Jamieson Greer, the U.S. trade representative, told Congress on Wednesday that a “national emergency” on trade persisted and that the administration remained intent on using tariffs to transform the economy.

The Trump administration is preparing to introduce another barrage of global tariffs as soon as this week, as the president tries to replace tariffs that were invalidated in February by the Supreme Court.

Testifying before the Senate Finance Committee on Wednesday, Mr. Greer said he considered President Trump’s tariff policy a success and would use whatever tools he had available to continue it.

“The specific authorities this administration is using have changed, but the trade strategy has not,” Mr. Greer said. “We are committed to continuing to use tariffs and to negotiate deals to support the reindustrialization of our economy, protect American workers and increase their wages and shrink our trade deficit.”

The Supreme Court in February ruled that Mr. Trump’s use of an international emergency to issue global tariffs last year was unlawful. The decision struck down tariffs Mr. Trump had announced last year on what he called “Liberation Day,” and cast into question the trade deals the administration had negotiated based on those levies. As a stopgap measure, Mr. Trump used another legal measure to impose a flat 10 percent tariff globally. But that tariff is set to expire on Friday.

The administration has already readied a replacement. In June, the Office of the United States Trade Representative proposed imposing a tariff of between 10 and 12.5 percent on goods from more than 80 countries, using a legal authority known as Section 301. It argued that those countries’ failure to impose and enforce laws blocking goods made with forced labor from their markets had unfairly disadvantaged the United States.

The Trump administration is preparing another tranche of tariffs under Section 301 that relates to other countries’ practices toward their factory sectors.

The administration has continued to double down on other tariffs as well. Mr. Trump on Monday signed orders to impose a 50 percent tariff on a wide range of Canadian goods, claiming that Canada had discriminated against the United States in key industries. He said on Tuesday that the United States would impose steep tariffs on generic medications in 2028.

Some analysts speculated that Mr. Trump was trying to force Canada to the negotiating table in talks over the United States-Mexico-Canada Agreement. U.S. and Mexican officials are discussing that deal in Mexico City this week, but talks between the United States and Canada have not officially begun.

On Wednesday, several Republican senators reiterated the importance of the U.S.M.C.A. deal to their states, while Democrats denounced the Trump administration for treating close allies like Canada so harshly.

Ron Wyden, the top Democrat on the Senate Finance Committee, criticized the administration for placing 50 percent tariffs on some Canadian products while rolling “out the red carpet” for China, “one of the biggest trade cheats there is.”

“It just seems to me that on tariffs, the administration has lost the plot,” he said.

Andrew here. For years, Warren Buffett has warned that the proliferation of nuclear weapons represents “the great problem of mankind.” The news that the U.S. has agreed to a broad nuclear agreement with Saudi Arabia is likely to cause consternation in Omaha. It should also prompt the rest of the world to consider the implications.

Buffett once said, “We can’t put the genie back in the bottle — but we can keep that genie contained.” The deal will likely mean billions of dollars for U.S. companies, but lawmakers in the U.S. and in Israel are raising questions.

One other issue to consider: Buffett recently said that A.I. may represent as big of a risk as nuclear weapons. Now think of the combined risk, in light of OpenAI’s admission on Tuesday that two of its models broke out of their “sandbox” and hacked another company to cheat on a test. More below.

New carrots and sticks

Trade is back on President Trump’s agenda, with new threats against Canada on billions of dollars’ worth of goods, and a major nuclear accord with Saudi Arabia.

The moves reflect a return to the Trump administration’s approach of carrots for favored allies and threats of stiff tariffs to intimidate others into acquiescence. But many of the administration’s moves carry big risks, experts say.

Example A: Saudi Arabia. The administration is expected to announce on Wednesday a broad accord that could let the Middle Eastern country eventually enrich its own uranium, according to The Times and others.

The long-discussed proposal — initially broached during the first Trump administration — is meant to tighten ties with the Saudis as the war with Iran has strained relations. But it’s also expected to give U.S. nuclear companies, including Westinghouse, billions of dollars worth of contracts.

