▶ 0:15:06The committee will come to order. I first want to say congratulations, Ambassador Greer, on your confirmation. Um uh and and your immediate work on President Trump's bold trade agenda, I know, is keeping you very busy. Thank you for being here with us. The only mistake is you went to the Senate before us. Um but you won't do that again, I'm sure.
▶ 0:15:34Um, the Trump administration's trade policies are leveraging the power of the world's largest market to create fair trade relationships that level the playing field for American farmers, workers, and producers. The Trump agenda prioritizes the long-term prosperity of working families and communities ahead of short-term stock market swings.
▶ 0:15:59The American people are counting on us to think beyond today's headlines and stay focused on growing the economy and creating good paying jobs. Prior to President Trump's reciprocal tariff action, an estimated 2third of the 600,000 products exported by American companies paid higher tariffs than foreign trading partners paid on similar exports to the
▶ 0:16:29US. Thailand charges a 50% tariff on US beef. Japan charges a 700% tariff on US rice. Australia effectively blocks the sale of US beef while we imported 3 billion from them just last year alone. The European Union rejects our biotech crops through a torturous six-year regulatory process.
▶ 0:17:00It's only fair that we levy tariffs similar to the ones faced by Americanmade products. Since inauguration day, we have seen more than $5 trillion in commitments for new investments in the US, including after the announcement of the reciprocal tariffs. Since Liberation Day, nearly 70 different nations have come to the table asking to reset our trading relationship.
▶ 0:17:29This approach will generate more market access under better terms for American producers. And if any nation chooses not to cooperate, these tariffs, they will generate significant revenues. Based on President Trump's tariff policies, so far it seems conservative to expect the US to collect hundreds of billions of dollars in additional tariff revenue each year.
▶ 0:17:57President Trump is continuing the successful strategy he used in his first term. Tariffs brought China to the negotiating table for the phase 1 agreement, which has netted 40 billion in annual tariff revenue paid by importers from China and increased fairness for American producers. Other agreements like USMCA opened markets for Americanmade products and ensured fair treatment for our workers and businesses.
▶ 0:18:28An America first trade policy is needed now more than ever. America ran trillion dollar goods trade deficits all four years under Biden. Previously, America has never run even one year. We ran a $ 32 billion agriculture trade deficit last year.
▶ 0:18:53Under President Trump's first administration, we had an average annual agriculture trade surplus of five billion. The Biden administration failed to counter China's moves to reorder the global economy around Beijing. Failure to assess whether China was adhering to the phase 1 agreement meant the agreement was never truly enforced.
▶ 0:19:19The Trump administration is reviewing potential violations of the agreement as well is exploring section 232 and 301 investigations to further address unfair trade barriers ripe for enforcement actions. President Trump has made good on his promise to tackle China's abuse of our trade laws and ended its access to the dimminimous privilege.
▶ 0:19:44The administration's actions mirrored committee legislation passed last year to crack down on the instance of China's trade abuse, and President Trump has now set in motion a process to end the dimminimous privilege globally to improve trade enforcement. The Biden administration had to be dragged in defying Canada's denial of market access to our dairy farmers and Mexico's similar treatment of our corn farmers.
▶ 0:20:14The Trump administration will enforce trade agreements to benefit farmers and ranchers. Strong enforcement should be complemented with trade relationships with that respect American workers and manufacturers. President Trump's tariffs have set the stage for the United States to negotiate from a position of strength. I fully anticipate more nations to come forward to reset their trading relationship with the United States.
▶ 0:20:44I represent an agriculture and manufacturing region under unfair trade policies. We've had factories shut down and lay off people in our district. The Dana Corporation, an auto parts company in Cape Gerardo, closed, killed 440 jobs and shipped them Mexico.
▶ 0:21:07A Briggs and Straten factory where my mother worked in Raleigh, Missouri, closed, killing 450 jobs and shipped them other places. The Brown Shoe Company in Sykes, Missouri was just one of numerous Brown Shoe factories in our congressional district that closed, costing hundreds of jobs.
▶ 0:21:31Nordine closed in popular Bluff back in 2013, cutting 500 jobs and moved that production to Nanda shut down its aluminum plant costing 900 jobs in New Madrid, Missouri in 2016 before the aluminum tariffs. I could go on as could every member on this dis.
▶ 0:21:58Changing course and undoing the damage caused by years years of unbalanced trade relationships won't happen overnight. President Trump's economic agenda, from tariffs to tax relief to deregulation, is about making it competitive again to build, manufacture, grow, and produce in America.
▶ 0:22:19I look forward to working to change our trading relationships to a source of our nation's economic strength and revenue, not a source of decline and dependence. Thank you for coming before the committee, and I look forward to hearing your testimony. I'm pleased to recognize the ranking member, Mr. nil for his opening statement. Thank you, Mr. Chairman, and I want to thank you, Ambassador Gear, for being with us today. There's a new political caucus, as you know, that has been formed in this town. It's called Republicans for Tariffs.
▶ 0:22:47This is the first time that we've heard them ever embrace tariffs. And I must point out that Lichenstein doesn't stand a chance. from the economic soft landing that President Trump was handed and low unemployment rate 2.9% average of growth GDP and millions of jobs created during the previous four years. It's only taken him 79 days to inflict this permanent damage. Recession odds are getting higher by the day.
▶ 0:23:17We are following the largest tax and tariff hikes in decades. The average family will confront about $3,800 in new costs. Look at one's 401k, retirement savings, education plans, new home and auto sales been wiped out. The layoffs continue and the plant closings that the chairman referenced today are continuing as well. Trillions of dollars have been lost just in the last week.
▶ 0:23:43The National Review and the Wall Street Journal, hardly left-wing publications, have both warned against the tariffs and National Review, saying today it's time for Congress to assert itself and end this trade war. Last night, the president said he's now coming for higher drug prices. Between the cuts they've planned to our programs at lower cost and the rising prices of these tariffs, their giveaways won't make a dent in the higher cost our colleagues have planned, apparently, for the American people.
▶ 0:24:12The Wall Street Journal editorial board said it best. This is the dumbest trade war in history. It's not only dumb, it's unconstitutional. It started with the Trump administration's unprecedented opposition and imposition of emergency tariffs on two of our closest allies. You and I, Mr. Ambassador, know something. We negotiated USMCA. It was a good deal. 195 Republicans voted for it. 196 Democrats voted for it. It was a real negotiation.
▶ 0:24:41coupled with the fact that it is to be reviewed next year. Instead, we're now imposing tariffs on two of our longtime friends and neighbors. The president has given himself delegated powers under the International Emergency Economic Powers Act, AIPA. It's not a blank check for this president or any president to utilize without congressional ascent. On April 2nd, he stretched it even further to self-delegate more emergency powers.
▶ 0:25:09Now he's defying economics and attempting to convince people that the trade deficit that we've had for the last 50 years is suddenly an unusual and extraordinary emergency. I've had the highest regard for USRS. I've worked with all of them during my time on this committee. I know what they really think. But whether we or you think that this trade deficit is a concern or not, most serious economic economists say it is. It's clear that it does not meet the definition of an emergency statute.
▶ 0:25:39Republicans in Congress are missing in action, afraid to speak up, knowing that they've never embraced tariffs as an economic suggestion. I could never have imagined witnessing this as our Republican colleagues act as though nothing is happening. The constitution clearly vests trade authority in Congress and the powers that have been delegated to the president and USR over the years remain paramount.
▶ 0:26:07But the constitutional arrangement has always been based on trust and adherence to the law. And we've had a lot of trust with USR over the years. That trust is now fractured and on the verge of being permanently broken. I've heard your defense of tariffs and I expect we'll hear more today. We don't object to all tariffs. Targeting tariffs, the threat of tariffs, it frequently can bring about an outcome that is negotiated and desirable.
▶ 0:26:34But to raise prices on the American family and to kill our own exports is unacceptable. Starting a trade war with every other country at the same time is bad strategy and driving away allies that have stood with us for decades. None of us on this side of the dis understand it. The courts will often see these trumped up emergencies for the pretext that they are and eventually will declare many of them to be illegal.
▶ 0:26:59Trade policy should return to serving America's interest and being consistent with the law and indeed our constitution. The people cannot afford more amateur hour undertakings. Trade policy needs to move back into the hands of Congress for real negotiation the way it was intended. We can begin by restoring some of that trust that has been so badly damaged in the last week. Mr. Ambassador, we want to work with you on these trade agreements. Closing the doors to America is not sound policy.
▶ 0:27:29It can be fixed, but it's going to take putting the rule of law over ego and greed. I yield back my time, Mr. Chairman. Thank you, Ranking Member. Um, today's sole witness is the United States Trade Representative, Mr. Jameson Greer. The committee has received your written testimony and it will be made part of the formal hearing record. Ambassador Greer, you have five minutes to deliver your remarks and you may begin when you are ready. Chairman Smith, Ranking Member Neil, and members of the committee.
▶ 0:27:58Thank you for taking the time today for this hearing. Uh, Chairman Smith, I appreciate your your opening statement and and the details of some of the effects uh that prior trade policy has had in your district and and Mr. Neil, I appreciate the work we've done in the past and your willingness to continue working with us. Last Wednesday, President Trump declared a national emergency in response to the large and persistent trade deficit that has built up in recent years.
▶ 0:28:21This deficit is driven in part by non-rescrocal tariffs, trading barriers, and other economic policies pursued by our foreign trading partners. President Trump imposed tariffs to address this emergency. These measures are aimed squarely at achieving reciprocity and reducing our massive trade deficit. This national emergency declaration and tariff action is the most significant change in US trade policy since we allowed China unfortunately to join the World Trade Organization.
▶ 0:28:48The American working class in particular has suffered concentrated losses from the so-called China shock and other adverse effects of past trade policy uh and the conditions that give rise to our massive trade deficit. The United States has lost 5 million manufacturing jobs and 90,000 factories since 1994. President Biden left us with a $1.2 trillion trade deficit in goods, the largest of any country in the history of world.
▶ 0:29:17The United States share of world manufacturing output declined from 28% in 2001 to 17% last year. In the fourth quarter of 2024, US manufacturing as a share of gross domestic product was the lowest it had been in 20 years. During COVID, we were unable to procure semiconductors to build our cars or materials for pharmaceuticals and personal protective equipment. During World War II, we built nearly 9,000 ships. Last year, the United States built only three oceangoing vessels.
▶ 0:29:48Our agricultural trade balance, which historically resulted in trade surpluses for our farmers, was in deficit the last two years of the Biden administration and likely will take some time to recover. These are all serious indicators of an economic and national security emergency. One important driver of these negative trends has been unfair, unbalanced, and non-rescrocal trade.
▶ 0:30:08This includes the effect of higher tariffs imposed by other countries on the United States, the effect of non-tariff measures that promote other count's exports and obstruct US exports, and other foreign economic policies favoring overp production and degrading America's manufacturing capacity. This lack of reciprocity is an important driver of our global trade deficit. and with particular countries. For example, the European Union can sell us all the shellfish they want, but the EU bans shellfish from 48 states.
▶ 0:30:36The result is a huge trade deficit in shellfish with the EU. We charge only a 2.5% tariff on ethanol, but Brazil charges us an 18% tariff. The result is we have a huge trade deficit in ethanol with Brazil. Our average tariff on agricultural goods is 5% but India's average tariff is 39%. You get the picture. Our trade deficit driven by these non-re reciprocal conditions is a manifestation of the loss of the nation's ability to make, to grow, and to build. And it's dangerous.
