Spiegel Stuff: The Hill's Morning Report — A reckoning for Trump’s bedrock issues | Pompeo in the hot seat on Russia | Deadline day for reuniting families separated at the border | Trump, EU tout trade pact amid GOP frustration over tariffs war | House conservatives move to impeach Rosenstein | White House delays proposed Putin visit | Cohen has more recordings of Trump

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Some of President Trump’s most controversial policies are undergoing extreme stress-testing this week by Congress, the courts and longtime allies, setting up a crucial stretch that will shape the contours of debate heading into the 2018 midterm elections.

The president’s bedrock issues are at stake this week:

> Today is the court-ordered deadline for the administration to reunite the thousands of children who were separated from their parents at the border because of Trump’s “zero tolerance” policy. The administration will not be done reuniting the estimated 2,551 families that were impacted, although a federal judge has praised their progress. Still, the “zero tolerance” policy will remain a political disaster for the administration until all of the children are reunited with their parents. Next up, potentially as early as Friday, a judge will consider when the administration can begin deporting the reunited families.

The San Diego Union-Tribune: What’s next for family reunifications.

The Associated Press: Clock ticks toward reuniting families separated at the border.

> Senate Republicans are furious with Trump over his tariffs. The president badly needs a win here to stem the tide of criticism after the administration announced $12 billion in subsidies to farmers to buffer against losses suffered from Trump’s escalating trade war. The president may have gotten what he needed on Wednesday, announcing at a Rose Garden ceremony with European Commission President Jean-Claude Juncker that the two had reached a deal to resolve the trade dispute. The stock market spiked on the news. The details of the deal are still murky, but it might cool some of the heat Trump has taken from his own party in recent days.

The Wall Street Journal: U.S., European Union (EU) agree to resolve tariffs on steel, aluminum.

> Secretary of State Mike Pompeo defended the administration’s posture toward Russia at a tense grilling in front of the Senate Foreign Relations Committee on Wednesday. This controversy — sparked by Trump’s refusal to confront Russian President Vladimir Putin over election interference — shows no sign of abating, as lawmakers consider new sanctions and question the president’s motives for seeking an alliance with the Eastern power. An urgency among Republicans to address Russia is taking up all the time and energy on Capitol Hill with just more than three months to go before the midterm elections.

The lobbying group CGCN had this to say in a memo sent to clients on Wednesday:

“President Trump has fully bucked the traditional concept of building a political coalition to support his policy agenda. His base strategy is evident in the items he’s advanced to this point in his presidency. His base has rewarded him with a near-record high approval rating in return, even as beltway commentators constantly question his strategy and his unconventional approach. Policymakers, advocates, and Washington insiders must come to terms with Trump’s mindset if they want to have any hope of successfully convincing the president to shift course.” - CGCN

The backdrop to these brutal policy fights is the crush of investigations, from special counsel Robert Mueller’s probe to Trump’s suddenly public feud with his former attorney, Michael Cohen.

Cohen, who is being investigated by the FBI, once said he’d take a bullet for Trump. Now, his attorney is releasing embarrassing audio of Trump and Cohen discussing a potential payment to kill a story about a former Playboy model who claims to have had an affair with Trump. The FBI has that recording and 11 others that are said to involve the president in some way.

For those tracking these issues closely, there’s more ...

LEADING THE DAY

*** BREAKING LAST NIGHT *** House conservatives have introduced articles of impeachment against Deputy Attorney General Rod Rosenstein, who is overseeing Mueller’s probe (The Hill) … House Freedom Caucus Chairman Mark Meadows (R-N.C.) is threatening to force a vote (The Hill) … it’s the culmination of months of frustration from Trump’s allies in Congress, who believe Rosenstein has allowed Mueller’s investigation to run too far afield.

****

RUSSIA: The White House announced Wednesday that Trump’s invitation to Putin to visit Washington in the fall has been postponed until next year, “after the Russia witch hunt is over,” according to national security adviser John Bolton.

Trump’s eagerness for a follow-up summit with Putin acted as fuel on a fire that has been burning hot for the 10 days since the two leaders met in Helsinki.