More money could come if, after the conclusion of a two-year study, Washington allows Riyadh to enrich nuclear material on Saudi soil. Americans would build an enrichment facility for the Saudis under a “black box” arrangement that wouldn’t transfer sensitive technology to the Gulf state, according to The Wall Street Journal.

Example B: generic drugs. Makers of generic pharmaceuticals must onshore their manufacturing to the U.S. within two years, or face a 100 percent tariff starting in 2028, President Trump wrote on Truth Social on Tuesday. (It would go up to 200 percent in 2029.)

Analysts warn that the threat could push up treatment costs for millions of Americans, instead of fulfilling Trump’s promise of lower drug costs.

Example C: Canada. Polling suggests that Canadians are willing to support Prime Minister Mark Carney in fighting back hard against Trump’s threatened 50 percent tariffs on an array of Canadian goods, set to take effect next month.

• One thing to watch: whether the courts uphold the Trump administration’s use of a provision within the Tariff Act of 1930, known as Section 338, to justify the Canadian tariffs.

Example D: more tariffs. The administration is set to impose new duties on dozens of trading partners by Friday to replace a set of 10 percent tariffs, imposed under a 1974 law, that are set to expire this week, according to Bloomberg.

HERE’S WHAT’S HAPPENING

Oil rises to a five-week high. Brent crude, the international benchmark, is trading above $94, after Secretary of State Marco Rubio said that Iran was “not serious” about peace talks. Goldman Sachs analysts warned that Brent could surpass $120 a barrel if the Strait of Hormuz remained disrupted.

Congressional Democrats press a major law firm over its settlement with the White House. The lawmakers demanded documents from Skadden, Arps, Slate, Meagher & Flom about the agreement, in which the firm pledged $100 million worth of pro bono work for causes Trump favors in exchange for heading off a potentially crippling executive order. Skadden and eight other firms remain under scrutiny over their deals with Trump.

Bill Gates was warned about working with Jeffrey Epstein, a review by the Gates Foundation finds. Staffers at the organization “on multiple occasions” told the billionaire about the risks of associating with the convicted sex offender, according to a summary of an external inquiry conducted for the foundation. The report concluded that the foundation had no role in crimes by Epstein.

Bessent warns about “I.P. theft”

Here are the artificial intelligence headlines moving markets.

“Distillation” in focus: Treasury Secretary Scott Bessent warned that the Trump administration would look into whether advanced new Chinese models had been “distilled” — read: stolen — from American ones, and would “sanction” those that engaged in “I.P. theft.” (CNBC)

Speaking of Washington, OpenAI and Anthropic increased their federal lobbying spending to $3.17 million in the second quarter, up 23 percent from the previous quarter. (CNBC)

Meanwhile, Moonshot AI (whose new Kimi K3 model appears to largely keep up with high-end U.S. rivals) is reportedly in talks to raise a pre-I.P.O. round of capital at a valuation of up to $50 billion, up 58 percent from its current level. (Bloomberg)

Google’s latest salvo: The tech giant released three new A.I. models on Tuesday, including Gemini 3.6 Flash, its most powerful, and another one designed for cybersecurity, as it tries to catch up to OpenAI and Anthropic. But it stayed mum on a release date for its Gemini 3.5 Pro model, which has reportedly been falling short of internal goals. (NYT, Bloomberg)

Safety worries: OpenAI said that two of its models went rogue and hacked Hugging Face, an A.I. platform, in what it called an “unprecedented cyber incident.” (NYT, Hugging Face, OpenAI)

And here’s a report on how the Fed convened major bank C.E.O.s to warn them of the dangers posed by Anthropic’s Mythos model — but couldn’t get access to the tool for at least three months. (CNBC)

The A.I. revolving door: OpenAI named two bank C.E.O.s — Robin Vince of Bank of New York Mellon and David Vélez of Nubank — to the boards of its for-profit and nonprofit entities. (Bloomberg)

Trump Jr.’s investment firm is booming

President Trump’s return to the White House has been extremely lucrative for him and his family members. In the first year of his second term, the president earned at least $2.2 billion, according to a recent financial disclosure report.