▶ 0:31:05And the president recognizes the urgency of the moment. On the very first day of his second term, President Trump issued a comprehensive memorandum setting out his trade policy direction. And over the past 10 weeks, he has executed on nearly all of these priorities. He has tightened tariffs on steel and aluminum, imposed new measures on auto and auto parts not made in the United States by American workers. On April 2nd, he declared his national emergency and imposed the reciprocal tariffs. The president's strategy is already bearing fruit.
▶ 0:31:35Over the past few weeks, a planned layoff for an auto production shift in Tennessee has been suspended. That shift continues to operate. Another automaker is hiring additional employees and expanding overtime to increase auto production in the United States. Companies have announced $4 trillion in new investment in the United States. Nearly 50 countries have approached me to discuss the president's new trade policy and explore how to achieve reciprocity. Several of these countries such as Argentina, Vietnam, and Israel have suggested they will reduce their tariffs and non-tariff barriers.
▶ 0:32:06These obviously are welcome moves. Our large and persistent trade deficit has been over 30 years in the making and it will not be resolved overnight. But all of this is certainly in the right direction. We must move away from an economy based solely on the financial sector and government spending. And we must become an economy based on producing real goods and services by American workers in our communities here. This adjustment may be challenging at times. This is a moment of drastic and and overdue change, but I'm confident that the American people will rise to the occasion as they've done before.
▶ 0:32:36I trust them. I trust that they can do this. I appreciate this committee's interest in President Trump's trade agenda. Though we may not agree on everything and may have some severe disagreements at times, it's my hope that our shared interest in doing what's right for the country will allow us to collaborate uh in the coming weeks and months. Thank you again for your time and I look forward to our Thank you, Ambassador. We'll now proceed to the question and answer session. I'll start with the vice chair of our committee, Mr. Buchanan. Thank you, Ambassador. Thanks for being here.
▶ 0:33:04USMCA did an incredible job and had a good chance to get to know you there and we missed Bob Lighheiser as well in that process. But let me just say being on the committee and being on trade for 10 or 14 years or whatever, we always seem like we come up short everywhere even with our friends like Japan. I like Japan. I do I've done business with Japan. Still do some business with my kids in with Japan.
▶ 0:33:32But you look at the trade deficits are monstrous and you look at the number you just said$1.2 trillion dollars uh in terms of trade deficit. Uh what are we going to do to change it? And I I look back over 10 12 years. It's Congress is dysfunctional as it relates to trade. We've done one trade deal. Maybe you might argue there was some supplements that were added but we're not in the business. We're not engaged, you know, and uh in terms of what's going forward. Now there's this discussion about uh be doing some trade deals.
▶ 0:34:02What does that mean? What is that process? Because the pro process I went through on the one couple of trade deals is ownorous and it takes time and effort a lot of effort by a lot of people to get one deal done let alone uh you know trying to you know let's say someone said there's 50 deals out there people have an interest what does that mean and how you what's the process for that? So, I I guess I'm just tired as Americans losing.
▶ 0:34:28And I, like I said, I do business in Japan and other places, but I just hate to see it. We're always coming up short on most of these deals. And I look at our local area in uh Sarasota and Florida uh in that region, and I look at tomatoes and vegetables, we're 600% uh surge or 600% the surge on us.
▶ 0:34:49and we come up and we've talked about that you know we worked on that you know uh last couple of three four years and it's there everywhere you look we're short and now we're here here we are today and where is this all going the process and what's your thoughts about how do we get to me idea trade is at the end of the day it's somewhat fair somewhat fair don't have to be perfect some of some countries maybe uh you might give them a you know smaller country work with them a
▶ 0:35:20little bit more. A lot of countries in Africa, it's diff, you know, it's one thing. Try to give them some advantage, but these bigger uh countries, they're killing us and they've been doing it on a long-term basis. So, as the ambassador moving forward on trade, what's your thoughts? Uh well, Mr. Buchanan, thank you. I I think that's the right way to be thinking about this about this.
▶ 0:35:42Um the the president has stated very clearly over the last few days that he is he is open to negotiate with countries that actually want to pursue reciprocal trade and get their trade deficit down with us or where we have a surplus give us the market access uh that we should have so we can treat them like they treat us and that it's it's better treatment all around. Uh that's certainly part of this. In the very near term, I can just tell you, you know, yesterday I had a meeting with uh my counterparts from the EU, from Korea, from Ecuador and Mexico.
▶ 0:36:10And that was after talking to the Senate for four hours in the morning. So there are a lot of countries who understand exactly what the problem is that the president has set out and are willing to talk to us and willing to negotiate. And so I think in the in the near term, there is an opportunity for these countries if they want to have more reciprocal trade to bring down their differential tariffs, bring down their non we're going to run out of time. Let me just ask you is when you talk about these countries and I heard there's 60 80 of them.
▶ 0:36:37There's a lot of them that seem to have an interest uh would want to do something but what do you what's your idea what that process is? I mean like I said it took 10 years do one trade deal here and what's your sense of what that process is going to be going forward to make that you get something negotiated then what? Well, so for example, in in the very long term for for countries that think they want a comprehensive trade agreement or something broader, that's a longer term conversation uh that we have with Congress.
▶ 0:37:05Some of that might require, you know, congressional action, of course, and we would want to be very tied in with you in in the very near term in terms of the reciprocal tariff. Countries are coming in essentially with a a paper, right? Or with a letter that they've sent me. I mean, Vietnam's a good example where they've just said, "Here areas where we think Let me just say because I got a few minutes. I agree.
▶ 0:37:24you know, hopefully that works out, but we do need to get back in the trade business in a serious way uh with the process that we've we have here in Congress because uh this might work for some deals, but not all deals. But we have to get serious about trade and at the end of the day, it needs to be fair. It might be a little one way or the other, but if we're buying their stuff, they need to be buying their our stuff. And that's very clear to me. And I I just feel so frustrated because I've watched this show for 10 years and we get little done.
▶ 0:37:54It's not Democrat or Republicans, it's both parties. We don't take the initiative on these fronts. Thank you. And I yield back. Thank you. Thank you. Uh I recognize the ranking member, Mr. Neil. Thank you, Chairman. Mr. Ambassador, you, your predecessor, Bob Lighheiser, and Katherine Tai, the eventual USR worked with Congress on USMCA. We had priorities.
▶ 0:38:18House Democrats worked with you to come up with what was a pretty good trade agreement. Again, almost universally supported in the House and the Senate. We had our priorities intentional enforcement loopholes, addressing access to medicines, improving labor and environmental standards, and more.
▶ 0:38:39We included novel sunset provisions to give all sides a predictable and fair way to reflect and if needed course correct in the trading relationship. Now the president has imposed global tariffs with purported objectives of leverage to negotiate new trade agreements. Are you seeking to negotiate comprehensive trade agreements that address the range of labor, environmental, and corruption concerns?
▶ 0:39:03Or is it to seek leverage in the future of addressing these trade deficits in a more unbalanced or arbitrary manner? We know that trickle down economics don't work, but that's what the administration seems to be doing. We're looking at tax cuts for wealthy people, aggressive deregulation, hollowing out essential government services.
▶ 0:39:28And let me with long history remind all when NAFTA was negotiated by this committee at that time the Republican position was you could not amend a trade agreement. No human rights, no labor provisions, no enforcement mechanisms. That's what brought about the demise of NAFTA and our desire mutually to renegotiate for USMCA. So this idea that this all started in January on January 20th is simply not true.
▶ 0:39:58These agreements are not going to be worth the paper they're written on. If we can say with a review of USMCA coming up next year that we're going to impose these tariffs in an arbitrary manner right now leading to layoffs and plant closures because of them. My office is being inundated with calls about people and their 401k plans. They don't know what to expect. trillions of dollars of market value being lost even as we meet. I understand the desire to address the issue of trade imbalances.
▶ 0:40:29It's important for all of us. But some of the suggestions have been clearly exaggerated as we've gone forward hyperbolic to be sure. We need to go back to what we did, Mr. Ambassador, with USMCA with a real solid negotiation that led to a desirable outcome. With that, I yield back my time. Mr. Chairman, thank you. The trade subcommittee chairman, Mr. Smith. Thank you, Mr. Chairman.
▶ 0:40:56Thank you, Ambassador, for availing yourself here today uh on such important matters and especially given the the context, the broader context of timing. I think uh I don't have to tell you these are important issues and I I'm grateful for your service and certainly your intent and desire to move our country forward in in in many ways. I I would say there's no such thing as stagnation in trade. We're either gaining ground or we're losing ground.
▶ 0:41:24And uh I think over the last four years, we lost a lot of ground. And during President Trump's first term though, we made astounding progress through the negotiation of USMCA, the China phase 1 agreement, US Japan trade agreement. These efforts unlocked new markets, strengthened supply chains, and and empowered cooperation with important partners. Over the last four years, however, the Biden administration's trade agenda veered from slowwalked complacency to non-binding frameworks.
▶ 0:41:52Let me be very clear, the world was watching then, as it is now. And it was watching as digital trade barriers, which disproportionately impact American companies, were built while USR actively withdrew from digital trade negotiations at the WTO and in the Indo-Pacific.
▶ 0:42:11The world was also watching as a growing number of countries blocked market access for American agriculture with no scientific basis and as the previous administration let negotiations with the UK and Kenya simply fade away. This was particularly concerning given Kenya stood to set an example for other AGOA beneficiaries which are capable of negotiating their own bilateral reciprocal agreements.
▶ 0:42:36Consumers, producers, manufacturers, service providers, and our partners expected more. I'm encouraged by the growing list of countries seeking trade negotiations with the United States, including the UK, India, Japan, and South Korea. I am encouraged to also have you as USR leading these discussions.
▶ 0:42:56It's clear President Trump has the world's attention, and it is up to his negotiators to ensure any agreements reached tear down the barriers affecting America's farmers, ranchers, and workers. While I do not expect perfection in the short term, we must find common sense solutions which level the playing field for our exporters, ensuring they receive fair treatment we have offered foreign partners, often unrescrocated, for too long.
▶ 0:43:21Over the last few months, our trade subcommittee has clearly outlined its priorities for trade enforcement and negotiations, I might add, in a bipartisan fashion. And I hope you will look to the subcommittee's work to inform your agenda moving forward. I expect strong collaboration between USR and Congress to create durable change in our trading relationships. During President Trump's first term, he teed up the agreements with the United Kingdom and Kenya. I am eager for these agreements to be brought to fruition.
▶ 0:43:49Ambassador Greer, could you elaborate on your engagement with these countries, Kenya and UK? How would you say you are ensuring our partners understand what progress is needed? Uh, thank you, Congressman. Uh, over the past month, I've had a number of conversations with my counterpart in the United Kingdom. Um, we've talked about non-tariff barriers in the UK. We've talked about ways to collaborate on technology. Uh, we've we've we've met frequently in person. We've had phone calls.
▶ 0:44:18We've had virtual meetings and we've discussed how to how to move the relationship forward on an economic basis. I've certainly expressed my concern that the UK has barriers especially in the a space that are very important for us. Um so that's been made clear to them. Um but th but those discussions are on a good footing with Kenya. I also had my counterpart trade minister from Kenya in town last week and we sat down in my office and we had a good talk and he said that he wanted to engage with the United States. He understands our concerns but he also understands the need to move forward. It was a very fruitful conversation.
▶ 0:44:48I look forward to speaking with him again. He wants he wants to work with us. They want to have some kind of an agreement with us. Okay. Thank you. I I want to say that USR is a very lean, agile, and effective agency. Simultaneous negotiations with 50 plus countries would require significant bandwidth and expertise as I'm sure you're aware. uh the chief IP negotiator, a role which has never been filled in the chief a negotiator, positions that Congress created in statute to ensure relevant issues important to the American people are addressed.
