Daily Digest: Tariffs and the election

Good morning, and welcome to Monday and the start of another work week. The Legislature returns to St. Paul today after a break for Easter and Passover. Here's the Digest.

1. Trade becoming an issue in mid-term elections. Many of the farmers who helped propel Donald Trump to the presidency fear becoming pawns in his escalating trade war with China, which threatens markets for soybeans, corn and other lifeblood crops in the Upper Midwest. But Jim Hagedorn, a former GOP congressional aide and Treasury official running for an open Minnesota House seat, says they should keep their faith in Trump. “He understands just how important it is to these rural areas that we have these markets,” Hagedorn said in an interview at his campaign office. “Do I understand that the president has the prerogative to go out and negotiate? Of course I do. But I trust that in the end, he’s going to do everything possible to make sure that we help everyone in the United States, including our farmers.” Trump’s aggressive attacks on China over trade are putting Republicans such as Hagedorn in a difficult spot — torn between siding with Trump and acknowledging the economic peril to many of their constituents. (Washington Post)

2. Tax debate awaits lawmakers. Adapting state tax law to the federal changes “is probably the most difficult and the most important” issue still facing lawmakers, said Senate Majority Leader Paul Gazelka, R-Nisswa. “Will we come to a place that we can agree? That will be the biggest hurdle, I think, of the session.” Some at the Capitol have speculated that the complicated tax overhaul could force lawmakers to return for a special session after the regular session concludes on May 21. Republican House Speaker Kurt Daudt said House Republicans are committed to avoiding that. House Republicans will put forward their tax plan shortly after they return to the Capitol, Daudt said. He said they would not increase taxes and want to keep the state competitive by reducing taxes in some areas. They might propose using some of the state’s projected $329 million surplus to do that, he said. Dayton presented a tax package several weeks ago that emphasizes tax cuts for middle and lower-income residents. It repeals tax breaks added last session for businesses, tobacco and wealthy estates — a move the GOP opposes. (Star Tribune)

3. Legislation moving that eases environmental regulations. Bills to nullify Minnesota's water quality standard for wild rice, speed Enbridge Energy's to replace its deteriorating Line 3 crude oil pipeline and block regulations meant to keep nitrates out of drinking water are advancing through the Minnesota Legislature, which reconvenes Monday. Another bill awaiting action on the Senate floor would give Xcel Energy an easier path for renovating its Monticello and Prairie Island nuclear power plants and keeping them operating until their federal licenses expire in the 2030s. (AP)

4. Minnesota lawmakers are considering a new felony offense for anyone training or recruiting protesters who damage “critical infrastructure.” Supporters of the legislation say it’s necessary to bolster public safety for pipelines, power lines, oil refineries, railroads, airports and other important facilities. Opponents say the legislation is an overreach intended to chill public protests. Either way, bills pending in Minnesota are similar to legislation in at least five other states. They come amid a protest movement against oil pipelines, particularly the construction of new ones — like Enbridge’s proposed Line 3 replacement across northern Minnesota. The legislation would penalize “whoever intentionally recruits, trains, aids, advises, hires [or] counsels” somebody else to commit property damage on a pipeline or other “critical public service facility.” Such an act would be a felony punishable by up to 10 years in prison and/or a fine up to $20,000. (Star Tribune)

5. Pawlenty now supports President Trump. Former Gov. Tim Pawlenty says he voted for Donald Trump for president in 2016, weeks after publicly denouncing the candidate and his behavior. Pawlenty made the declaration Friday during an Eagan news conference — his first since announcing in a video a day earlier that he’s running again for his old job. With an eye toward attracting Trump voters, Pawlenty tried to distance himself from past criticisms of the president. “The message to Trump voters is: I voted for President Trump. I support most of what he’s doing, nearly all of what he’s doing on a policy level,” Pawlenty said. “I just didn’t approve of some of his comments and language and behavior.” Pawlenty made his disapproval clear in Oct. 2016, after a recording surfaced of Trump making vulgar comments about women. Pawlenty described Trump as “unsound, uninformed, unhinged and unfit” for office. He also said at the time that he was withdrawing his support. (MPR News)

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