His eldest son has been on a tear, too. A fledgling investment firm run by Donald Trump Jr. and a partner, Omeed Malik, a former banker and a Democrat turned Trump donor, has produced remarkable returns in a short period of time.

The firm, 1789 Capital, has cashed in on the policies of the current administration openly and without apology, Maureen Farrell reports for The Times:

Just two years ago, 1789 managed a few hundred million dollars. It now oversees more than $3 billion. Its main investment fund generated returns of roughly 200 percent as of June 30, according to a person familiar with the firm’s performance. While still early in its investment cycle, those returns eclipse the average returns of about 21 percent from venture capital firms started in 2023, according to PitchBook, a provider of financial data.

Trump Jr. and Malik have positioned their investments to benefit from White House policies. That includes stakes in companies with large government contracts, and others that have benefited directly from new policies or rollbacks of existing laws.

1789 Capital’s bets have included:

• Shares in some of the most coveted private companies before many went public, including SpaceX, Anduril, Cerebras and Reflection AI, often secured by leveraging their political and business connections.

• The prediction market Polymarket, which was worth $300 million when 1789 invested. After a federal regulator granted the company an operating license in the U.S., its valuation ballooned to $15 billion.

• Vulcan Elements, a rare earths magnet manufacturer, then valued at about $200 million. A few months later, the company landed a $620 million loan commitment from the Pentagon. The company is now worth $2 billion.

There are few rules for relatives of the president. Trump Jr. said that, as a private citizen, he was free to invest however he wanted and has done nothing illegal. He said he only talks to his father “every few weeks” and they never discuss business.

But the rise of 1789 Capital has raised eyebrows, Farrell writes:

Angela Lee, a venture capital professor at Columbia Business School, said she’s never seen a firm started by first-time fund managers raise so much money. “Any way you cut it, it’s unprecedented,” she said. One plausible explanation for the firm’s rapid success, she said: “People are paying for proximity to power.”

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Kalshi’s midterm elections play

Kalshi shot to popularity during the 2024 elections as a way to divine the state of the race.

Now the prediction market has unveiled what it calls the Midterms Hub, a section of its website featuring real-time data — including odds from its own platform — on how elections are leaning.

The effort by Kalshi underscores the site’s growing role in modern politics, but comes as the company continues to face criticism over allowing people to bet on election outcomes, Michael de la Merced and Lauren McCarthy write.

What’s happening: The Midterms Hub will feature odds for races calculated from bets placed on the Kalshi platform, as well as the company’s American Power Index, a real-time measure of which party really controls Washington.

It will also feature poll results, fund-raising data and news. “We want it to be a one-stop shop for getting everything you need to get smart about elections,” Tarek Mansour, a Kalshi founder and its C.E.O., told DealBook.

He added that among the most avid existing consumers of Kalshi’s political odds readouts were politicians and their campaign managers.

What Mansour argues the Midterms Hub isn’t about: It’s not necessarily about converting more visitors into actual bettors. (About 75 percent of all people who visit Kalshi are there just to check the odds of races, sports games and more, according to the company.)

“Our growth has been staggering, so I don’t think this dashboard is necessary” to improve it, Mansour said. For context: Total wagers on prediction markets topped $50 billion for the first time in June, thanks in part to the World Cup, up from $2 billion a year ago.

It’s also not necessarily about proving that prediction markets are more accurate than polls in forecasting election outcomes, though Mansour insists that’s the case.

But prediction markets’ role in politics remains fraught for some. Election officials in Wisconsin on Tuesday warned residents that voters “cannot legally make a bet on an election and cast a ballot in the same election.” Those who do so risk their ballot not being counted.

“We disagree with that position,” Mansour said.

THE SPEED READ

Deals

• Fenway Sports Group, which controls the Liverpool F.C. English soccer club, is reportedly in talks to sell a minority stake to an investor group led by the son-in-law of Lakshmi Mittal, the steel billionaire. (Bloomberg)

Politics, policy and regulation

Best of the rest

We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.

President Trump said on Tuesday evening that he planned to impose tariffs on imported generic medicines, his latest threat aimed at bringing pharmaceutical manufacturing back to the United States.