▶ 0:45:17Uh when would you anticipate the president will nominate these positions to fill these positions? And in the meantime, how is USR responding to the influx of requests and prioritizing negotiations? So, Congressman, we have a couple of deput of my deputies who have already been announced and they're doing their rounds on the hill or about to uh we have an a negotiator and a second deputy who are who are pending announcements. We're very close on that. So, we're happy about that.
▶ 0:45:42Uh in in the meantime, the nature of these negotiations uh you know, the other countries know what the trade barriers are that we're talking about and we're moving very quickly. I'm we're meeting every day with several uh you know trade ministers from other countries. The crack staff at USR is working very hard as well to put together what would make sense in terms of near-term agreements with respect to the reciprocal uh trade. Thank you.
▶ 0:46:06I I think it's important to note that oftenimes even if we have a trade agreement with a friendly country for example, we still need to stay on top of these things whether it's investor protections in Mexico or beef in Australia with the expectation of a level playing field. So, thank you again for being here. Look forward to the discussion. Thank you, Mr. Dogget. Thank you, Ambassador. I have a number of uh yes, no answers, and if you feel you cannot answer them, yes or no, just say you cannot, and I'll move on to the next question.
▶ 0:46:34The first of these, uh yes or no, uh the Trump tariffs will soon be levied on pharmaceuticals from abroad. I'd like to discuss that more detail with you, sir. Move. Is that true or not? Well, the president, he wants to he wants to get uh manufacturing production back here and so he's going to conduct an investigation to see what's appropriate in terms of tariffs. So, he hasn't decided to impose them as he said he would last night at the Republican fundraiser. He he said that he will impose them.
▶ 0:47:02Now, now what the extent of that is subject to reclaiming my time? Uh, a simple question, Ambassador, yes or no. Do you agree with the president's senior Trump advis trade adviser Peter Navaro that higher tariffs are tax cuts? Sir, I don't get involved in the tax discussions, but we know tariffs have a have a revenue effect for sure. You you think tariffs are tax cuts? I think I think that tariffs are an imposition on foreign goods that can protect American workers and American products.
▶ 0:47:31And again, yes or no. Do you agree with senior trade advisor Peter Navaro that as Americans watch their savings erode and the stock market losses approaching $7 trillion that what Americans need is I think we all need to work through this period as we try to reshore and get over the $1.2 2 trillion dollar deficit that you have to agree.
▶ 0:47:52Do you agree with Commerce Secretary Howard Lutnik uh that uh we're not going to reverse course no matter how much the markets implode and that these tariffs will be permanent? Well, the president has directed that we're negotiating with willing partners and that's where I'm keying my my guidance from. You uh just referenced the United Kingdom and you have claimed that these uh trade deficits require these tariffs.
▶ 0:48:17Uh is it correct that large Trump tariffs were imposed on imports from close allies like the United Kingdom and Australia even though uh we have a sizable trade surplus with each of those allies? There there's a global deficit and those surpluses should probably be larger because of the barriers they have. Again sir can you simply answer yes or no? Did we impose tariffs on allies with whom we have a trade surplus not a trade deficit? We impose tariffs on every country because of the So the answer is yes.
▶ 0:48:46even though you don't want to say it apparently. Uh let me ask you also about experiences during the first Trump administration because at that time uh there was uh discussion about the impact of the retaliatory tariffs from China on farmers and as a result of that retaliation there was a significant amount of farm welfare payments that were paid.
▶ 0:49:11We know this time that uh the tariffs and the retaliation are much broader like the Chinese substituting Brazilian soybeans for American soybeans. Uh will American taxpayers be asked once again to finance welfare payments to farmers that lose foreign markets? Yes or no? Uh it's not clear yet uh whether that will be necessary. Might have to and might not.
▶ 0:49:34Similarly, last time there were concerns about uh the selective nature and the exceptions that were made to these tariffs and it seems that those who hired Republican contributors, lobby firms did much better on exceptions. The whole exception process was criticized by the Government Accountability Office.
▶ 0:49:54Can I be assured that if one of my businesses uh hires a uh a Republican lobbyist and contributor who can get a table down at Mara Lago that they will not get an exception to these tariffs or an exclusion? There are no exceptions or exclusions for the president. All right. Uh you know, it's not one of my regular allies, but the National Taxpayers Union uh sent me a question yesterday, and I'll pose it to you as they did to me.
▶ 0:50:20They note that the United States has run trade deficits for 48 straight years, during which time the US economy has grown by 255% in real terms. That these decades of trade deficits have corresponded with increases in American wealth and household incomes that far exceed the progress in Canada, China, and the European Union.
▶ 0:50:42Uh do you think that this growth in American wealth as a result uh associated with deficits uh is something that constitutes an a national emergency? The giant and massive persistent trade deficit that Biden left us with is an emergency. It's not like the small deficits from the 60s when we had auto workers here making production. We've offshored all this stuff uh Mr. Dog and and we are really in an emergency situation and we're not spending my time.
▶ 0:51:09uh we seem to have done much better than in the guilded age which the president prefers. I would just say that on the eve of his inauguration, the president promised to bring prices drastically down and there's nothing that you've said in your answers or non-answers to me today that will give Americans any assurance to believe anything other than that their prices will continue to soar and their savings will continue to shrink. The president's lies continue to cause the American cost the American people dearly. I yield back. Mr.
▶ 0:51:38Kelly, thank you, Chairman, Ambassador. Thanks for being here. There's a quote in the movie Torah Tour to Tor to uh from Admiral Yamamoto, and he says, "What I fear is that we have awakened a sleeping giant. Thank God we've looked around at what's happening in the world twice. America has gone to World War to save the world. We did it in World War I. We did it in World War II.
▶ 0:52:04But after World War II, the people that we saved and some of the people that we fought against were absolutely devastated. They had no way to build themselves back up again. So what did America do? We opened our markets because we have always been the most generous people in the world and we're always the first responder. No matter what happens anywhere in the world, who's there first? It's always the We have seeded so much market share.
▶ 0:52:34We have rebuilt for most of the world an economy that they never could have achieved on their own. Now we're facing a situation with all those who we've helped don't like us playing in their market. They love coming to America, but they don't want America coming to them. They make it very hard for us to do trade with them, whether it's through tariffs or barriers, which our manufacturers can't meet.
▶ 0:53:04And we sit today trying to make this a political event instead of a country saving event. I come from a little town called Butler, Pennsylvania. Butler at one time was the home of a steel mill. Still is. We built railroad cars. Pullman was there. We built the first Jeep. We were known as that that town. Blueco collar town.
▶ 0:53:34People get up in the morning, work hard, and what they look for is that chance to get some overtime. Last summer, we became known as the town the attempted assassination of Donald Trump. We're resilient. We always bounce back. we always will bounce back.
▶ 0:53:55And I got to tell you, uh, I have some statements from from the people that actually work every day, get up and go to work, and they're they're looking at a at a market that they are constantly losing market share in. uh and and they wonder they wonder who is going to stand up and do something. Who's finally going to talk about the real problems in America and quit talking about the stock market. Stop talking about all these other things because I've watched it go up. I've watched it go down.
▶ 0:54:25I've watched it go sideway. I watch it where some people say, "I don't like to play in that because I don't understand how it works." Here's the one thing I do know, and you know it, too. It's all about work. It's all about market share. Jamie Sichek from UAW 3303 uh we we were in in a dire situation not because of foreign competition that hurt us a lot. We went from a steel plant that were 7,000 people down to there's about 1300.
▶ 0:54:51We produced something called grain or electric steel the only producer of that product in America and we were in danger of losing it because we had an administration that had had a blind eye and a deaf ear to what they were giving up. Also, Jim Winnings, who operates a a factory down in Mars, Pennsylvania, uh shares his view with me about how much market share they've lost.
▶ 0:55:14Um, so I'm amazed when we try to turn this into a political battle and not a USA saving grace battle where we finally wake up. And just as Admiral Yamamoto feared in World War II, fear, all we have done is to awake a sleeping giant. We have given away so much of our market and been denied been denied access to other markets.
▶ 0:55:43We are the first responder every time something goes wrong in the world. I would just like to see the world treat us with the same respect as we have treated them. Level the playing field. That's all the president's asking for. Level the playing field. Don't make it impossible for us to play. Don't tell us, "Yes, you can come here as long as you meet these standards," knowing that the standards they've set, we can't meet. Yet, we still allow them to come in.
▶ 0:56:10I sell Chevrolets, I sell Hyundai's, I sell Kia, I sell Toyotas, and I sell Msubishi. People say, "Why is it that you have to do that?" I said, "To make Most of these companies have factories in the United States and they have come here to help build, not to tear down with American workers. I really applaud what you're doing. I applaud the president of the United States for having the backbone to stand up and fulfill a pledge that others have made before him.
▶ 0:56:38They've stood on the floor of the Congress and talked about this and railed about what's happening to our markets and done not a damn thing about it. He stands up into a stiff wind and says it's going to hurt for a while until we get back to where we need to be. It's always should be America first. And anybody that doesn't think that way, please tell me what the hell country you think you're going to take your wife and your kids to and your grandkids to. There is no other place in the world like America. And we have been so generous and so welcoming.
▶ 0:57:05And as I said earlier, we saved the world twice, now it's time for us to say to the world, if you want us to be the first responder, you can't keep stealing our market and not allowing us to play in your ambassador. You've got a hell of a task in front of you. The biggest task you have is this has become a political agenda and not a saving the United States of America. America first, please, for everybody. I am red, white, and blue. I could care less whether you're a Republican or a Democrat. Just wake up and understand that we cannot stand to lose any more market share.
▶ 0:57:34And we better be tough on this one or we turn our backs on the future. And I've got 10 grandchildren. They're relying me to stand up and hopefully other members of this committee will do the same thing. This is not about tearing Trump down. This is about building America up. Thank you. Okay, Mr. Thompson. Thank you, Mr. Chairman. Mr. Ambassador, thank you for being here. Um, I believe in our great country. I love our country. I put a uniform on and served in combat for our great country. And I'm not here to talk about politics.
▶ 0:58:04I'm here to talk about policy, trade policy today. And both the chairman and the ranking member talked about the US MCA. I was honored and privileged to be on that negotiating team when we negotiated that bill. It was signed into law by President Trump in 2019. And at the time, the president said it's the best trade deal ever. And I'd like to submit this article uh into the record explaining what he said without objection.
▶ 0:58:32Now, the president is shredding that deal, creating chaos in the world economy. The numbers speak for $3,800 higher prices for American consumers, 900 laid off US auto workers, trillions in lost retirement savings, tens of billions in lost agricultural sales for farmers.
▶ 0:58:55The Trump administration says that the tariff taxes will raise $6 trillion over 10 years, which would be the biggest tax increase in our history. the um message coming out of the administration isn't at all coherent. I don't I'm having trouble my constituents are having trouble understanding this.
▶ 0:59:22You put he puts a a tariff on some 180 other countries. Uh no tariff on Russia or uh Bellarus or North Korea. Uh and he's t he's putting tariffs on UK, Ukraine, France, an island that only has penguins on it, but not a country that is clearly working against us and has a trade we have a trade deficit with.
▶ 0:59:53It's confusing uh in every instance. He says that tariffs are here to stay to support domestic manufacturing and to raise revenue to pay for tax giveaways to people who really don't need that tax giveaway help. And at the same time, he's saying that tariffs are part of a negotiation to secure better trade conditions and that this will be over soon.
▶ 1:00:18I'd like to know which it is because uh it's not coherent at all. And I'd like to submit for the record documentation of his uh confusing uh priorities. And Mr. Ambassador, I'm at a loss to what I tell my constituents. As Mr. Neil said um about his constituents calling, my phone's ringing off the hook. I'm getting emails every day. I see people on the street, they're asking.
