American Trade Negotiation Priorities

Farm Economy and USDA OversightHouse Ways and Means Subcommittee on Trade · March 25, 2025 · 119th Congress
The House Ways and Means Subcommittee on Trade held its second hearing of the 119th Congress to let members and industry witnesses lay out priorities for upcoming U.S. Begins at ▶ 0:34:01
Transcript
Highlights

Title

Trade negotiation priorities for beef, motorcycles, and services exports

Purpose

The House Ways and Means Subcommittee on Trade held its second hearing of the 119th Congress to let members and industry witnesses lay out priorities for upcoming U.S. trade negotiations ahead of the Trump administration's planned April tariff actions. Witnesses from the cattle, motorcycle, services, and trade-law fields testified on tariff and non-tariff barriers facing American exporters, the U.S.-UK negotiation opportunity, digital trade rules, and the constitutional balance of trade authority between Congress and the executive. Democrats used the hearing to press concerns about President Trump's use of emergency tariff powers against Canada and Mexico ahead of "Liberation Day." Begins at▶ 0:34:01

Who spoke

• Chairman Adrian Smith (R-NE)▶ 0:34:01: Opened by touting USMCA, the China Phase 1 deal, and the US-Japan agreement as first-term successes▶ 0:34:31, and said upcoming negotiations should build on them while enforcing existing commitments▶ 0:38:03.

• Rep. Linda Sánchez (D-CA), Ranking Member▶ 0:38:33: Criticized Trump's use of tariff authority against Canada and Mexico▶ 0:39:34, cited Canada's 25% retaliatory tariff on Harley-Davidson motorcycles▶ 0:40:04, and argued binding trade agreements require congressional approval▶ 0:41:35.

• Robby Kirkland, Texas Cattle Feeders Association / NCBA▶ 0:44:06: Said the U.S. exported $10.45 billion of beef in 2024 ($415/head)▶ 0:45:37, faces a 50% tariff in Thailand and 30% in Vietnam▶ 0:46:07, and that Australia has sold $29 billion of beef to the U.S. over 20 years while the U.S. has sold none to Australia▶ 1:14:52.

• Jonathan Root, CFO/President of Commercial, Harley-Davidson▶ 0:48:39: Detailed a 56% total EU tariff on Harley motorcycles versus a 0-2.4% U.S. import duty on foreign motorcycles▶ 0:51:40, and said a Road Glide priced at $28,000 in the U.S. would cost about $124,000 in Denmark under the EU's added retaliatory tariff▶ 0:53:41.

• Meredith Broadbent, CSIS Senior Advisor▶ 0:56:12: Urged a comprehensive U.S.-UK trade and investment agreement building on the chairman's bill (H.R. 1743)▶ 0:56:42, and said the UK's accession to CPTPP moves it toward the USMCA regulatory model▶ 0:59:44.

• Christine Bliss, Coalition of Service Industries▶ 1:02:45: Said U.S. services exports topped $1 trillion in 2023 with a nearly $280 billion surplus▶ 1:03:16, and called for digital trade rules on data flows, anti-localization, and a permanent ban on customs duties on transmissions▶ 1:04:46.

• Kathleen Claussen, Georgetown Law▶ 1:08:19: Explained Congress's Article I authority over trade and distinguished "trade executive agreements" from congressionally-approved FTAs, noting the U.S. maintains sub-FTA agreements with over 100 countries▶ 1:10:51.

• Rep. Jodey Arrington (R-TX)▶ 1:25:58: Argued for reciprocal tariff rates, noting the U.S. average trade rate (3.3%) is roughly half that of the 20 largest economies▶ 1:26:34.

• Rep. Jimmy Panetta (D-CA)▶ 1:31:31: Contrasted the Bush administration's 13 FTAs and Obama's three with the first Trump term's one (USMCA) and Biden's zero▶ 1:32:32, and raised a constituent small business facing a $38,000 CBP bill after goods crossed 16 minutes after Mexico tariffs took effect▶ 1:33:32.

• Rep. Carol Miller (R-WV)▶ 1:36:34: Highlighted no U.S. trade agreement with an Indo-Pacific partner in over 10 years while China concluded an ASEAN deal in October 2024▶ 1:37:35.

• Rep. Suzan DelBene (D-WA)▶ 1:42:09: Said fentanyl from Canada accounts for only 2% of border seizures despite tariffs justified on that basis▶ 1:43:09, and cited half a million fewer Canadians crossing the border in February versus last year▶ 1:44:09.

• Rep. Lloyd Smucker (R-PA)▶ 1:47:41: Asked Root what policy solutions would help Harley-Davidson, prompting Root's call for enforcement, reciprocal duties, and limits on non-tariff barriers▶ 1:50:13.