The planned levy will start at 100 percent in August 2028, Mr. Trump said in a social media post. He said it would rise to 200 percent in August 2029, months after the end of his second term. Mr. Trump has repeatedly threatened steep tariffs on imported pharmaceuticals but not has followed through on imposing them.

“This is done in order to RESHORE Generic Pharmaceutical Production into America,” Mr. Trump wrote on in his social media post. He suggested that companies would be penalized if they did not build factories in the United States, but the details were not clear.

Soon after the start of his second term, Mr. Trump began using the threat of pharmaceutical tariffs as a lever to try to bring brand-name drug companies to the table to negotiate deals lowering some of their prices and bringing back some of their overseas manufacturing.

Nearly all of the largest brand-name drugmakers have announced plans to build or expand U.S. factories. In the generics industry, where companies often operate with razor-thin margins, only a few companies have announced such plans.

Generic drugs, such as statins and antibiotics, account for about 90 percent of Americans’ prescriptions. They are most often manufactured in India, with heavy reliance on China for ingredients. Republicans and Democrats have identified that as a national security vulnerability.

Doctors and supply chain experts have been sharply critical of the idea of taxing imported generics, saying it threatened to raise costs, spur rationing and lead to shortages of crucial drugs. Until now, the administration had said that generic drugs would be exempted from tariffs.

John Murphy III, chief executive of the Association for Accessible Medicines, a trade group for generic drug makers, said in a statement on Tuesday evening that his industry will work with the administration and lawmakers “to pursue solutions that restore the generics industry to growth and to prioritize its place as a critical national security asset here in the U.S.”

For Canada and the United States, it was always going to be a bumpy summer.

Ever since the United States on July 1 declined to renew the trade deal President Trump negotiated with Canada and Mexico in his first term, the Canadian government, and many Canadians, have been bracing for his administration to try to use pressure tactics to extract concessions on trade.

On Monday the administration did just that, upping the ante, as Mr. Trump made use, for the first time in history, of a nearly century-old provision to impose fresh tariffs on the second-largest U.S. trading partner.

But the move is more likely elicit stoicism than panic from the Canadian side.

The tariffs, which experts expect to face legal challenges, target more than 500 Canadian goods, including cheese and hockey sticks, worth $20 billion. That’s about 2 percent of the entire trading relationship in goods between the two neighbors, which was worth some $720 billion last year.

Those goods are virtually all covered by the upended United States-Mexico-Canada Agreement, a free-trade pact known as the U.S.M.C.A. In 2020 it replaced and updated the North American Free Trade Agreement, which took effect in 1994.

Mr. Trump, who negotiated the U.S.M.C.A. during his first term, at the time called it the “largest, fairest, most balanced and modern trade agreement ever achieved,” but has criticized it in his second term as the worst agreement ever. That deal, and the 1994 one, known as NAFTA, between them have for decades shaped the economy of the United States and its North American neighbors, Canada and Mexico.

Mr. Trump and the U.S. trade representative, Jamieson Greer, said on Monday that the new tariffs were intended to punish what they labeled Canada’s “discriminatory” treatment of the U.S. auto, dairy and alcohol industries. In introducing the tariffs, Mr. Trump raised his often-repeated narrative that Canada is a mooch on the United States.

In a statement accompanying the new measures, Mr. Greer highlighted his disapproval of the fact that Canada had taken retaliatory tariffs against some U.S. goods in response to American levies, the only country to do so other than China.

The response by Prime Minister Mark Carney of Canada was dispassionate.

“This is the latest in a series of unilateral U.S. trade actions that began with the U.S. imposing a series of tariffs” violating the U.S.M.C.A., Mr. Carney said in a statement on Monday. “Canada, as is its right, has merely matched those measures,” he added.

The new tariffs came days after Mr. Trump threatened Canada with sanctions for the wildfire smoke that has drifted from the blazes raging in Ontario to U.S. cities.

Mr. Carney was elected last year on a wave of profound concern and anger at Mr. Trump’s belligerent rhetoric toward Canada. He promised to build a sustainable trade agreement with Mr. Trump but also make Canada more independent of the United States.