▶ 1:00:46They want to know a $6 trillion tax on the US economy. What What do you tell people uh when uh when when when they ask that question? $3,800 higher prices for the average American family. What do I tell my constituents when they ask that question? The major agriculture I have an a district.
▶ 1:01:08my major agricultural producer just lost all access to the number one foreign market to which they uh export their product. Not only has Canada closed the market, Canada has taken every US product that my constituents send there off the shelves and off their web pages. And how do you what do I tell them when they say, "I've been working decades to build that market share and it's all gone." that quick.
▶ 1:01:38What do you tell them? What do I tell uh my constituents who say, "I have a container uh that it's already paid for of products coming in and I will not be able to afford the tariff uh when that container lands." What do I tell my constituents who say we've lost trillions of dollars in our 401ks? H how do I make that up?
▶ 1:02:03What do I tell my constituents when they say, "My kids are getting ready to go to college and my 529 is in the dumps. How am I going to pay for my kids education?" Wait, things are going to get better. Their kids are going to school now. They can't wait for stuff to get better. And pharmaceuticals, we had a a hearing in the subcommittee yesterday on the on pharmaceuticals.
▶ 1:02:29And this tariff war is pricing pharmaceutical consumers out of the market. A 25% tax tariff on pharmaceuticals. How are my constituents going to be able to afford their medications? This is doesn't make any sense.
▶ 1:02:48This is an unprovoked uh tariff war that's costing us a lot of money with no confusing answer as to what we're doing, where we're going, or when we're going to get there. I yield back. Mr. Schwher. Um thank you, Mr. Chairman. Uh Mr. Ambassador, um just so I can clear my head, um what's our trade balance with North Korea? I don't think we have any trade. There's an there's an embargo.
▶ 1:03:17a lot of those countries have embaros on and that's so so the rhetorical thing of you didn't tariff these countries that we don't trade with them you know but but there's the problem is um you know sometimes our rhetoric had doesn't have any basis in fact um Mr. Ambassador, the folks sitting behind you, is is this your team? This is this our congressional staff who's been up meeting with all your Okay. So, that's congressional staff.
▶ 1:03:40Where I do have a concern, let's say both the left and the right, we agree we want to move as much robustness back to the United States. We, you know, whether it be a manufacturing renaissance, whether it be in the service industry, those Okay. when you're doing your formulas, when you're advising the White House, others, do you spend some time on infrastructure issues?
▶ 1:04:06Um, one of my personal fixations is um pharmaceutical manufacturing just looking at the steps in these things. Um we actually had testimony in this room two years ago and it was part of the discussion was okay we'd like to make precursor inputs into you know um small molecule drugs except it produces some really nasty toxic byproducts and the United States doesn't have mitigation we don't have high ultra high
▶ 1:04:36temperature incineration those things so you want to build a policy to redomicile pharmaceutical manufacture ufacturing in the United States. Do you with your staff say, "Oh, but guys, we don't have the infrastructure mechanics to deal with the byproducts, the EPA permitting process to actually get the permits.
▶ 1:04:59Maybe we should approach Congress and say, "Hey, um, guys, I need you to help us get these things so we can actually, whether it be through tariffs or other incentives, move them." Do you spend time analyzing the infrastructure realities we have to actually be able to produce these So yes, Congressman, AB, absolutely.
▶ 1:05:23And when we talk about trade policy, which is in the news today because of the president's recent action, we're also talking about favorable tax policy, which is important for pharmaceutical production. We talk about permitting and environmental policy. All of these things go together. That's why President Trump had such an successful first term in terms of the economy because all of it moved together and we talk about that. So what's happened in the last week? Would I find that somewhere? Look, in many ways I'm finding myself I support the ultimate goal.
▶ 1:05:53I'm just wondering if the sequencing has been done with the details that are necessary to make it and and then I've been waiting for the team to provide people like me the input saying David I need you to get off your backside and we need um this on permitting reform or we need this on certain regulatory issues and I been I haven't seen that input yet on do you see where I'm going is if this is the ultimate goal
▶ 1:06:23how do we get there is it straight through a terror regime or do we have to have our series of sequencing before this actually happens I think we certainly would welcome Congress supporting the reshoring of manufacturing. I think unfortunately during the last uh administration we saw a lot of studies by the Biden administration about how to reshore pharmaceuticals which which is valuable but we could kind of do studies for years and years and never reshore this. So you have the information. So you have the study.
▶ 1:06:51So you know what we need to do and and the president can do what he can do, right? He doesn't have the power of the purse, but he he can create incentives to drive people. This is beyondu. Even the infrastructure mitigation, you know, it's not enough if I to say the company wants to start get it back here in our country. They can't get the permit. And that's why we're working closely with other uh economic cabinet members. We're talking about the importance of this. And I'll tell you, uh, Administrator Zeldon and others, they're out there.
▶ 1:07:21They're trying to expedite permits. They're trying to make sure that regulations are appropriate to allow the kind of, uh, you know, reshoring we need to. So, Ambassador, what do you need from us? What can we do that the ultimate punch line here is what do you need from those of the members of Congress who actually support the ultimate goal? Little concerned about the path, but ultimate goal. What do you need from us? And please bring that to us so we can actually do our I I have plenty of ideas.
▶ 1:07:49I'm happy to talk to the White House Office of Legislative Affairs about about that. I think there's a lot Congress could do if they would like to. Um we look forward to those documents. Thank you, Mr. Master. Thank you, Mr. Chairman. Mr. thank you very much. Uh Mr. Chairman and Ambassador Greer. Um welcome to the uh committee. Thank you for all your service.
▶ 1:08:10Um, I just have a a direct question because I'm I'm a little puzzled u being a great James Bond fan. I was kind of wondering what this whole deal is to Russia with love and uh why you know as has been pointed out that on April the 2nd the president excluded Russia, Bellarus, Cuba and North Korea from the new
▶ 1:08:40global tariff. Uh the Treasury sector said Russia wasn't on the list because they already imposed sanctions to prevent most USRussia trade making higher tariffs unnecessary. U question is kind of twofold. Is that the case with Russia, Bellarus, Cuba and North Korea?
▶ 1:09:08Uh while trade in goods has decreased, trade with Russia is still significant. Uh last time I checked, it's like 3.5 billion, well above the volumes of trade for many smaller countries that my colleagues have already been through that are impacted by this.
▶ 1:09:30So, first, was this an oversight or is the president trying to reinvigorate trade with Russia? So, there's no effort to reinvigorate trade with Russia. Congress did the right thing a couple years ago and revoked permanent normal trade relations with Russia. So, put in the bad category. And so, Bellarus, Russia, North Korea, they already have their own high tariffs already in a category that Congress has established. Well, it doesn't matter. They're not part of this. It it does matter. They already have these high tariffs. they don't have permanent normal trade relations.
▶ 1:10:00We have normal trade relations with these others. Um I and I think if there So why are the penalties that much more why are the tariffs that much more higher on other country and allies than they are in Russia? Because we're already doing enough with Russia. No, it's because in the sanctions law there's always an exclusion for agricultural products. And I think that's the only type of trade we really have with Russia. But all of those folks, they're sanctioned. They're subject to embargos of one type or another. Congress revoked permanent normal trade relations. And that's that's certainly the right answer for those folks. should not have normal trade relations with those countries.
▶ 1:10:30Well, let me ask you this then. Uh would you commit here that if we see trade increasing from last year that USR will take action to increase tariffs on Russia? Oh, I'm happy to monitor that and advise the president accordingly. I agree with you. I'm sorry. What? I'm happy to monitor that and advise the president accordingly. What does that mean? You're going to monitor that? Well, you asked if we would if we would see if this would change. If we would see if the trade level would change. I'm agreeing with you. I'm happy to see if the trade level should change.
▶ 1:10:58If it does increase, you will add additional tariffs. Well, it's the president's choice, but I'll advise him and I'll I'll say this is affecting the trade deficit. You should consider this. So, does that mean you would advise him to raise the tariffs with Russia? Well, I don't dibly give out my my advice to the president out in public.
▶ 1:11:16Um, but I I agree with I'm sure the American people would love to know and as with members of Congress, I mean, you got to you got to kind of admit it is just if you if you casually follow the news, you're not a member of this committee and the relationship with with Russia is kind of bizarre in terms of what it is between President Trump and President Putin and why why this relationship exists.
▶ 1:11:44So you imagine uh I don't know have you ever been to Auggie and Race? No, I haven't. You should. It's a great spot in East Harford. Uh it's right next to Pratt Whitney aircraft, etc. And they're deeply concerned about this and always want they always say, "Hey, what's going on with Russia?" And what's going on with the president and Putin? So I'm going to be able to tell him, "Don't worry.
▶ 1:12:11I spoke with Ambassador Greer and currently Russia's apparently paying enough. They're they're their their sanctions already are sufficient. But if we see greater activity and great trade amounts, we're going to make sure that tariffs are levied on them. Is that a fair thing to say? Well, on the last part, I can't make the president's decision for him, right? I mean, but you would recommend that you would increase tariffs on them.
▶ 1:12:40Well, I'm not going to disclose my recommendations. So, we're not going to recommend we're not going to say, see, at a rays, they would say, "Hey, come on. You're BSing us now. We know what's going on here." But, uh, with that, thank you, Ambassador, and, uh, appreciate your time. I yield back. Mr. Le Hood. Thank you, Mr. Chairman. Ambassador Greer, welcome back. um thank you for your prior service under the last Trump administration and all the work you put in on USMCA and uh happy to see you in this new position.
▶ 1:13:11I wanted to uh talk about agriculture um and get your take on how tariffs affect agriculture. My district that I am proud to represent, it's the 10th largest a district in the country in terms of corn and soybean production. Uh the number one industry in the state of Illinois is agriculture. People are surprised by that. Uh Illinois has led the nation the last 12 years in soybean production. We've been second in corn production the last six years.
▶ 1:13:37And my district uh we load up a lot of commodities on barges on the Illinois and the Mississippi River. They go down to New Orleans. They get offloaded and they go all around the world. About 40% of the corn and soybeans in my district uh again go to um places all across the globe. And so markets and customers are are very very important.
▶ 1:13:58And um I will just say at the outset that I appreciate what President Trump is doing in terms of addressing longstand long-standing trade deficits and bringing down barriers to trade and also uh your commitment for looking for new trade deals and energy negotiations to address tariff and non-tariffs uh across the globe.
▶ 1:14:19Um, but as I talk to my farmers, there's a lot of anxiety, a lot of stress, uh, a lot of uncertainty because when we get into a trade war, usually the first pawn in the trade war is agriculture. And as we look, uh, at the timeline and chronology moving forward, um, Ambassador Greer, what would you tell my farmers in terms of that uncertainty and anxiety that they're feeling right now? Well, the the first thing to note is that uh almost all countries have announced that they're not going to retaliate against the United States.
▶ 1:14:49Obviously, we have China that has made its own choice. They've always given us a hard time. They've always limited our access over there and they're doubling down on that path. That's an issue of Chinese agency. Indonesia, India, so many other countries have affirmatively said we're not retaliating. And those are actually many of the countries that are coming to us and saying we're willing to take down our tariffs. Vietnam unilaterally decided to reduce its tariffs on on apples, cherries, certain corn products, ethanol, etc.
▶ 1:15:15So, we're already seeing the kind of movement we would expect and that's something that I think is an important message to our farmers. Thank you for that. Um, I want to switch topics uh to digital trade and I believe we have a tremendous opportunity in digital trade and uh the United States must lead in setting global rules and standards. But we can't allow non-market adversaries like China in particular to set these standards and further further manipulate the digital trade agenda.
