| Trump action on tariffs triggers GOP alarm: Congressional Republicans and conservative groups are expressing worry that President Trump's decision to slap hefty tariffs on imports will hurt consumers and the broader economy and lead to retaliation by major trading partners. Trump made his first hard move toward a more protectionist trade strategy Monday when he imposed significant tariffs on solar panels and washing machines. The White House's move on tariffs came up during the Senate Republican lunch Tuesday in the Capitol. Sen. Lindsey Graham (R-S.C.) said he's worried about how the tariffs will impact a new plant in Newberry, S.C., where South Korea-based Samsung Group is building washers. He fears the company could reduce investment there or slow hiring in retaliation. "It's a delicate balance between trying to get people to play by the rules and not hurting our own economy," he said. "Tariffs are things that, once you start, the other side can do it, too." The Hill's Timothy Cama and Vicki Needham report: http://bit.ly/2E8DVJq. LG to raise prices on washers, dryers after Trump tariffs: LG Electronics is planning to raise prices on some of its washer and dryer models in response to President Trump's decision this week to impose hefty new tariffs on imported washing machines. The president on Monday levied tariffs on washers made by LG and Samsung as part of an effort to help U.S. based Whirlpool. "As a result of the trade situation, we will be initiating pricing actions, which will be sent under separate cover shortly," Thomas Yoon, an executive at the South Korean manufacturer, told retailers in a memo, according to The Wall Street Journal. The company will likely raise the published retail prices on some of its laundry appliances by about $50, industry experts said, according to the Journal. "The penalties were more severe than recommended by the International Trade Commission, and we're making some adjustments," an LG spokesman told the Journal. http://bit.ly/2E9v5Lz. Dollar drops to 3-year-low after Mnuchin praises weak US currency: The U.S. dollar dropped to a three-year low on Wednesday after Treasury Secretary Steven Mnuchin praised the weakness of America's currency at the World Economic Forum in Davos earlier this week. The ICE U.S. Dollar Index, which measures the strength of the dollar against six other currencies, dropped 0.5 percent to 89.66 on Wednesday, marking the first time in three years the index has measured under 90 points. The previous low was 70.69 at the height of the U.S. financial crisis in March 2008. News of the dollar's drop in value comes just a day after Mnuchin told business leaders in Davos that a sinking dollar value "is good for us as it related to trade and opportunities." "Longer-term, the strength of the dollar is a reflection of the strength of the U.S. economy and the fact that it is and will continue to be the primary currency in terms of the reserve currency," Mnuchin said Wednesday. http://bit.ly/2E7IAeH.
White House delays Trump's budget release over shutdown: The White House is delaying the release of President Trump's budget proposal because of the three-day government shutdown over the weekend, the Office of Management and Budget (OMB) said Wednesday.
The fiscal 2019 spending blueprint -- which will be Trump's second budget request to Congress -- will now be unveiled on Feb 12. It had originally been expected in early February. "Preparing for and then implementing the recent lapse in appropriations meant that both OMB and agency staff lost several work days during an especially critical part of the budget production process," an OMB spokeswoman said. Trump's first budget request, for fiscal 2018, proposed slashing government programs and dramatically reshaping federal spending. The government has been operating under a series of short-term funding extensions since the start of fiscal 2018. In Congress, lawmakers are still haggling over the top-line spending numbers for fiscal 2018, though leadership has said a deal is close. Lawmakers need to raise the budget caps in order to avoid across-the-board spending cuts that are mandated by sequestration. http://bit.ly/2E7uBVZ. Tax law showers cash on lobby firms: Tax reform was very good to K Street. The successful Republican drive to overhaul the tax code, which consumed much of the legislative agenda in 2017, resulted in a bonanza of business for Washington's law and lobby firms. Bolstered by GOP control of Washington, lobbyists saw their business grow almost across the board last year. The quest to pass tax legislation -- a bill affecting every industry -- was a big reason why. "The biggest driver of activity in 2017 was the fact that you had a Republican White House and a GOP Congress seeking to take policy in a 180-degree different direction," said Hunter Bates, a former chief of staff to Senate Majority Leader Mitch McConnell (R-Ky.) who is now at Akin Gump Strauss Hauer & Feld. "Tax reform and regulatory reform are the two areas where that change in direction was most pronounced." The 20 largest lobbying firms took in a total of $368 million in lobbying revenue last year, a 15 percent increase over 2016, according to numbers compiled by The Hill. Individual firms saw increases in revenue ranging from modest amounts to the addition of several million extra dollars. The Hill's Megan R. Wilson breaks it down: http://bit.ly/2E5gC2U. Happy Wednesday and welcome back to Overnight Finance. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N. Dems sour on shutdown tactics: Senate Democrats say there's no appetite in their caucus for forcing another government shutdown if Republicans refuse to agree to an immigration deal by a March 5 deadline. Democratic senators who are mulling presidential bids in 2020 haven't yet entirely backed away from shutdown threats, which could help them rev up support among the party base, but other Democrats have soured on it as a tactic. Senate Democratic Whip Dick Durbin (Ill.), who vowed last week to vote against any spending bill that didn't help young immigrants facing deportation, on Tuesday waved away talk of another shutdown if the immigration talks promised by Senate Majority Leader Mitch McConnell (R-Ky.) stall next month. "We're not talking in those terms. We're talking in positive terms," Durbin said. "Moving forward with the promised procedure from Sen. McConnell." The Hill's Alexander Bolton reports: http://bit.ly/2E647UJ. Cornyn: We'll need at least one more stopgap funding bill: Sen. John Cornyn (R-Texas) warned Wednesday that Congress will need at least one additional continuing resolution, arguing Democrats are holding disaster aid and budget negotiations "hostage" over