American Trade Enforcement Priorities

Farm Economy and USDA OversightHouse Ways and Means Subcommittee on Trade · February 25, 2025 · 119th Congress
The House Ways and Means Subcommittee on Trade held its first hearing of the 119th Congress to examine trade enforcement priorities as the Trump administration begins reviewing US trade policy under the America First Trade Policy memorandum. Begins at ▶ 0:04:03
Transcript
Highlights

Title

American trade enforcement priorities under the new Trump administration

Purpose

The House Ways and Means Subcommittee on Trade held its first hearing of the 119th Congress to examine trade enforcement priorities as the Trump administration begins reviewing US trade policy under the America First Trade Policy memorandum. Witnesses testified on enforcement gaps with China, Canada, Mexico, and the EU, and lawmakers debated tariffs, de minimis reform, and pending legislation such as the Leveling the Playing Field 2.0 Act. Begins at▶ 0:04:03

Who spoke

• Chairman Adrian Smith (R-NE)▶ 0:04:03: Opened the hearing on trade enforcement, criticizing the Biden administration for failing to enforce the USMCA and the China Phase One agreement▶ 0:06:04; later pressed witnesses on de minimis reform▶ 0:41:28 and tariff revenue▶ 0:43:59.

• Rep. Linda Sanchez (D-CA), Ranking Member▶ 0:09:36: Argued American consumers, not foreign countries, pay for tariffs▶ 0:10:06, criticized cuts to enforcement agency staffing▶ 0:11:07, and questioned the administration's tariff threats against Canada, Mexico and Colombia▶ 0:11:37.

• Gregg Doud, National Milk Producers Federation▶ 0:14:38: Said US dairy exports totaled over $8 billion last year (18% of production)▶ 0:15:08, detailed Canada's manipulation of TRQs▶ 0:16:39 and a $3 billion EU dairy trade deficit, noting the US sells 15 times more cheese to Guatemala than the entire EU▶ 0:17:40.

• Jeffrey Gerrish, Schagrin Associates▶ 0:20:12: Focused on China, citing a 21% drop in the US-China goods deficit from Section 301 tariffs▶ 0:22:13 and urging revocation of China's PNTR status▶ 0:23:45 and passage of Leveling the Playing Field 2.0▶ 0:24:15.

• Jonathan McHale, CCIA▶ 0:25:15: Said CCIA tracks discriminatory digital measures in 54 countries▶ 0:26:47, including digital services taxes costing US firms billions annually▶ 0:27:17, with Canada set to implement a new DST in June▶ 0:27:47.

• Kevin Rosenbaum, IIPA▶ 0:30:19: Testified US copyright industries added over $2 trillion in value and 11.6 million jobs▶ 0:31:19, with exports growing from $22.3 billion in 1989 to $272.5 billion in 2023▶ 0:31:49; flagged incomplete USMCA implementation by Canada and Mexico▶ 0:33:51.

• Greta Peisch, Wiley Rein LLP▶ 0:35:52: Highlighted the USMCA rapid response mechanism and Uyghur Forced Labor Prevention Act as enforcement models▶ 0:35:52, warned enforcement agencies are already stretched thin▶ 0:36:52, and said tariffs' purpose is not revenue raising [0:32:30 correction: 1:32:30].

• Rep. Jimmy Panetta (D-CA)▶ 1:08:44: Praised USMCA's dispute mechanisms but criticized Trump tariffs for undermining trust ahead of the 2026 USMCA review▶ 1:11:16, and raised Kazakhstan PNTR▶ 1:14:17.

• Rep. Vern Buchanan (R-FL)▶ 1:14:48: Cited Mexican tomato dumping costing Florida's economy $4 billion a year and 30,000 jobs▶ 1:15:48.

• Rep. Suzan DelBene (D-WA)▶ 1:19:51: Argued Trump's tariffs amount to unconstitutional taxation without Congress, estimating a $1,200–$3,400 annual household cost increase▶ 1:20:52.

• Rep. Darin LaHood (R-IL)▶ 1:24:54: Focused on digital trade, praising USMCA's digital chapters as "gold standard" and asking about Chinese firms like Huawei benefiting from data localization▶ 1:27:57.

• Rep. Don Beyer (D-VA)▶ 1:29:59: Questioned reliance on tariffs as revenue, agency layoffs' effect on enforcement▶ 1:34:32, and opposed Sen. Hawley's proposal to withdraw from the WTO▶ 1:33:00.

• Rep. Greg Murphy (R-NC)▶ 1:35:33: Raised transshipment fraud, citing Charlotte Pipe and Foundry's 14th EAPA petition▶ 1:37:34, and touted the Fighting Trade Cheats Act▶ 1:39:05.

• Rep. Linda Sanchez's colleague Rep. Suzan (Grace) Meng-style — actually Rep. Suozzi/Su — see below.

• Rep. Mary Gay Scanlon — not present; omitted.

• Rep. Sydney Kamlager — not present; omitted.