▶ 1:15:42Unfortunately, under the Biden administration, we seated this authority and we've seen the consequences of discriminatory policies hurting US innovation. Um, I think we can be aggressive working with our like-minded partners and allies to build on the progress made uh during President Trump's first administration, including the digital agreement with Japan and the robust standards set in the digital chapter of USMCA, which is in my view kind of the gold standard for future agreements.
▶ 1:16:10What can you um say today, Ambassador Greer, and how you view the expanding US leadership in digital trade moving forward in this administration? Well, I think it's a huge comparative advantage that we have. Our digital uh commerce companies and digital trade companies are the most competitive in the world and and they're competing with ones from China. And in that compet in that competition, we have to win. And if I have other countries discriminating against our champions, that's bad for America. It's bad for companies and workers and it's bad for the world.
▶ 1:16:40And I know we're having a national conversation, you know, politically on how to regulate, you know, digital tech, etc. But in no case can we allow discrimination to undermine our competitive advantage here. Thank you, Ambassador Greer. I yield back. Thank you. I now recognize Mr. Davis for five minutes. Thank you, Mr. Chairman, and thank you, Ambassador.
▶ 1:17:02It is important that the executive administration respect and recognize that Congress has authority over trade agreements and its purpose is to guide and are direct the administration on the content of that agreement.
▶ 1:17:19Unfortunately, what we have seen from the Trump Musk administration in the trade and tariff space over the past month has been anything but comprehensive, well balanced, and measured.
▶ 1:17:33In fact, the president's recent approach to advancing his America first trade policy has been confusing, inconsistent, and at times even Uh, Ambassador Greer, I represent companies in the vehicle supply industry that assemble and produce parts for the industry.
▶ 1:17:59The vehicle supplier industry employs more than 930,000 people directly and 4.8 million individuals across the country representing the largest sector of manufacturing jobs in the United States.
▶ 1:18:22Tariff impact on the automotive industry is massive and may result in shutting down businesses within the automotive supply chains which will harm the US economy as a whole. The automotive supply chain is not agile in its ability to make changes.
▶ 1:18:44However, the motor vehicle part sector and many others have adjusted supply chains to support more regional production. My question is since it would take years to adjust production and supply chains back to the US.
▶ 1:19:05In the meantime, the auto sector will be hit with multiple layers of tariffs that will soak up any free cash that could be used for the very investments in the US that the administration is seeking. Is the administration planning any relief for auto parts suppliers and the auto industry?
▶ 1:19:33And what other help can the government provide to these suppliers due to the most recent changes in So, Congressman, uh the the autos action is under the Department of Commerce, but I'll make two brief points. First of all, right now, if the parts comply with USMCA rules of origin of the agreement we all agreed to five years ago, they continue to come across duty-free. Um, so so that's a good development.
▶ 1:20:00And second, the United Auto Workers are huge supporters of the action on autos and auto parts. They put out a long statement supporting this long overdue issue. We have Chinese vehicles flooding global markets. The only reason they're not in this market is because President Trump put a tariff on Chinese automobiles in 2018 and the Biden administration kept them and put them in place.
▶ 1:20:20It's really critical that we protect our auto industry and the auto workers understand that we've made we we've accounted for parts that have US content and content from Canada and Mexico and we have to be very deliberate about doing this to save this industry. Thank you.
▶ 1:20:33And let me ask you, have you conducted an analysis on the net impact of tariffs across different sectors of the economy and and what steps is your office taken to mitigate negative employment effects? So with respect to so we we have a lot of historical data about tariffs.
▶ 1:20:56For example, the International Trade Commission uh they put out a report uh following the Trump uh first term tariffs and they found that um there were positive effects on uh you know domestic production in terms of employment and and better profits for domestic production. Uh we know in the first term when we put tariffs in place um inflation went down, unemployment went down and real median household income went up.
▶ 1:21:20uh we expect that with you know good energy policy, good trade policy, good tax policy, good peritting regulatory processes, the this can all rise together to again lead to a increase in real median household income for Americans. Thank you. Thank you very much, Mr. Chairman, and I yield back. The gentleman yields back and now recognize Mr. Estus for five minutes. Well, thank you, Mr. chairman and uh thank you Ambassador Greer for joining us today and taking time out of your schedule to meet with us.
▶ 1:21:50Um ambassador I just welcome you again to the Ways and Means Committee u you know which which has the sole jur sole jurisdiction for trade issues in the house. Uh it's great to have you here working with the administration um that prioritizes free and fair trade unlike the previous administration which placed pretty much zero emphasis on trade enforcement and on new deals with foreign nations uh in effect putting America last.
▶ 1:22:17I represent Kansas fourth district capital of the world which is a microcosm of the United States. We have large aerospace manufacturing corps in Witchah as well as other manufacturing operations and a widespread agriculture base in the surrounding rural counties. This cross-section of the country every day works to feed, clothe and provide energy for the entire world. Additionally, skilled workers manufacture airplanes and aeros aerospace components, build computer instruments that power our devices.
▶ 1:22:45And it's an understatement to say that our district benefits from free and fair free and fair trade because when Kansas compete on an even term, we win. The aviation industry has benefited from historical zero for zero tariff with foreign nations since the 1980s. Nearly every single airplane around the globe contains at least one component made in in Kansas. In contrast, our agriculture sector faces stiff stiff bar stiff barriers with foreign nations.
▶ 1:23:11As illustrated in your testimony, uh, ethanol product produced in Kansas faces a steep 18% tariff in Brazil, while the same Brazilian product is only charged a tariff of 2 and a.5%. This type of unfair, excessive tariff on US exports is undefensible. Uh, because of this, I support the administration's efforts to reduce the tariff barrier placed on US products by foreign competitors.
▶ 1:23:36and I'm pleased to see the number of countries 70 plus or so that um have mentioned that they want to make a deal. I'd also like to discuss some non-tariff barriers that functionally disadvantage the US in comparison to our trading partners. Uh I've been a vocal opponent of digital services taxes DSTs. Uh these extr territorial taxes enacted by in many countries including France, Canada and UK are highly targeted on you US businesses and in innovators.
▶ 1:24:02Many of my colleagues agree that DSTs are a revenue grab by countries that restrict technology uh innovation and envy American companies that are successful in this space. Additionally, in the re recently released 2025 national trade estimate report on foreign trade barriers, I was pleased to see the USDR include Germany's extraterial extr territorial assertion of retroactive taxes known as the section 49.
▶ 1:24:28This law has been dormant for the past hundred years dis but disproportionately targets us businesses. Uh these examples aren't from our adverteries. They're from our friends. And these are just a few examples of why it's so important to level the playing field and open markets for American manufacturers and producers. The very effort that you're trying to put in right now. Um regarding Germany section 49, I believe reaching a resolution on this issue is important.
▶ 1:24:53uh in consulting with Treasury and IRS, it's my understanding that they've engaged with some effective tu some affected taxpayers and German officials on this issue, but yet to be resolved. What's your strategy in terms of working on this issue with Germany and and will you work with me and my staff and and the committee as we pursue resolution for this issue? Um, first of all, I always like talking to you, Congressman, because, as you know, I lived in Witchah for two and a half years and served at the air base when I was in the Air Force and had a child born there.
▶ 1:25:23So, I have a we have a a nice connection there. Um, I I will work with Secretary Basant on this issue with with section 49. I've had some good interactions with my German counterpart in the past couple of weeks, and we're happy to work with you on this to see what the best way forward is. Yeah. Well, thank you. And I I know some of that crosses over as you mentioned with with Treasury Secretary and and the issues there.
▶ 1:25:44And there's so many things moving on in in your direct sphere of influence with all activities trying to make sure that there's free and fair trade for American companies and American competitors and and I just applaud your efforts in helping make uh putting America first in these efforts and thank you and I yield back. Thank you. Gentleman yields. I now recognize Miss Sanchez for five minutes. Thank you.
▶ 1:26:06As the ranking member of this committee's trade subcommittee, I want to say a few words about President Trump's latest scheme, his so-called reciprocal tariffs. Let's start by making one thing perfectly clear. These tariffs are not reciprocal. But don't just take my word for it. According to the Wall Street Journal, the president's tariff scheme is not reciprocal, nor is it based on measuring foreign trade barriers.
▶ 1:26:32Before getting into Trump's latest scheme, I just want to note that I recently returned from a NATO bureau meeting and I witnessed firsthand how President Trump's chaotic trade decisions have damaged our global leadership with our allies. And it's appalling to see how Trump is treating our friends and allies compared to how he's treating our adversaries.
▶ 1:26:58It was mentioned that under this tariff scheme of Trump's, Russia gets a free pass while our allies including those who stood with us after the terrorist attacks of 9/11 are hit with increasing tariffs. Russia's tariff rate is 35%. And we have hit our trading partners with far higher tariffs. It's sad to say that our NATO allies don't trust us anymore.
▶ 1:27:23So his scheme isn't just damaging our economy, it's actually undermining our long-standing security partnerships around the world. And in addition to undermining our relationships with our allies, Trump's scheme imposes randomly high tariffs on numerous countries, including our FTA partners. For instance, under the Korea US Free Trade Agreement, Korea eliminated tariffs on most goods from the United States.
▶ 1:27:49Last year, Korea's effective tax rate for goods imported from the United States was less than 1%. Yet, Trump has imposed a 25% tariff on South Korea. Trump repeatedly insisted that he wanted to impose the same tariffs on other countries as they impose on us. And I want to read a quote from the president. I'm quoting him on trade. I have decided for purposes of fairness that I will charge a reciprocal tariff.
▶ 1:28:17Meaning whatever countries charge the United States of America, we will charge them no more and no less. But as we now know, that is not true. That is completely false. And because it isn't true, the Trump administration came up with a fake formula to justify this tariff scheme. Now, it doesn't take a genius to figure out that the trade studies called for by the president in January and the so-called reciprocity rationale of his latest uh trade scheme are completely bogus.
▶ 1:28:48It's made up. To understand why Trump is pursuing this crazy scheme, you need to understand his mo. First, he threatens a huge tariff. Second, he tries to use those tariffs as leverage to extort countries, many of them are allies. And third, he declares anything that they promise as a huge victory, even when it's an insubstantial deal meant only to appease Trump and his cronies. And fourth, repeat this corrupt practice over and over again.
▶ 1:29:16This is all intended to distract and divert the media's attention. I urge everybody to take a step back from the daily chaos that comes out of the White House to consider the bigger picture here. Trump should not fool around with the economy. American families should not be forced to pay higher prices to fund tax cuts for the rich. Which leads me to suspect that these tariffs are not temporary in nature because they need the revenue to give tax cuts to the wealthy.
▶ 1:29:45Trump shouldn't fool around with workers. Workers aren't pawns. Instead of this chaos, workers need robust industrial policy paired with workforce development and targeted tariffs to reshore certain American industries. Yet, the president doesn't have a comprehensive plan to do any of that. Trump shouldn't fool around with our democratic values. Trump's trade agenda is all being done behind closed doors. There's no transparency. Backroom deals are corrupt and they're anti-democratic.
▶ 1:30:15As members of Congress, we need to reassert our voice in the face of Trump's insane trade policies. Republicans need to stand with Democrats and decisively call out Trump's harmful tariff scheme. As I said in our previous hearing, House Democrats are open to new trade agreements with partners that are committed to advancing workers rights, protecting the environment, defending human rights, and safeguarding our intellectual property.
▶ 1:30:42Unfortunately, the president's corrupt tariff scheme is trampling on our Constitution by sidelining Congress's jurisdiction over trade. Let this administration's record in trade policy and elsewhere serve as a grave warning. And there is no denying that this president and his cronies are rapidly working to consolidate power. With that, trade representative um uh Greer, I have a couple of questions for you.