Pompeo was left to stomp out those fires on Wednesday, as he squared off against angry lawmakers from both sides of the aisle eager to get to the bottom of what Trump and Putin discussed in their more than two-hour face-to-face meeting.

The Hill: Pompeo spars with senators at testy hearing.

The New York Times: Pompeo defends Trump with “proof” of administration’s actions vs. Russia.

Pompeo didn’t give much away about what Trump and Putin discussed, but he insisted that U.S. policy toward Russia has not changed dramatically since the summit. When pressed on why he wouldn’t give specifics of the conversation, Pompeo shot back:

“I told you what U.S. policy is … it’s what matters.” – Pompeo

Instead, the secretary of State sought to highlight instances where the U.S. has been tough on Russia under Trump:

> The secretary said the U.S. will never recognize Russia's annexation of Crimea and he called on Moscow to "end its occupation" of the territory. The comments are the Trump administration's most explicit rebuke of Russia's claim on Crimea to date. Pompeo also noted that the U.S. has provided weapons and hundreds of millions of dollars for security to Ukraine.

> Pompeo said the U.S. under Trump sanctioned more than 200 Russian individuals or entities and expelled 60 Russian spies, while closing a Russian consulate in San Francisco and cutting Russian diplomatic staff by almost 70 percent.

> Pompeo said the U.S. continues military exercises in Europe and has budgeted to give billions of dollars to the European Defense Initiative.

> Pompeo insisted to skeptical lawmakers that Trump accepts the intelligence community’s findings on Russia’s election interference. “He has a complete and proper understanding of what happened.” Trump, he said, also has enormous respect for law enforcement and the intelligence apparatus.

Many lawmakers, including members of the president’s party, say they are dubious.

“[Senators are] filled with serious doubts about this White House and its conduct of American foreign policy.” – Senate Foreign Relations Committee Chairman Bob Corker (R-Tenn.)

> NPR/Marist Poll: Americans don’t think Trump is tough enough on Russia.

> The Hill: Obstacles mount for quick action on Russia sanctions.

****

TRADE: In trade terms, the United States and Europe on Wednesday declared a ceasefire, embracing potential concessions on both sides of the Atlantic to avert an escalating exchange of punishing tariffs (The Hill).

The president and Juncker said the United States and the EU would begin negotiating toward a goal of “zero tariffs” on industrial goods and further cooperation on energy issues (CNBC).

In the Rose Garden with his European guest, Trump said the administration would negotiate toward zero tariffs, elimination of non-tariff barriers and no subsidies for non-auto industrial goods.

Juncker said the EU would hold off on new tariffs and reassess existing tariffs on steel and aluminum as long as negotiations were ongoing with the United States. The news sent Wall Street stocks higher.

The leaders’ joint announcement came hours after a newspaper account that Trump was keen to levy 25 percent tariffs on close to $200 billion in foreign-made automobiles later this year, despite pushback from his advisers (The Washington Post).

The EU reportedly has agreed to import more U.S. soybeans – a pledge that emerged one day after the Trump administration announced $12 billion in emergency federal subsidies to farmers to offset the ping-pong of tariffs that have hurt agriculture sales and prices this year.

“If we could have no tariffs, and no barriers, and no subsidies, the United States would be extremely pleased,” Trump said.

The president capped a morning of tweeting about trade with a discussion at the White House with 13 Republican lawmakers concerned about the administration’s tariffs policies and agriculture. Trump will be in the Midwest today to promote his “reciprocal trade” ideas and U.S. manufacturing.

U.S. Trade Representative Robert Lighthizer will also appear before a Senate panel today, where he’ll be asked to provide more details.

> The Hill: Stakeholder groups are blasting the administration’s plan to offer emergency payouts to farmers.

> Politico: Trump tariffs tear Republicans apart.

> The Hill: News coverage around the country about the administration’s tariffs is intensely local, and mostly dire.

> The Hill: Trump’s budget director, Mick Mulvaney, a former member of Congress, pleaded for patience with the administration’s trade policy.

