessie Yeung that he wants a deal and won’t retaliate.) Italian PM Giorgia Meloni will travel to the U.S. next week to try to work out an EU-U.S. tariff offramp, Bloomberg’s Donato Paolo Mancini reports. And Hungary said it’s been working on a bilateral deal with the U.S. for months, per Bloomberg’s Francine Lacqua. On the Hill: USTR Jamieson Greer went before the Senate Finance Committee this morning to defend the administration’s tariff approach, saying the economy is in for “drastic, overdue change.” Notably, Greer said the U.S. will not give reprieves to specific companies or products, after which the market rally abated somewhat. The message from some GOP senators was clear: Let’s make a deal. Though Republican senators said they supported Trump’s goal of bringing down other countries’ barriers, they also pressed Greer on finding an endgame and being realistic about trade deficits, per POLITICO’s Daniel Desrochers. “Whose throat do I get to choke if this proves to be wrong?” Sen. Thom Tillis (R-N.C.) asked Greer of the administration’s strategy, warning that Trump has only months to turn around Americans’ perceptions. “I hope you and the president are sensitive to companies potentially going bankrupt by these actions,” Sen. Ron Johnson (R-Wis.) said. Democrats pressed hard: “The U.S. economy has gone from the envy of the world to a laughingstock,” said Senate Finance ranking member Ron Wyden (D-Ore.). House Dems later brought up a resolution to force a House vote on ending Trump’s latest round of tariffs under a fast-track process, POLITICO’s Nick Wu reports. But Speaker Mike Johnson “has tools to sidestep the vote, and it’s not clear that Democrats will have the votes to defeat them.” Intra-administration sniping: Debate between Elon Musk and Peter Navarro, on opposite sides of trade and Tesla debates, broke into the open today as Musk called Navarro “a moron,” “dumber than a sack of bricks” and “Peter Retarrdo” on X. SCOTUS WATCH: The Supreme Court today tossed out a lower court ruling that had ordered the rehiring of more than 16,000 fired probationary employees across six federal agencies, per POLITICO’s Josh Gerstein. The justices’ order said the nonprofits that had challenged the layoffs lacked the standing to sue. Two liberals, Justices Sonia Sotomayor and Ketanji Brown Jackson, dissented. But it’s not clear what the immediate effect will be, because a broader block on many of these firings from a different judge remains in place. LANDMARK CHANGE: “I.R.S. Agrees to Share Migrants’ Tax Information with ICE,” by NYT’s Andrew Duehren: “ICE officials can ask the I.R.S. for information about people who have been ordered to leave the United States — or whom they are otherwise investigating. … I.R.S. officials have for weeks warned that the Trump administration’s plan to use the I.R.S. to help with deportations could be illegal.” Good Tuesday afternoon. Thanks for reading Playbook PM. Drop me a line at eokun@politico.com.
| | | | A message from Comcast: Universal Epic Universe, the most technologically advanced theme park Comcast has built in the United States, is creating more American jobs and stimulating economic growth across the nation. Learn more about Comcast's multibillion dollar investment in the U.S. with the upcoming opening of Epic Universe. | | | | | | 9 THINGS YOU NEED TO KNOW | | 1. 2026 WATCH: Former New Hampshire Gov. Chris Sununu told the Pulse of New Hampshire that he will not run for Senate, a setback for Republicans’ hopes to flip the open seat. Sununu had been considered a top recruiting goal for the Senate GOP, but he said the commitment wouldn’t be right for his family. Former Sen. Scott Brown, who’s been hinting at a bid, may now be the GOP frontrunner; he lost a 2014 race for this seat by 3 points. Race for the House: The DCCC announced its initial set of target seats to flip, a bullish list of districts that stretch deep into Trump +15 territory, POLITICO’s Ally Mutnick reports. Sensing that the midterms could tilt in their favor in light of recent election results, Democrats are stretching beyond the usual battlegrounds. On the GOP side, Trump’s speech tonight is expected to help raise $10 million for the NRCC, Fox News’ Paul Steinhauser scooped. And Republican Mary Jo Guinchard announced that she’ll run again for Rep. Josh Gottheimer’s (D-N.J.) seat, per the New Jersey Globe. Though she lost last year, the seat could open up depending on the outcome of Gottheimer’s gubernatorial bid. Race for the states: The Michael Bloomberg-backed Everytown for Gun Safety is committing $10 million to bolster Democrats in state AG races, NYT’s Reid Epstein reports. Their focus will be on protecting the rule of law and defending states from the Trump administration. 2. PAGING MARK RUTTE: “Pentagon considering proposal to cut thousands of troops from Europe, officials say,” by NBC’s Gordon Lubold, Dan De Luce and Courtney Kube: “Senior Defense Department officials are considering a proposal to withdraw as many as 10,000 troops from Eastern Europe, sparking concern on both continents that it would embolden Russian President Vladimir Putin … The units under consideration are part of the 20,000 personnel the Biden administration deployed in 2022.” Following the report, Gen. Christopher Cavoli, the head of U.S. European Command, told lawmakers he thinks the troops should remain, per POLITICO’s Connor O’Brien. 3. IN THE DOGE HOUSE: The Department of Government Efficiency is using Musk’s Grok AI to monitor communications by EPA employees for opposition to Trump or Musk, Reuters’ Alexandra Ulmer, Marisa Taylor, Jeffrey Dastin and Alexandra Alper scooped. That surveillance “would mark an extraordinary use of technology to identify expressions of perceived disloyalty.” DOGE is also using Signal for its communications, raising questions about whether it is preserving its records. 4. RECONCILABLE DIFFERENCES: House Republicans, including some budget holdouts, are meeting with Trump at the White House this afternoon as Johnson tries to get his conference on board with the Senate’s blueprint, POLITICO’s Meredith Lee Hill and Benjamin Guggenheim report. House Majority Whip Tom Emmer is also bringing in Bessent today to talk about tax policy plans, per Punchbowl’s Jake Sherman. But but but: House Freedom Caucus Chair Andy Harris (R-Md.) said he wouldn’t attend the White House meeting because he couldn’t be moved, per Benjamin and Meredith. And it remains an open question whether the House Rules Committee will meet today to tee up floor consideration of the Senate resolution.