▶ 1:31:08In the April 2nd announcement, did the president issue tariffs on the European Union, Japan, and South Korea? Yes. Yes. Every country. Okay. I don't need an explanation. I just need a yes or no answer. Did the president issue any new tariffs on Russia, Cuba, North Korea, or Bellarus? They already have sanctions embargo, so no. No. The question was yes or no. Um I recently read news reports indicating that you are the new head of the office of special counsel. Is that correct? I'm the acting head. That's correct.
▶ 1:31:38Um and you currently serve as USR with the trade wars. Don't you think that your time should be focused exclusively on trade? And isn't it a gross conflict of interest to be the body that oversees your own agency and position? Oh, I certainly would recuse myself if if there was an issue involving Well, I think it's ridiculous that you hold both and I urge you to resign as special counsel. It makes no sense for you to have oversight over yourself. That's not true oversight. And with that, I yield back.
▶ 1:32:08Members, time is expired. I now recognize Mr. Smucker for five minutes. Thank you. Excuse me. Thank you, Mr. Chairman. Hello, Ambassador. Um, I want to thank you for uh the work that you're doing, for the change that you're working uh to bring about. And I also want to point out the differences that we've seen in the past four years of the Biden administration compared to the four years of the Trump administration, specifically in regards to trade.
▶ 1:32:36I think Democrats and Republicans alike uh were very unhappy with the past uh approach to trade basically which was to do nothing uh to do nothing to try to generate new agreements and to not do nothing to try to open markets up uh for American manufacturers to do nothing to try to bring jobs uh back uh uh to America.
▶ 1:33:02And that's just in such stark contrast to what we saw during the previous Trump administration. He had a bold and effective approach to trade, one that really delivered prosperity and brought our trading partners uh to the table. So, we appreciate the work that the president did during his previous administration. We appreciate the work uh that uh he's doing and that you're doing uh on trade.
▶ 1:33:27It's a refreshing change to what we've seen over the over the past four years and we trust the president to get this right again. We we believe that we're seeing already the um the impact uh when you have tens you know I don't know how many we're up to now but countries uh coming to the table that have for a long time had uh tariffs in place for our goods but we weren't doing the same.
▶ 1:33:52And so the idea of uh reciprocal trade I think is a great one that I can tell you uh the American people in my district, business owners in my district uh uh very much support and they support the goals uh of this administration to bring back manufacturing jobs uh to the country uh to bring back that investment uh in the country and then to open up markets uh to uh to our great
▶ 1:34:22uh American businesses. So, um I I will so I will also say this. Um many of those business owners who um uh love what the president is trying to accomplish are feeling a little consternation. Um they're concerned about what this, you know, how we're going to achieve what the intent is here.
▶ 1:34:49um they still believe in what the president is doing as I think every at least Republican member here uh agrees with that. But I just want to give you an opportunity if if you don't mind to just sort of expand maybe on some of the things um that you've said previously, but with that sort of audience in mind, what would you say to um for instance, a copper manufacturer in my district who you and I have spoken about previously, but um this is impacting their business
▶ 1:35:19in a in a big way. Um, and uh, what would you say to other businesses who are in a similar situation? And maybe how would if you could just paint a picture of what success will look like here again in the context of the successes that we've seen with USMCA negotiated previous administration, all that, but take us out a few months, take us out a few years. Uh, what what is the what is the end goal here?
▶ 1:35:46We I mean we we think I think I know what that is, but I'd love to give you a chance just to uh expand on that. What will success look like? How will that help uh every American business? Thank you. Uh thank you, Congressman. I think we'll find that American businesses are much more competitive when they have open markets overseas. Uh people talk about the high cost of doing business in America and manufacturing in America and growing in America.
▶ 1:36:13But when we cannot access foreign markets or we face barriers overseas and not just tariffs but also all the non-tariff barriers that we've outlined in this 400page book uh that that increased costs and it makes it difficult to be competitive globally and even domestically. At the same time we have foreign producers who receive subsidies. Uh they have countries where economic policies depress domestic demand. They make more stuff than they can consume. They send it here.
▶ 1:36:38And so I think what we're going to see in the near term, we're going to see a handful of partners who open their markets more to us. And it makes it much easier and much more competitive economically to have manufacturing here, to grow products here, to process them here, and export them to the rest of the world. So it's it's a virtuous cycle that you create uh when you create a situation where you have open markets uh you create broader economic policies whether it's good tax policy good energy policy to to give you the tailwind you need. We have to reshore manufacturing.
▶ 1:37:08This is an important way to do it. We can have tariff protection as we as we get rid of the trade deficit reshore manufacturing and as other countries open their markets they can potentially have a different arrangement that helps us as we try to have reciprocal trade and get rid of the deficit and get back to being a producing economy. It's where we need to be. Well, thank you again for your work. I'm out of time, but uh appreciate your work and we're with you. Thanks. Thank you. And now recognize Miss Su for 5 minutes. Thank you, Mr. Chairman. Uh welcome, Ambassador.
▶ 1:37:35Uh it was a pleasure working with you on US MCA. Uh and uh for what it's worth, I still believe that USMCA is uh gold standard for our trade um agreements that we make. um it was done so with with Congress uh and and the executive and that should be the standard. Unfortunately for both of us, President Trump has decided that he doesn't want to work with Congress and that he is not bound by our Constitution or trade laws.
▶ 1:38:06President Trump has unilaterally imposed the largest tax increase on working families in decades by implementing broad tariffs that are crashing the economy and threatening the livelihoods of so many working families in Alabama and all across America.
▶ 1:38:23Moreover, he is doing so by abusing the International Emergency Economic Powers Act or AIMPA clearly states that the president can only use this authority in response to quoteun unusual and extraordinary in quote threats. However, both you and the president have described the trade deficit as persistent.
▶ 1:38:47I don't know how you can claim that our trade deficit is persistent and at the same time use an emergency authority which requires it to be quote unquote unusual. My question to you, I have a series of questions and really I just want a yes or no answer. As our trade representative, do you believe there are any restriction on President Trump's emergency authority or do you believe that President Trump has unlimited power to tariff any country for any reason?
▶ 1:39:17Yes or no? Congress has put a number of limitations on that authority. So is that a no? Uh it is not unlimited. It's not unlimited. Uh, does President Trump did President Trump ask you or to or do you believe that using the emergency authority for this purpose of trade deficit is legal? Of course, it's legal. Yes. Uh, do you believe Congress has any role in providing oversight of this administration's implementation of tariffs? Uh, certainly.
▶ 1:39:47That's why I'm here today. Um, many of us on this committee have serious concerns that foreign nations will be pressured uh into negotiating as a result of this. And those negotiations could also extend to them purchasing the Bitcoin with the president's name and face on it. That would be illegal, right? Uh, I have never looked into Bitcoin purchases by foreign countries.
▶ 1:40:14Reclaiming my time with this uh are tariffs regressive or are they progressive tax? Well, tariffs can protect and that's why the United Auto Workers want them in place and have cheered the tariffs. I'm reclaiming my time. Um who spends a large a higher portion of their income on goods, the wealthy or working class?
▶ 1:40:35Uh I think the more wealthy have a higher percentage of consumption overall in the United States over well according to the tax foundation a conservative entity the distri the dis the I'm how things are distri distributed are more regressive uh and put a higher burden on lower income households more than higher inome households the top 10% of econom of of
▶ 1:41:05incomes account for about 50% of consumption. They do. And so I think for what I'm getting at, Mr. Ambassador, is that my Alabama constituents are very very worried. I was home this weekend and Miss Jackie, who owns uh Reflections, a coffee shop in Selma, Alabama, right um near the Edman Pettis Bridge. Uh a place that she couldn't have when she was growing up in Selma go into she now owns.
▶ 1:41:31It's a coffee shop and she's really really worried that the price of coffee will go up so high that she will not be able to keep her store and she just, you know, this is year number three. It's a very popular store, but in Little Selma, Alabama, where uh the price of coffee is already $5, $4.99, um increasing it even more would shut her down.
▶ 1:41:55And so my constituents have lots of questions uh to me and to um you know and to this president with respect to why we are um choosing to go down this path. His uh tariffs amount to the largest tax increase on those families. Um it's bad for Alabama farmers who are facing retaliatory tariffs. It's bad for consumers who will see prices skyrocket.
▶ 1:42:22It is horrible for those who are retired and depend upon their retirement to live and seeing the stock market go out of control. So, sir, this is really dire for a lot of folks that I represent. Dire for a lot of folks that I represent and we can't wait for things to get better. And so, I really urge you and the president to think about the least of these, the most vulnerable in our society and how they're going to weather the storm.
▶ 1:42:49and to my Republican colleagues here on this committee. I hope that you will push back on these escalating sweeping tariffs that have done so much damage to our economy. Thank you. Members time has expired. I now recognize Mr. Hearn for five minutes. Thank you, Mr. Chairman. Thank you for being here today, Mr. Ambassador. I really appreciate you being here to recognize the relationship between the executive branch and Congress on as it relates to trade. So, thank you.
▶ 1:43:16You know, over the last four years, trade has been neglected at best, and it's long past time for a real trade agenda and a president who wants to strengthen America, not seed its interest to foreign governments. As a matter of fact, the American people elected President Trump in November under the premise that he would rebalance trade with our allies and others around the world, bring manufacturing back to the United States to create high-paying jobs in America, make things in America.
▶ 1:43:39And as you just alluded to, it's been applauded by many people, including our great auto workers, as they talk about reconstituting those manufacturing jobs where they're needed most. You mentioned in your testimony that Israel is one of the countries looking to negotiate, and to my knowledge, they were the first to remove all tariffs for the United States. It is heartening to hear that our allies are coming to the table and taking quick action to remove trade barriers with the United States.
▶ 1:44:02Last Congress, I introduced a resolution supporting the free trade agreement we have with Israel as a way to support one of our greatest allies as they face an existential threat from Iran and his terror proxies. I appreciate President Trump's strong support of Israel and I hope that this first step by Israel to move to a zero tariff policy will lead the way to an even stronger trade and economic relationship between our two countries. Trade policy should reflect not only economic interests but also national security and ideological alignment.
▶ 1:44:31Strengthening relationships with allies who share American values is essential to reducing reliance on adversarial nations. Mr. Ambassador, how can we ensure our trade policies prioritize strategic allies like Israel and Taiwan who share American values and are willing to join us in acting common policies to counter our adversaries. Uh thank you, Congressman. I'm happy to report that Sunday night I had a meeting with Prime Minister Netanyahu about this very issue and the Taiwanese have also reached out.
▶ 1:45:00So, this is something where we're having uh close high level talks about how to move forward. I would also say as we talk to our allies, we're encouraging them and hoping that they will align with us on things like export controls and investment screening to make sure that as we trade with them, we're trading in a way that increases our economic security and not just our economic growth.
▶ 1:45:20We know uh calculations are going on and into the reciprocal tariffs include more than just tariffs other countries place on the United States and as you're undergoing negotiation with our allies is the president and your office taking into consideration things like export controls as you just mentioned uh foreign military sales, foreign direct investment as it relates to their relationship with the United States. So we certainly consider those things and appreciate them.
▶ 1:45:46Remember with foreign direct investment because they export so much to us, they have all these hard dollars and the best place to put them is here. And so that's that's kind of a natural outgrowth. Um we are very focused on making sure that we have a trade in goods that is fair uh and and make sure that we're not getting uh you know dumped on or have over capacity overflowing into the US and that we have export market opportunities. But we certainly are encouraged by and and you know the four trillion dollars into investment that's been announced uh by foreign companies. Are military sales included in that?