Trump began his day with tweets aimed at “weak” politicians, who the president argues fail to appreciate his strategy to try to land favorable deals with U.S. trading partners, including Europe, Mexico, Canada and China.

Hearing about the U.S.-EU negotiations announced by Trump, Indiana Republican Sen. Todd Young told the secretary of State with evident relief in his voice, “I can’t tell you how energized I am by this.”

IN FOCUS/SHARP TAKES

➔ WHITE HOUSE: The president put Cohen, his former personal attorney, on notice Wednesday that audiotaping him as a client in 2016 — and then releasing one of a reported dozen recordings to CNN on Tuesday — was deeply unwelcome in the West Wing (The Hill).

The Hill’s Jordan Fabian reports the Cohen drama compounds Trump’s array of ongoing challenges, from policy to politics to Putin. A dizzying cast of characters, investigations and Trump pre-election decisions dominate news and social media, and will do so throughout the year.

The Washington Post reports the government has seized more than 100 recordings that Cohen made surreptitiously with people, including some journalists, discussing matters that could relate to Trump and his businesses. The recordings include additional conversations in which Trump is heard speaking.

In the brief audio released to CNN, Trump and Cohen can be heard discussing a potential payment to American Media, Inc. to buy the rights to a story in which a former Playboy model alleges she had an affair with Trump.

But The Wall Street Journal reported the Justice Department is probing whether the tabloid publisher acted more like an extension of Trump and his campaign than a news operation. American Media’s president and CEO, David Pecker, is a Trump friend. The Manhattan U.S. attorney’s office gathered information from him and the company in the spring.

CNN: Who is David Pecker?

➔ POLITICS & CAMPAIGNS: Trump travels to Dubuque, Iowa, today to talk about workforce development and to sell his trade policies to farmers. The county he’ll visit is an interesting case study, having swung wildly from supporting former President Obama in 2012 to backing Trump in 2016. Was it an aberration or is Dubuque County now Trump country?

The Des Moines Register: As Trump visits Iowa, he’ll find dramatically altered Dubuque County landscape.

Trump will also visit Granite City, Ill., where he’ll celebrate with U.S. Steel workers, many of whom credit the administration’s policies for bringing jobs back to a factory.

The Associated Press: Trump touts trade win in Illinois steel town as others lose.

> A new Quinnipiac University survey puts the Democratic advantage in the generic congressional ballot at 12 points over Republicans.

That would signify big gains by Democrats, who need to win 23 seats to take control of the House.

The Hill’s Reid Wilson and Lisa Hagen have your 2018 status report with just over 100 days to go until Nov. 6 (The Hill). The bottom line: Republicans admit Democrats have the upper hand. Democrats are nervous they’ll blow it. Trump looms large over the campaign.

> Meanwhile, lawmakers in the House are scrambling to position themselves for high-stakes leadership elections amid uncertainty over who will be in the majority.

House Majority Leader Kevin McCarthy (R-Calif.) and House Majority Whip Steve Scalise (R-La.) are the front-runners on the GOP side. The California congressman makes no bones about his ambitions (The Hill).

“I want it to be me.” – McCarthy

On the other side, House Democrats have pushed their leadership elections until early December (Politico). House Minority Leader Nancy Pelosi (D-Calif.) plans to run for Speaker if her party is in the majority. But about two dozen Democrats have already said they’ll vote against her and there is a lot of momentum on the left for new blood in leadership positions.

More from the campaign trail … Trump will headline a reelection rally in Tampa next week, but Florida Gov. Rick Scott (R), who is running for Senate, will not attend (Tampa Bay Times) … The Trump campaign says the president will travel to Wilkes-Barre, Pa., on Aug. 2, to hold his sixth rally in the area since 2015 … Could Rep. Michael Capuano (D-Mass.) be the next incumbent to fall to a young progressive female candidate? (The Hill) … Former Attorney General Eric Holder will campaign for Democratic candidates in Ohio today and tomorrow as he readies for a potential 2020 presidential bid.