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From 2019-2023, Universal Orlando generated $44 billion in economic impact for the nation. Learn more. | | | | 5. TALES FROM THE CRYPTO: “Justice Dept. says it will pull back on litigating cryptocurrency fraud,” by WaPo’s Perry Stein, Cat Zakrzewski and Carol Leonnig: It’s “the latest example of the Trump administration pulling back on white-collar crime enforcement. … Deputy Attorney General Todd Blanche said the department will no longer participate in regulation in the digital asset space and will instead focus on crimes that people commit with cryptocurrency, such as dealing narcotics and human trafficking.” 6. SOUTH OF THE BORDER: The Trump administration is in early discussions about striking Mexican drug cartels with drones, though no decisions have been made, NBC’s Dan De Luce, Ken Dilanian and Courtney Kube scooped. The attacks could take place in conjunction with the Mexican government, though taking unilateral action without Mexico City is still on the table as a potential last resort. 7. IRAN LATEST: “Trump envoy Witkoff to lead high-stakes nuclear negotiations with Iran,” by Axios’ Barak Ravid: “Steve Witkoff will lead the U.S. delegation for nuclear talks with Iran on Saturday in Oman … Trump threatened to strike Iran, but he aligns more with the dovish camp that favors a diplomatic solution. Witkoff and Vice President [JD] Vance also believe a deal with Iran is possible and preferable.” Another boost for the new MAGA foreign policy wing: The Senate confirmed Elbridge Colby as undersecretary of Defense for policy, 54-45, per POLITICO’s Connor O’Brien. He picked up three Democrats and lost Sen. Mitch McConnell (R-Ky.). 8. IMMIGRATION FILES: At least some legal immigrants who have entered the U.S. via the CBP One app in the past two years were sent a message urging them to leave the country as the Trump administration cancels their parole authorization, AP’s Valerie Gonzalez reports. And the administration plans to again start enforcing a law to fine people with deportation orders nearly $1,000 a day if they stay in the country, per Reuters’ Ted Hesson and Kristina Cooke. At the same time, FEMA has told NYC it must return another $106 million in grants for supporting migrants, per NYT’s Jeffery Mays. Mayor Eric Adams previewed a lawsuit over it. Investigation on the ground: “Border Patrol said it targeted known criminals in Kern County. But it had no record on 77 of 78 arrestees,” by Sergio Olmos and Wendy Fry for CalMatters, Evident and Bellingcat 9. WAR REPORT: “The Other Side of Signalgate,” by Rozina Ali in The New Yorker: “Less has been made of the strikes themselves, which raise their own set of questions, including what the U.S.’s aims are in Yemen, and under what legal authority it is pursuing those aims. … One of the attacks hit a cancer-treatment center that was under construction, according to Houthi authorities. Another, the Roga’ah house … [where] rescuers who dug through the rubble counted fifteen dead, all women and children. … The New Yorker was not able to fully corroborate [this] account.”
| | | | Cut through policy complexity and turn intelligence into action with POLITICO’s Policy Intelligence Assistant—a new suite of tools designed to save you time and demonstrate your impact more easily than ever—available only to Pro subscribers. Save hours, uncover critical insights instantly, and stay ahead of the next big shift. Power your strategy today—learn more. | | | | | | | TALK OF THE TOWN | | Donald Norcross has been transferred to a New Jersey hospital and is in intensive care but “stable” and “improving,” his office said. Dan Bongino is getting a sizable bodyguard security detail, unusual for an FBI deputy director. Simon Ateba’s challenge to his denial of a White House “hard pass” was rejected in court. Andrea Mitchell and “Saturday Night Live” will receive special Peabody Awards at this year’s ceremony. FUN ONE — “The People Running the Government Are Letting It All Hang Out on Venmo,” by NOTUS’ Mark Alfred BOOK CLUB — Former Sen. Joe Manchin (I-W.Va.) is writing a memoir, “Dead Center: In Defense of Common Sense,” per the AP. It’ll come out Sept. 16 from St. Martin’s Press, a self-described “declaration of independence from the extremes on both sides.” MEDIA MOVES — Madeleine Haeringer is joining MSNBC as SVP of digital, audio and longform. She most recently was EVP and general manager of Crooked Media, and is an NBC News alum. … Allison Brennan is now talent booker for Substack’s news and politics team. She previously was an editorial producer at CBS News. TRANSITIONS — Micah Bock is now deputy assistant secretary for strategic comms at DHS. He previously was deputy chief of staff and comms director for Rep. Lance Gooden (R-Texas). … Bri Gillis is now campaign adviser for 3.14 Action. She previously was VP for political at the National Immigration Law Center. … Dave Vasquez is now comms adviser for the Senate Armed Services Committee. He most recently was at DCI Group, and is a Ted Cruz and Pentagon alum. … … Cole Wozniak is joining Illinois Lt. Gov. Juliana Stratton’s office as press secretary. He previously was a comms associate on the Harris campaign. … Nathanael Andrews is joining the Software & Information Industry Association as senior associate counsel. He previously was an associate at Perkins Coie. Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn’t happen without our deputy editor Zack Stanton and Playbook Daily Briefing producer Callan Tansill-Suddath. | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our politics and policy newsletters | | Follow us | | | |
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