▶ 1:46:17So, so that's a good question. We've thought about that. When when you look at the trade numbers, I think foreign military sales, official ones, don't normally show up in those trade numbers. Uh, but I know that's been raised by several of our allies. And of course, we want them to be we want our technology uh to be the technology that allies are using. The last four years under former President Biden, USR failed to inade or adequately address discriminatory extr territorial taxes and digital trade barriers harming American companies.
▶ 1:46:44Last year, I raised concerns with Ambassador Thai when USR failed to include digital trade barriers in the 2024 National Trade Estimate, the NTE report on foreign trade barriers. The internet and digital technologies have revolutionized commerce, enabling businesses of all sizes to access global markets and consumers like never before. However, this potential is being undermined by the rise of digital trade barriers imposed by some of our trading partners.
▶ 1:47:10Those barriers come in various forms from data localization requirements to discriminatory regulations and censorship measures that not only stifles innovation and economic growth, but also undermines the competitiveness of American business in the digital age. In 2023, the US exports of digitally enabled services accounted for 64% of all US exports and the US had nearly 300 billion dollars in digital trade surplus.
▶ 1:47:35Will you make it a priority to unlike the last administration to address this digital trade barrier? Um, yes, we're focused on this. We're we're not political or choosing sectors we like or don't like. Um, and we've recorded in the trade estimate this year different digital trade barriers. Obviously, Congress is going to, you know, regulate and decide how we're going to, you know, manage digital trade, competition, those kinds of things, but we just can't have discrimination and and I I won't accept that by our foreign trading partners, especially in this area where we're so competitive.
▶ 1:48:06I want to thank you again for coming here and appreciate you answering everyone's question. Again, it shows the understanding of the relationship between the executive branch and Congress as it relates to trade. Thank you again. Appreciate it. I yield back, Miss Del Bennett. Thank you, Mr. Chairman. And thank you, Mr. Ambassador, for being with us today. Um, tax day came early this year.
▶ 1:48:28Came on April 2nd since Trump's sweeping tariffs um are raising prices for American families by $4600 this year, according to the latest estimates. It keeps going up. Um, families are struggling. Um, businesses are panicking. Um, I talked to a business in my district that talked about being tariffed out of business. We have businesses who have a lot of e export who manufacture right here in the US and export who are losing business.
▶ 1:48:56Um even Republicans are beginning to break with the president. We've seen several joint bills that would make clear that the president does not have the ability to single-handedly impose sweeping tariffs. Um the real question we're all wondering is how do we get out of this mess that Trump has created? Um, Chairman Smith recently said he hopes that the Trump tariffs will give USR leverage to negotiate new trade deals.
▶ 1:49:24Um, but Ambassador, how can any country trust the US enough to make a trade deal? Um, given that Trump has thrown out existing trade deals like Australia or South Korea or even USMCA which he negotiated and Congress enacted. Um, how are people going to trust us when arbitrarily these deals are being thrown Uh, Congresswoman, thank you. The United States remains the consumer market of choice for everybody.
▶ 1:49:54Um, and and I hear some of these Wall Street analysts, you know, predicting uh, you know, im imminent catastrophe. Um, and that's just when we look back at Trump at Trump one, we put tariffs on China and we reinvigorated uh, NAFTA to be USMCA. uh you know we saw real household medium income go up. We saw inflation go down, unemployment go down and and the countries are coming to us every day. We're having several meetings with them every day to do these deals. So So they're not showing hesitation.
▶ 1:50:21But if we have a deal that's being blown up, then you can say you're negotiating a deal. Two seconds later you can throw it out. What kind of deal is that? Are these deals that you're supposedly negotiating? Are they going to come to Congress for a vote like USMC like USMCA did? The these are deals. Uh so first of all, if we did a comprehensive free trade agreement, of course we would we would come to Congress, etc. And we will certainly keep Congress up to speed on any kind of any deal that you do. Are you going to bring that to Congress for a vote? We'll do we'll do what the law requires.
▶ 1:50:51Some of its consultation, some requires a vote, so we'll follow the law on that front. But the the company the countries are coming, right? If they were hesitant, they wouldn't be knocking down. But I don't understand what the countries are coming to do. you put uh tariffs in place uh sweeping tariffs with no specifics on terms of what the goals are, no plans, and then you say countries are coming to what to individually negotiate with President Trump and it's his whim what's acceptable or not acceptable.
▶ 1:51:17So for example, I get a letter from the Vietnamese which I received recently and it outlined a number of tariff lines where they want to reduce their tariffs and non-tariff barriers that they want to remove and they want to engage with us on reciprocal trade. But what is what are the objectives of the negotiation? You didn't lay those out. The plan there's no plan that was laid out by the president. I've seen no plan from USR on what the goal of the tariffs are. We're damaging U commis. We've we've thrown out existing trade deals that we already have.
▶ 1:51:46And now you say there's a negotiation with no clear goal what that negotiation is or whether or not Congress is going to have a vote on a on a potential deal. So, we have a 20page order laying out the basis for the order and the emergency we're facing, which is the trade deficit that President Biden left us with, the offshoring that it represents, the non-tariff barriers represents, and we're looking to eliminate that, and a tariff is a way to do that. And if a country has an alternative method that they think will help us meet those goals, we're happy.
▶ 1:52:14Can we talk about the emergency powers of the emergency power statute that Trump invoked um AEPA uh to impose his tariff? It states the president in every possible instance shall consult with Congress before exercising any powers. That didn't happen. Our staff came uh our USR staff came up to Congress and did consult. Uh I've had with who? With what members? With what members of Congress did you consult with? I'm a I'm a member of the Ways and Means Committee.
▶ 1:52:44I'm a member of the trade subcommittee. I called both the chairman and the ranking member uh the day before, the morning of. if you talked to if you if you called to how could you consult with folks when the there wasn't even a deal that was proposed. In fact, it wasn't until April 2nd when the tariffs were put in place. No one even knew what exactly was going to happen. There was nothing to consult on. So, how did that consultation take place?
▶ 1:53:11I had a phone call with Chairman Smith and Ranking Member Neil about a non-existent deal. Well, I told them about the IEPA action that was coming and I sent my staff up here to brief the committee staff as well. Um, so I argue now we did not have that consult consultation. Here we are. There was no plan in place. There's no plan in place going forward. Um, the American people are hurting.
▶ 1:53:33And now in the rule vote that we're going to have just after we are done with this hearing, um, Republicans are already uh putting in a provision to make sure that they don't have to vote on the tariffs that are in place. Congress should have a role here. It's terrible that my colleagues on the other side of the aisle aren't willing to have a vote, too. Thank you, Mr. Chairman. I yield Miss Miller. Thank you, Chairman Smith. Welcome, Mr. Ambassador. Thank you for being here.
▶ 1:54:03It's my opinion that part of the reason President Trump has taken such drastic action on trade is due to the fact that there was no trade agenda under the Biden administration. And I didn't hear any sniping from the other side about that. The past administration's failure to engage in meaningful conversations with our trade partners opened the door for countries to run a foul of the World Trade Organization tariff agreements and to impose excessive non-tariff barriers.
▶ 1:54:34These countries have had no incentive to negotiate and they've been massively benefiting from the system as it is. For example, in my state, the hardwood companies have been pummeled by China, dumping their hardwood in the American market. China gained at our expense while we were asleep at the wheel. Thankfully, that is not the policy of the United States.
▶ 1:54:57Today, due to President Trump's swift action, more than 70 countries are knocking down our door, ready to negotiate a trade deal. Today, I want to focus on the future of our trade agenda. Looking to the very near future, the administration is required by statute to undertake the United States Mexico Canada agreement review process in 2026.
▶ 1:55:23I can'tateate the importance of the USMCA to my constituents. The growth in the manufacturing sector spurred on by our cooperation with Canada and Mexico has helped sustain thousands of jobs in my district. I'm well aware that this agreement is not perfect and we are fortunate to have the review process in place in order to make the necessary improvements.
▶ 1:55:50Ambassador Greer, what commitments can you make to us today in regard to the USMCA review? Specifically, how will you use this opportunity to advance President Trump's goals of promoting domestic manufacturing and how will you engage with Congress to facilitate this Thank you, Congresswoman. Um, and I'll just I'll just note that goods coming from Canada and Mexico right now that comply with the rules of the agreement continue to enter duty-free. This is an important agreement.
▶ 1:56:20Uh, I met with my Mexican counterpart last night. Uh, I have worked in the works. I have a meeting with my Canadian uh counterparts and we expect that we will initiate the public consultation process that's required by the statute uh at some point uh at the time required. I think with the USMCA, it's important that Canada and Mexico not be used as an export platform for third countries. That's not what we want.
▶ 1:56:47USMCA should be an agreement that promotes manufacturing in America and that we can rely on on on our partners to the north and south if needed. But they it can't be a situation where countries can just come in, you know, China or Vietnam or somebody, build a factory in Mexico, assemble it with parts from there, and send it across and get the benefit of an agreement where they've taken no obligations. So, I want to make sure that it truly is an agreement that helps America first. Thank you.
▶ 1:57:15I've greatly appreciated your leadership in protecting American digital companies abroad. You and I are in agreement about the dangers of South Korea's anti-competitive policies towards American digital companies. I intend to reintroduce legislation that seeks to ensure that American companies are not being harmed by one of our closest allies while Chinese companies are left unscathed.
▶ 1:57:39The digital trade sector is rapidly growing and it's important that we do not lose market share to China in this critical field. Several countries are considering legislation that mimics the European Union's Digital Markets Act, which has undisputably caused a digital winter for American tech companies operating in Europe. What are your plans to address these harmful policies and to ensure the prosperity of American digital trade?
▶ 1:58:07And do you think that digital trade will play a part in the imminent trade discussions regarding the liberation day tariffs? Uh, thank you. So, first of all, I understand that there's obviously a national conversation going on about, you know, how digital trade should be regulated and there are lots of views on that. What I will say is we're not going to outsource that regulation. We're not going to let the European Union or Korea or any other jurisdiction, you know, set the rules for digital trade. It will be us and they won't be able to do it in a way that's discriminatory either.
▶ 1:58:37That that is impermissible, especially when we have, as you noted, the Chinese competition out there. I if we're going to have if we're going to have companies that are that that operate in this space and are so competitive in this space, we need to make sure that they're American companies, right? That that's what we need to make sure. And so this is certainly something that we can talk about in any negotiations that come up. Thank you. We have historically forged some of our strongest alliances based on procuring critical minerals, which are difficult or nearly impossible to obtain in the US.
▶ 1:59:06Will you commit to exploring trade discussions and partnerships with likeminded partners to protect and build up our critical minerals today? Yes. Thank you. I yield back. Mr. Neil, thank you, Mr. Chairman. I want to invoke a moment of a point of personal privilege. When when the ambassador called me, it was more to inform me of what the administration was going to do. It wasn't to consult or to seek my opinion as to what they were going to do. Mr. Murphy.
▶ 1:59:46Thank you, Mr. Chairman. I just want to show a slide to everybody um documenting where we are with the United States and the US trade deficit. I think this really shows why this is an emergency. If you look at where we are with manufacturing goods, that's in the red column here.
▶ 2:00:03If you look at what has happened to the manufacturing capacity of the United States, we have plummeted, absolutely plummeted down here in 2022, we have such a trade deficit with manufactured goods. This is critical. This is why the president has said this is an emergency. The same thing with fuels and other total goods. we have plummeted in this nation's capacity to actually produce things.
▶ 2:00:29So yes, this is an emergency and this is by all means altogether the right thing to do. If we do not reverse this trend again going with the absolute uh calamitous effect of how we are hurdling towards a sovereign debt crisis, this nation does not exist. And yes, there is short-term problems without a doubt. But it's the same thing by taking medicine you don't want to take.