OPINION

Broken farm subsidy system hurts more than it helps, by Roger Johnson, opinion contributor with The Hill. https://bit.ly/2NM0WVU

Succession planning, capital needed for next generation of farmers, ag leaders, by Bruce Rastetter, Iowa View contributor, Des Moines Register. https://dmreg.co/2LJoqxS

WHERE AND WHEN

The House convenes at 9 a.m. and will consider the final House-Senate version of the National Defense Authorization Act for fiscal 2019. Last votes are expected midday.

The Senate meets at 9:30 a.m. and continues debating a package of spending measures. U.S. Trade Representative Lighthizer appears before a Senate Appropriations subcommittee at 9:45 a.m. The Finance Committee holds a confirmation hearing for Justin Muzinich, counselor to Treasury Secretary Steven Mnuchin, to be deputy secretary at the department.

The president travels today to Dubuque, Iowa (two weeks after Vice President Pence stopped in Cedar Rapids). Trump is expected to talk about workforce development, trade and mention American agriculture during an event at Northeast Iowa Community College. The president will also visit Granite City, Ill., to speak at U.S. Steel Co.'s Granite City Works.

The vice president speaks this morning at the State Department during a three-day conference of global representatives focused on religious freedom. Pence will meet with survivors of persecution, and then with the family of North Carolina Pastor Andrew Brunson, currently held under house arrest in Turkey and on trial for espionage charges. Later, the vice president travels to Wheeling, W.Va., to promote federal tax cuts and headline a separate fundraiser for the National Republican Senatorial Committee.

The federal Commission on School Safety meets this afternoon in the White House Eisenhower Executive Office Building to discuss the value of school resource officers, increased information sharing and best practices. Attorney General Jeff Sessions, Education Secretary Betsy DeVos, Health and Human Services Secretary Alex Azar and Homeland Security Secretary Kirstjen Nielsen are expected to participate.

ELSEWHERE

> Trump’s Medicare chief says “Medicare for all,” a health care proposal to cover all Americans and promoted by Sen. Bernie Sanders (I-Vt.), would undermine care for seniors (The Associated Press).

> Gloria: The spy who drove me (GQ)

> Facebook stock down 8 percent following second-quarter revenue miss, slowing user growth (Variety). Reuters reports the drop was 7 percent after the bell. Twitter is also under fire this morning over a report that the website is limiting the visibility – or “shadow banning” – prominent Republicans, including Republican National Committee Chairwoman Ronna McDaniel (Vice).

> Scientists find watery lake on Mars, raising the potential for alien life (The New York Times).

THE CLOSER

And finally … we bring you the Morning Report’s weekly QUIZ CONTEST. Send your best guesses to jeasley@thehill.com or asimendinger@thehill.com to win some newsletter fame in Friday’s report. (Please put “Quiz” in your subject line.)

Last week, we tested your smarts about Air Force One. This week, let’s turn to the presidential limousine. Answer all six questions correctly.

Everyone knows the presidential limousine is nicknamed “the Beast.” That moniker came from A) Former President George W. Bush; B) a Department of Homeland Security national write-in contest; C) the Secret Service.

The armored limo is said to weigh A) one ton; B) two to three tons; C) five to 10 tons. (The exact figure is secret.)

The fortified doors are A) eight inches thick; B) without keyholes; C) have windows that do not open (except on the driver’s side); D) all of the above.

The badge on the front grille brands the president’s vehicle to A) General Motors; B) Ford; C) Cadillac.

The trunk of the limo holds A) missile launchers; B) chilled pints of the president’s blood type; C) golf clubs.

Russian President Putin showed off his new limo last week at the Helsinki summit. Compared with the U.S. version, we know that Putin’s tank-like ride is A) longer in length; B) not black; C) built with a hybrid-fuel engine.

The Morning Report is created by journalists Jonathan Easley jeasley@thehill.com & Alexis Simendinger asimendinger@thehill.com. Suggestions? Tips? We want to hear from you! Share The Hill’s reporting and newsletters, and encourage others to SUBSCRIBE!