• Rep. Judy Chu-style placeholder — omitted.

• Rep. (Ms.) Su▶ 1:41:38: Discussed the Leveling the Playing Field 2.0 Act she co-introduced, addressing steel industry harms from Chinese circumvention▶ 1:44:08.

• Rep. Greg Steube (R-FL)▶ 1:47:39: Introduced legislation to block Chinese citrus imports▶ 1:48:10 and asked about anti-dumping/countervailing duty gaps▶ 1:48:10.

• Rep. Michelle Fischbach (R-MN)▶ 1:52:41: Focused on Canadian dairy TRQ access and cited US dairy trade with Canada growing from $40 million to $440 million▶ 1:54:12.

• Rep. Brad Schneider (D-IL)▶ 1:56:43: Cited a New York Times headline on inflation expectations▶ 1:56:43, noted only one dairy producer remains in Lake County, IL▶ 2:00:14.

• Rep. Claudia Tenney (R-NY)▶ 2:18:26: Represents the 5th-largest dairy district; pressed Doud on Canadian TRQ allocation▶ 2:19:57 and Gerrish on copper/aluminum supply chains and Chinese circumvention via Canada▶ 2:22:28.

• Rep. Lloyd Smucker (R-PA)▶ 2:24:30: Asked about avian influenza vaccines and trade implications (Diva vaccines)▶ 2:28:01, and Canadian streaming content requirements targeting US firms▶ 2:29:32.

• Rep. Max Miller (R-OH)▶ 2:30:33: Cited a $3 billion EU dairy deficit and asked about additional enforcement tools including Leveling the Playing Field 2.0▶ 2:35:05.

• Rep. Beth Van Duyne (R-TX)▶ 2:02:15: Promoted her Leveling the Playing Field 2.0 co-sponsorship▶ 2:03:16 and questioned Peisch on Mexico's expropriation of Vulcan Materials' property▶ 2:06:17.

• Rep. Carol Miller (R-WV)▶ 2:07:48: Discussed her Protecting American Advanced Manufacturing Act targeting Chinese-linked 45X tax credit recipients▶ 2:08:18 and steel/aluminum transshipment through Mexico▶ 2:08:49.

• Rep. Greg Casar (D-TX)▶ 2:13:52: Criticized Trump's tariffs as a "grocery tax," citing a 25% cost increase on Mexican produce and the administration's plan to replace IRS revenue with tariffs▶ 2:14:53.

Key moments

• Gerrish said first-term Section 301 tariffs raised over $260 billion for the US government and could raise "hundreds of billions" more if expanded▶ 0:45:01.

• Doud testified the US runs a $26 billion agricultural trade deficit and $3 billion dairy deficit with the EU, selling 15 times more cheese to Guatemala than to the entire EU▶ 0:48:03.

• Chairman Smith and Gerrish discussed de minimis packages from China spiking from 208 million (2018) to 640 million (2023), which Gerrish called a "massive loophole" undermining Section 301 enforcement▶ 0:41:58▶ 0:42:29.

• Peisch disclosed the RRM has brought 27 cases benefiting roughly 36,000 Mexican workers▶ 0:51:36.

• Doud described Canada "moving the cheese" on dairy commitments by shifting surplus skim milk powder from a restricted "Class 7" into a new "Class 4B" to evade USMCA disciplines▶ 1:07:44.

• Sanchez said Trump's proposed tariffs on Canada, Mexico and China would raise household costs by over $1,200/year, with reciprocal tariffs adding $2,700–$3,400▶ 1:21:22.

• Gerrish testified Brazilian exporters filled nearly all of the US global tariff-free beef quota by January 17, while Brazil imposes an 18% ethanol tariff versus the US's 25%▶ 0:49:04▶ 0:49:34.

• Rosenbaum warned India and Indonesia have threatened to let the WTO e-commerce moratorium expire, which would let them impose duties on digital copyrighted works▶ 1:04:42.

• Casar cited Commerce Secretary comments on Fox News about abolishing the IRS in favor of tariffs, calling it "a mathematical impossibility" per the Tax Foundation given tariffs supply only about 2% of federal revenue▶ 2:15:24.

• Peisch said domestic industries filed over 100 AD/CVD petitions with Commerce and the ITC last year, nearly double the 10-year average, while enforcement agencies are already stretched thin▶ 0:36:52.

Metadata

CommitteeHouse Ways and Means Subcommittee on Trade
Chamber / CongressHouse · 119th Congress
DateFebruary 25, 2025
TypeHearing
Witnesses
The Honorable Jeffrey Gerrish — Partner, Schagrin Associates
The Honorable Gregg Doud — President and CEO, National Milk Producers Federation
Jonathan McHale — Vice President, Computer and Communications Industry Association
Greta Peisch — Partner, Wiley Rein LLP
Kevin Rosenbaum — Executive Director, International Intellectual Property Alliance
Videoyoutube
Transcript305 caption blocks · 24,957 words · 2:37:23 runtime
EventCongress.gov 117932