This week’s summary

• Treasury released draft regs implementing a 5-percentage-point corporate-tax cut and a retroactive full expensing provision—key pillars of OBBB. The Washington Post
• Trump announced a new round of “national-security tariffs” (10-30 %) on Canadian lumber and Thai electronics. The Washington Post
  
• A Data for Progress poll of 1,600 Hispanic voters found 57 % believe the tax cuts favor “the wealthy,” and only 29 % expect wage gains to outpace inflation. weareequis.us
  
  

Core analysis

• Inflationary feedback loop. New tariffs coincide with CPI jumping to 2.6 %, eroding real wage gains. The Guardian
• Sectoral pain. Apparel, food-processing, and electronics assembly—industries employing high shares of Hispanic/Asian workers—face margin squeezes from tariff-driven material costs. The Wall Street Journal
• Labor market resilience—but cooling. July jobs report shows overall unemployment at 4.2 %, yet Hispanic unemployment ticked up to 5.3 %. Bureau of Labor Statistics
  

Geopolitical Implication

Higher U.S. tariffs complicate trilateral talks with Mexico and Canada under USMCA review, while stalled U.S.–China negotiations risk extended 145 % duties on Chinese components. Politico Pro

Strategic implications

• Credit risk: Community-development lenders warn of rising default probabilities among Latino-owned SMEs if tariff pass-through continues.
• Political realignment: Economic anxiety is nudging working-class Hispanic men toward GOP messaging on growth despite skepticism about trickle-down benefits.

Insider Insight

House GOP whip-team aides concede they may delay the capital-gains indexation vote to avoid headlines about “handouts to investors” before the August recess town-hall circuit.

Strategic Recommendation

Import-reliant firms should expedite foreign-trade-zone (FTZ) applications and hedge FX exposures. Advocacy coalitions ought to quantify regional tariff impacts in terms of job losses to influence September’s tariff-waiver amendment debate.