• Rep. Greg Murphy (R-NC)▶ 1:53:44: Raised California's Prop 12 as a non-tariff barrier hurting pork producers▶ 1:54:44 and asked about securing medical supply chains from China▶ 1:57:47.

• Rep. Lloyd Doggett (D-TX)▶ 1:59:18: Said a foreign government was told by the administration there was "absolutely nothing" it could do to avoid tariffs▶ 2:01:19, and linked the 2017 tax law to a roughly $100 billion pharmaceutical trade deficit with Europe▶ 2:03:21.

• Rep. Claudia Tenney (R-NY)▶ 2:04:22: Noted her district is the fifth-largest dairy district and largest agricultural district in the Northeast▶ 2:05:22, and asked Root about a universal baseline tariff▶ 2:08:23.

• Rep. Beth Van Duyne (R-TX)▶ 2:09:54: Pressed on USMCA enforcement to stop China using Mexico/Canada as a "back door"▶ 2:10:55 and raised Mexico's expropriation of Vulcan Materials land▶ 2:11:26.

• Rep. Don Beyer (D-VA)▶ 2:15:29: Called the Canada trade dispute "the dumbest trade war in history" per the Wall Street Journal▶ 2:17:00, and pressed Bliss on whether VATs are discriminatory, drawing her answer that Mexico's retroactive VAT application on insurance is the most urgent concern▶ 2:20:01.

• Rep. Blake Moore (R-UT)▶ 2:21:01: Asked about UK beef market opportunities given Utah's $86 million in 2022 beef exports▶ 2:21:31, and about reshoring supply chains with Root▶ 2:23:32.

• Rep. Rudy Yakym (R-IN)▶ 2:47:19: Noted the Biden administration's Indo-Pacific Economic Framework excluded tariff reduction entirely, confirmed by Kirkland and Root▶ 2:47:49▶ 2:49:20.

Key moments

• Root testified the EU's scheduled 56% total tariff on Harley-Davidson motorcycles compares to a 0-2.4% U.S. import duty on foreign motorcycles, and that 2018-2021 EU tariffs already cost the company an estimated $166 million▶ 0:52:10.

• Kirkland said Brazil and Paraguay were granted U.S. beef market access despite USDA denying requests to suspend access and audit their foot-and-mouth disease claims▶ 2:27:35.

• Sánchez noted retaliatory tariffs from the EU and Canada cited by Root came in response to tariffs "the US or more specifically president Trump has imposed first," calling it a "tit for tat battle"▶ 1:24:58.

• Bliss testified China met only an estimated 54% of its Phase 1 agreement services-purchase commitments, which called for $12.8 billion in additional purchases in year one and $25.1 billion after▶ 1:22:57.

• Claussen said congressionally-approved trade agreements are more durable, ambitious, and legitimate than executive-only agreements, partly because Congress can pair trade concessions with changes to U.S. law▶ 1:21:56.

• Panetta cited a small food distributor in his district facing a $38,000 CBP bill after a shipment crossed the Mexican border 16 minutes after new tariffs took effect, three days before a USMCA-compliant exemption▶ 1:33:32.

• Doggett said a senior official told a foreign government's representative there was "absolutely nothing" it could do to avoid new tariffs, and warned against complaining▶ 2:01:19.

• Yakym established that the Biden administration's Indo-Pacific Economic Framework never addressed tariffs on Vietnamese (30%) or Thai (50%) beef tariffs, nor Harley-Davidson's tariff burdens in the region▶ 2:47:49▶ 2:49:50.

• Kirkland said the U.S. and Australia/New Zealand/Canada have zero tariffs between them while other Asian markets impose steep tariffs, arguing the U.S. should reduce reliance on China as its main beef export market▶ 2:13:28.

• Bliss flagged Canada's proposed 3% Digital Services Tax applied retroactively as a major cost concern, alongside roughly half of European OECD members having or considering DSTs▶ 2:40:13.

Metadata

CommitteeHouse Ways and Means Subcommittee on Trade
Chamber / CongressHouse · 119th Congress
DateMarch 25, 2025
TypeHearing
Witnesses
Robby Kirkland — Chairman, Texas Cattle Feeders Association
Jonathan Root — Chief Financial Officer and President of Commercial, Harley-Davidson, Inc.
Meredith Broadbent — Senior Advisor (Non-resident), Economics Program and Scholl Chair in International Business, Center for Strategic and International Studies
Christine Bliss — President, Coalition of Service Industries
Kathleen Claussen — Professor of Law, Georgetown University Law Center
Videoyoutube
Transcript277 caption blocks · 21,568 words · 2:53:22 runtime
EventCongress.gov 118047