immigration. "As a result of the shutdown, the Democratic leader ... [has] guaranteed us at least two more continuing resolutions, even if the spending caps were agreed upon in the next few days," Cornyn said on the Senate floor. An aide for the No. 2 Republican senator said he meant two including the current stopgap measure: http://bit.ly/2E71Itc. Consumer bureau asks for complaints about subpoena process: The Consumer Financial Protection Bureau (CFPB) on Wednesday published a request for comment on the subpoena process it uses to investigate companies that appear to violate federal law. The CFPB is seeking suggestions and complaints over its civil investigative demands (CID) system, through which the bureau has scored documents, testimony and other information relevant to bureau enforcement probes. Acting CFPB Director Mick Mulvaney announced last week that the bureau would begin soliciting comments on the processes and procedures it uses to regulate and oversee the economy. Wednesday's request is the formal start of the process. The CFPB said Wednesday that the request is intended to "improve outcomes for both consumers and covered entities," part of Mulvaney's stated goal to use the bureau to help protect the businesses it oversees. The bureau's request asks for ways the CID system "may be updated, streamlined, or revised to better achieve the Bureau's statutory and regulatory objectives, while minimizing burdens, consistent with applicable law, and how to align the Bureau's CID processes with those of other agencies with similar authorities." http://bit.ly/2E8iVSM. Bankers praise Trump ahead of Davos speech: President Trump won high praise Wednesday from some of the most powerful bankers in the U.S. ahead of his impending trip to an elite Swiss global economic conference. Goldman Sachs CEO Lloyd Blankfein and JPMorgan Chase CEO Jamie Dimon touted Trump's impact on the economy and the coming effects of the recently passed tax-reform law in Wednesday interviews. Both said that Trump's approach to regulation and economic policy kicked an already cruising economy into another gear. Trump will speak Friday at the World Economic Forum in Davos, a yearly meeting of global business, finance and government leaders, to tout his efforts to boost the U.S. economy. He's expected to use the new corporate tax rate to pitch companies on expanding their presence in the U.S and lay out the administration's expectations for trade deals. Blankfein, who has blasted Trump's immigration policy and comments about racism, told CNBC from Davos that he "really liked" what Trump has done for the economy: http://bit.ly/2E5wZwx. Kimberly-Clark to use savings from tax cuts to pay for layoffs: Kimberly-Clark -- maker of brands such as Kleenex, Scott and Huggies -- said the savings it receives from the new tax-cut law will help them pay for a restructuring program that includes layoffs. The company said the restructuring initiative, which the company was planning to undertake regardless of the tax law's passage, will involve reducing its number of employees by about 5,000 to 5,500 people, or 12 to 13 percent of its workforce. Kimberly-Clark also said it plans to close or sell about 10 manufacturing facilities. The announcement contrasts with other businesses, such as Starbucks and Walmart, that have said that they will increase wages or issue bonuses in the wake of the tax law. President Trump signed the law in late December. Senate Minority Leader Charles Schumer (D-N.Y) highlighted Kimberly-Clark's announcement in a floor speech Wednesday as an example of "evidence that big corporations are not turning their new tax cut into jobs for the middle class." http://bit.ly/2E2MoO1. Starbucks to give raises, offer new benefits due to tax reform: Starbucks announced new raises and benefits for its employees on Wednesday, citing the corporate tax cuts in the new Republican-backed tax plan. In addition to the raises, employees at the company's coffee shop locations will receive a minimum stock grant of $500, while store managers can expect to get $2,000 stock grants. Starbucks will also provide employees with the opportunity to get accrued time off to take care of loved ones and themselves when they are sick, in addition to giving greater paternity leave to coffee shop workers. "Investing in our partners has long been our strategy, and due to the recent changes in U.S. tax law, we are able to accelerate some significant partner investments," the Seattle-based company's chief executive, Kevin Johnson, said in a letter to employees, according to Reuters. Starbucks refers to its workers as "partners." The company said it would give employees who have already gotten a pay raise in January an additional raise in April. http://bit.ly/2E7lRzj. Koch groups urge Trump to oppose gas tax increase: Groups backed by wealthy GOP donors Charles and David Koch are urging President Trump to oppose an increase in the federal gas tax, as the administration plans to push an infrastructure package this year. "Increasing the federal gas tax to fund new infrastructure projects would be the wrong approach," Americans for Prosperity and Freedom Partners said in a letter to Trump dated Tuesday. "Not only would it undermine the benefits of recent tax-cut legislation, it would disproportionately hurt the least fortunate -- who pay a higher percentage of their income in energy costs -- and lead to higher prices on goods and services throughout the economy," the groups added. The White House and lawmakers have expressed an interest in working on legislation this year to boost infrastructure investment, but the challenge is figuring out how to pay for such a package: http://bit.ly/2E5giRV. Top business, farm groups launch new coalition on trade: Powerful U.S. businesses, farmers and manufacturers are joining forces as concerns grow about the direction of the Trump administration's trade agenda. The American Farm Bureau Federation, Business Roundtable, National Association of Manufacturers and U.S. Chamber of Commerce are launching a new coalition -- Trade For America (TFA) -- that will highlight the overall benefits of global trade for the U.S. "There's a recognition that the economy is growing, jobs are being created and the stock markets are at record highs but there's enormous anxiety, particularly outside of Washington, regarding trade," said Bill Lane, executive director of TFA. "While all of these groups have their own independent trade education efforts that they've been pursuing for an extended period of time we felt it was just absolutely critical that we amplify our voice," Lane said: http://bit.ly/2E6M7Kg. | 
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