He has pledged to double trade with non-U.S. economies by 2035, and has relentlessly traveled the world seeking investments and new trading partners. He has turned to both Asia and Europe to strengthen Canada’s economic and strategic alliances, and has made it plain that diversification away from the United States is his core U.S. policy. He has even suggested that a Canada with stronger global ties is a better partner to the United States.

The Canadian economy has treaded water through all of this and so far avoided a recession. But U.S. tariffs on goods such as steel, aluminum and vehicles have hit sensitive sectors, and the broader uncertainty around Canada’s relationship with its top partner affects the investment environment, which values stability.

The Canadian public seems to support Mr. Carney’s approach, handing him persistently high approval ratings in polls. Sentiment about the United States seems to have suffered more. Significantly fewer Canadians have been traveling to the United States for tourism over the last year according to Canada’s national statistics agency. And a recent Pew poll showed that only 35 percent of those surveyed in Canada describe the United States as a reliable partner, down from 83 percent in 2022.

These data points suggest that Mr. Carney has support at home to play hardball. Canadians generally want him to strike a fair and lasting deal, unlike many of the United States’ other trade agreements, which have been seen as fickle.

That grace is most likely not infinite. The opposition Conservative Party continues to strongly criticize Mr. Carney for failing to strike a deal with the United States, calling on him to take action to salvage the relationship and decrying some of his overseas outreach as theater rather than substance.

“President Trump is wrong to target Canadian workers and must reverse these tariffs immediately,” Pierre Poilievre, the Conservative leader, said in a statement on Monday, adding, “And Mark Carney was wrong to surrender Canada’s leverage for over a year and a half, without actually working to secure the deal he promised.”

Many Canadians remain worried about the impact that an aggressive United States can have on their lives, particularly the possibility of permanently tearing up the U.S.M.C.A. rather than just declining to renew it, which will lead to more negotiations.

Still, Mr. Carney is likely to hold out in protracted talks this summer, rather than roll over. At the very least he has until Aug. 19, when Mr. Trump’s newly announced tariffs are set to take effect.

In his statement on Monday evening, Mr. Carney reminded Canadians that this battle was about more than the economy, invoking Mr. Trump’s “threats to Canadian sovereignty,” a reference to the president’s repeated claims since late 2024 that Canada should become the 51st American state. That quip animated many Canadian voters to elect Mr. Carney last year.

President Trump on Monday signed orders that would impose a 50 percent tariff on a wide range of Canadian goods, claiming that Canada had discriminated against the United States in key markets.

U.S. officials said the tariffs would be imposed on products ranging from wine to hockey sticks to cement and would go into effect in 30 days. The officials said the tariffs were punishment for Canadian discrimination in three industries: motor vehicles, dairy and alcohol.

The tariffs appear likely to reignite a trade clash with Canada, one of America’s closest allies and its second-largest trading partner after Mexico. Canada has been in Mr. Trump’s cross hairs since its government retaliated against tariffs that the president imposed on a wide range of products last year.

Trump officials have repeatedly complained that Canadian provinces have halted purchases of U.S. alcohol, and said Canada was one of only two nations, along with China, to hit back against Mr. Trump’s tariffs with its own levies.

The tariffs will not apply to energy products, potash, certain fish and minerals, or products that are already subject to national security tariffs, like steel and auto parts. Yet unlike previous rounds of U.S. tariffs, there would be no exemptions for Canadian goods covered by the United States-Mexico-Canada Agreement, the free-trade deal that Mr. Trump negotiated and signed into law during his first term, a senior administration official said.

The United States is currently pressing for changes to that agreement, called the U.S.M.C.A., which Mr. Trump signed in 2018. U.S. officials will travel to Mexico this week for talks, but the United States and Canada have not begun officially negotiating over the agreement.

The new tariffs will be imposed under an obscure legal provision, Section 338 of the Tariff Act of 1930, which allows the government to put tariffs on imports from countries that discriminate against U.S. commerce as compared to other countries.

The official said they had spoken with Canadian officials about the measure and were briefing members of Congress on it. The United States remains open to discussions with Canadian counterparts, the official said.

This is a developing story. Check back for updates.