Trump Trade: Megabill passes in Senate, goes back to House

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:

SENATE PASSES MEGABIIL: The U.S. Senate narrowly passed President Donald Trump’s so-called “big, beautiful bill” following days of negotiations and a long amendment session, CNBC’s Erin Doherty and Christina Wilkie report. The domestic policy package passed with a 51-50 vote, with Vice President J.D. Vance casting the tiebreaker vote, and notable Republican Senators Thom Tillis, Rand Paul, and Susan Collins breaking party lines and voting against the bill, the authors say. The House will now have to accept the Senate’s major changes to the legislation, a major task as some GOP lawmakers have since expressed worries over the package’s impact on the budget deficit, which the CBO projects will increase by at least $3T, the authors note.

AI PROVISION: The Senate killed a controversial effort to prevent U.S. states from regulating artificial intelligence, marking a loss for the Silicon Valley leaders and White House officials who pushed the measure, Bloomberg’s Emily Birnbaum, Oma Seddiq, and Steven T. Dennis report. Senators voted 99-1 early Tuesday to strip the language out of President Donald Trump’s signature tax legislation during a marathon all-night voting session. The overwhelming opposition came despite widespread support for the pause on state AI legislation from GOP allies in Silicon Valley and White House technology advisers Michael Kratsios and David Sacks. The measure was the top priority for major technology companies including Microsoft (MSFT) and Meta Platforms (META), as well as venture capital firms like Andreessen Horowitz, which back other powerful players, the authors note. Trump allies in Silicon Valley, including venture capitalist Marc Andreessen, defense tech company Anduril Industries founder Palmer Luckey and Palantir Technologies (PLTR) co-founder Joe Lonsdale all advocated for including the restriction.

TARIFFS: President Trump says he is not thinking about extending his tariff pause past July 9 and he “doubts” the U.S. will make a trade deal with Japan by that time, reported Bloomberg.

EV CUTS: President Trump said his policies are set to revive auto manufacturing in the U.S., but Republican attack on EVs could to the opposite, Jack Ewing of The New York Times reports. China already has a head start in EVs and the batteries and materials needed to product them, with companies such as BYD (BYDDF), SAIC, and Geely (GELYF) producing over 70% of the electric cars sold globally in 2024. Tesla (TSLA) is the only American company that ranks among the world’s largest 10 EV makers, with General Motors (GM) and Ford Motor (F) minor players. The budget and policy bill passed by the Senate eliminates tax credits of up to $7,500 for EV buyers and also phases out subsidies for companies that set up battery factories and lithium mines, which may endanger companies that invested to create a U.S. EV supply chain not dependent on China.

TRUMP, MUSK FEUD: After Tesla CEO Elon Musk took to X, formerly Twitter, to vent his objections to President Trump’s “big, beautiful bill,” Trump told reporters on Tuesday that “We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon,” Avery Lotz of Axios reports. When asked if he would consider deporting Musk, Trump said he didn’t know, but that “We’ll have to take a look.” “If DOGE looks at Musk, we’re going to save a fortune,” Trump added.

GAZA CEASEFIRE: President Donald Trump stated in a post to Truth Social, “My Representatives had a long and productive meeting with the Israelis today on Gaza. Israel has agreed to the necessary conditions to finalize the 60 Day CEASEFIRE, during which time we will work with all parties to end the War. The Qataris and Egyptians, who have worked very hard to help bring Peace, will deliver this final proposal. I hope, for the good of the Middle East, that Hamas takes this Deal, because it will not get better – IT WILL ONLY GET WORSE. Thank you for your attention to this matter!”

SHELVING NAVY’S F/A-XX FIGHTER: The Trump administration is shelving the U.S. Navy’s F/A-XX futuristic fighter in favor of the F-47, the Air Force counterpart, amid concerns U.S. defense contractors can’t handle both, Colin Demarest of Axios reports. The project has been in limbo for months, according to the report. Boeing (BA) and Northrop Grumman (NOC) have been in the running for F/A-XX, with the former besting Lockheed Martin (LMT) in March for the multibillion-dollar F-47 contract, via the Next Generation Air Dominance effort.

SETTLEMENT: Paramount Global (PARA, PARAA) has agreed in principle to pay $16M to settle a lawsuit with President Donald Trump over a “60 Minutes” interview with former Vice President Kamala Harris, Jessica Toonkel of The Wall Street Journal reports. The settlement will not include an apology, but it does comprise payments made to the president’s future presidential library and legal fees. The company also agreed that “60 Minutes” will release transcripts of interviews with presidential candidates in the future after they have aired.