▶ 2:00:53If we don't help the body by intervening in doing what is critically important for this nation, nothing else matters. So this is why how manufacturing has plummeted and this is why we are in a state of emergency. Thank you. Um thanks just for that that moment. I I want to briefly say something before I begin my remarks. I've gone down in many many many times to Haiti. We talked about this before and done many a lot of mission work down there.
▶ 2:01:20Unfortunately, the Hope help program is set to expire in September. I hope some um work is being done in reauthorizing this this program. We're trying to nearshore onshore. We want to stabilize our Caribbean nations, our Central American nations, and Haiti has fall fallen into such decay right now. It makes Somalia look like uh like wonderland. We really need to help these nations stabiliz stabilize in our hemisphere. It helps everybody.
▶ 2:01:47So, I hope that is just going to be on your HR1625, the Health Extension Act. Uh just to shift gears again, I want to talk a little bit about Deminimus. Um the legislation HR7979, the in China's dimminimous abuse act did not make it to the floor. However, you know, we've seen that uh packages being abused by this uh um loophole literally with China overwhelmed the CBP leading to billions of dollars of lost revenue and jobs.
▶ 2:02:16Um, this has allowed Chinese companies to send so many goods into this country without paying tariffs. Can you discuss why the administration is taking on dimminimus? Why this is so necessary? Uh, yes. It's essentially for all the reasons you just described. Um, you know, dimminimus originated as a way for for tourists or others to, you know, go overseas, buy souvenirs, come back, bring them in duty-free, and that persists, right? That continues. I think everyone's comfortable with that.
▶ 2:02:41But what we saw were foreign uh companies abusing the system and taking advantage of it and building a commercial um you know a commercial case for it their entire business on it and and and that ended up undermining a lot of a lot of retailers here in the United States. And so it's important to make sure that that that tool is used for its original purpose and not for you know other countries to avoid duty payments or things like that. Um you know one of the comments were that we shouldn't be doing tariffs to our friends.
▶ 2:03:10friends don't treat friends with horrible tariffs like we are being done by other countries. So I think you know sunlight is the best disinfectant so we're able to see what the rest of the world has been doing to the United States. I don't think the American public understands this and that's is why I think it's just so critical that we shine the spotlight on this. Um quickly just with uh one things that happened in the pandemic.
▶ 2:03:33I'm a physician and we saw that our supply chain for pharmaceuticals for health related PPE etc is critically um at risk during these things. If China were to shut off all its exports overnight medical supply chains would be one of the industries's hardest hit and we would have American patients literally dying because they could not get medicines or other type of devices. Uh can you discuss how the Trump administration's trade is securing helping to secure our health supply chain? Uh yes.
▶ 2:04:01So so first of all we have to reshore we have to reshore pharmaceutical production uh to avoid the very situation you talked about and we have to do it now. We can't wait for the next crisis. We can't wait for the next conflict. We have to do it now. Uh I understand the commerce department will be undertaking an investigation of the pharmaceutical supply chain to assess what tools we can use. The president's talked about tariffs that might apply to certain things to incentivize uh reshoring. But I assume that investigation will also have other ideas as well.
▶ 2:04:26We have to make sure that in this tariff uh you know incident we're not hurting American companies and and hurting them over um helping out foreign countries. And you know going back to you know Camala's famous phrase of getting to the root causes of immigration. They did absolutely nothing to bring industry nearshore trying to prop up Caribbean nations so they won't have everybody trying to run over border. Look, I've talked to you about Puerto Rico. I was in Puerto Rico this last weekend.
▶ 2:04:53There's so much of an opportunity to go there and onshore in an American territory to bring back American pharmaceutical industries, so many other industries that help us with our national security. And at the bottom line, this is what we're talking about. We're talking about national security. Thank you. U Mr. Ambassador, I'll yield back. Miss Chu, Ambassador Greer, my constituents are sick with worry about the high cost that the Trump tariffs will bring them.
▶ 2:05:21They are barely able to afford their everyday living expenses. But now they're hearing that the average family will have to pay $4600 a year more because of the Trump tariffs. They are hearing this will be the largest tax increase for the American people in our nation's peaceime history. They are hearing Goldman Sachs say that we face a recession.
▶ 2:05:45The increases will be for food items that the US does not produce domestically like cacao beans, coffee beans, tea and spices, and certain nuts. But non-food items like clothing, consumer electronics, shoes, cell phones, furniture, and household appliances will be especially hard hit as more than 50% of our consumption comes from countries facing tariff increases of 30% or more.
▶ 2:06:14I must point out that there are some items on the list like bananas and cacao beans which the US can never grow enough of to meet our own demand because of our mostly non-tropical climate. In fact, the US produces a tiny number of bananas in Hawaii and Florida, but depends enormously on importing bananas from Guatemala, Ecuador, and Costa Rica, all of which receive tariffs.
▶ 2:06:40And in fact, the US is the world's largest importer bananas. So this shoot first then aim approach is making Americans lives much worse with no actual plan and doesn't make any sense. I see this in three ways. First, the president said that these tariffs would bring manufacturing business back to America, but thousands of Americans were immediately laid off.
▶ 2:07:09And manufactur manufacturers are telling you that this will crush them. And why would the president impose this tariff tax on tropical countries when America can by far not produce their own bananas, coffee, and chocolate? Is the president aware that these crops only grow in tropical climates?
▶ 2:07:31Second, in imposing these tariffs, the president claims that the US is being ripped off by other countries that are profiting off of us. Yet, these tariffs are being imposed on countries with whom the US has trade surpluses, including the Nether Netherlands, the UK, Belgium, Panama, and so on.
▶ 2:07:52Using the formula that USR released to the public to justify this chaos, no country with whom the US has a trade surplus should be subject to additional tariffs. How can you and the president justify forcing the American people to pay more for goods from these countries that already import more of our goods than we do theirs?
▶ 2:08:14Third, then if there's an actual formula, why would the Trump administration decide to reserve its most severe punishment not for Russia, which was entirely spared, but for some of the poorest, least developed countries in the world. For instance, Madagascar, which has a poverty rate of over 75% and where the average worker lives on less than $2.15 per day, the president placed a 47% tariff.
▶ 2:08:42So Madagascar 47% tariff, Russia zero. My conclusion is that there's only one explanation for this corruption. The Trump administration is now bragging that dozens of countries are approaching the White House ready to offer concessions and negotiate a reduction in Trump tariffs. This presents a completely unprecedented opportunity for corruption.
▶ 2:09:08If his tariffs are allowed by Congress and the courts to stand, then the president could unilaterally decide to remove or reduce tariffs on certain countries. With no transparency, a country could pay the president or his family money through memberships at Mara Lago or payments through their various cryptocurrencies in exchange for a reduction in tariffs. His cronies could pay him directly to remove tariffs from certain imports.
▶ 2:09:38So, Ambassador Greer, I would like to ask you two yes or no questions. My first question, you're putting tariffs on crops that we for the most part don't grow like bananas, cocoa, beans, coffee, and vanilla. Is the president aware that these crops only grow in tropical My second question, yeah, you answered yes. Can you promise that there won't be a payfor-play system where companies and donors make the pilgrimage to Mara Lago to get exemptions? You have my promise.
▶ 2:10:07Well, my constituents don't have that access, nor do most of the American people. But because of these Trump tariffs, it is they who will have to pay the exorbitant costs of these actions. And that's not right. Mr. Kustoff, thank you, Mr. Chairman, for convening today's hearing and thank you, Ambassador Greer, for appearing today.
▶ 2:10:32Uh, Ambassador Greer, I represent part of Memphis, Tennessee, and most of rural West Tennessee. And in Memphis, Tennessee, last year, 2024, we uh we had a great opportunity with Elon Musk when he made an announcement to uh create a historic investment in Memphis through his company XAI.
▶ 2:10:56And the investment will lead to the world's largest supercomputer called Colossus. So Colossus is the core infrastructure behind Gw which is the uh artificial intelligence system that Mr. Musk is developing or has developed and that I use and probably a lot of other people use.
▶ 2:11:19I've toured Colossus and uh frankly the capabilities are absolutely remarkable. From what I understand with this project and with Elon Musk is he places a strong emphasis on sourcing Americanmade products with XAI whenever feasible, demonstrating a commitment to domestic innovation.
▶ 2:11:46The the issue is is that supercomputers uh like Colossus depend on a variety of advanced components that right now are not produced in the United States. And I think we can all agree that we want the United States to be the absolute leader when it comes to AI.
▶ 2:12:07The other issue is is the reliance presents obvious and serious strategic vulnerabilities because a disruption in the supply chain could could hinder US capabilities.
▶ 2:12:23So I understand that the entire industry is working on building domestic capacity and thanks to President Trump and his efforts and the efforts of the administration, we've seen massive investments from companies like Nvidia and Taiwan uh semiconductors. But I think we all also realize that that transition is going to be several years or it's going to take several years.
▶ 2:12:50So could you talk about USR is balancing the near-term need for components with the long-term goal of onshoring these critical supply chains? Certainly. So when when the president took his action on reciprocal trade, uh there were some items that were not covered by the new tariff u because further investigation was needed. This includes pharmaceuticals as I've discussed, but it also includes semiconductors.
▶ 2:13:21And so many semiconductors are not covered by the reciprocal tariff because the commerce department, as I understand it, is looking into doing a further investigation to see uh where tariffs may or may not be appropriate on semiconductor chips or the downstream components. And that's something I know that the commerce department's looking at very closely. Thank you, ambassador.
▶ 2:13:40if I can because there's been a lot of talk here, some talk about about Russia and the suggestions that the Trump administration has let Russia off the hook when it comes to tariffs. My recollection is this committee several years ago took the lead on bipartisan legislation to change the trade treatment as it relates to Russia.
▶ 2:14:06specifically revoking the permanent normal trade relations, specifically banning the import of all energy products from Russia, specifically by providing a path to raise tariffs on many other products from Russia.
▶ 2:14:23So, in fairness, I know that both the Biden administration and the Trump administration have added to this legislation by imposing a wide range of sanctions on Russia, which cut off most of trade and investment. So, my question to you is, would any Russian exporter feel that it has better access to the United States market than our non-sanctioned trading partners who may face higher tariffs right now? Oh, no.
▶ 2:14:53By by no means. Russia is subject to a very high tariff due to the good work you did here in Congress as well as other kind of bad actors that fall into that category. Bipartisan on a bipartisan basis. That's correct. Thank you, Ambassador. Thank you, Mr. Chairman. I yield back. Miss Thank you so much, Mr. Chairman, and thank you, Mr. Ambassador, for visiting with us.
▶ 2:15:17I'll have to say that I have really appreciated the discussion that we've had here today with our colleagues and as is always the case with me. I have remarks that are planned and then I make the mistake of listening to what other people have said and I really do want to agree with some of the things my colleagues have said like Mr. Schmucker and Mr. Kelly that we need and you Mr. ambassador have said that we need to have access to markets.
▶ 2:15:47Specifically, Mr. Kelly said we can't afford to lose any market share and I agree with him. He went on to say that we need to level the playing field. Uh Mr. Le Hood talked about his soybean farmers in Illinois and I'm from Wisconsin, sir.
▶ 2:16:05And so, um, I do know that we have $1.3 billion dollar worth of soybean product and our main partner is with China. And so I think Wisconsin farmers, that's just one example of how we are at risk of losing market share. And then Mr. dog.
▶ 2:16:27It went on to say how, you know, instead of allowing like my soybean farmers to to do that, what we would revert to would be to give them welfare. And I guess I don't agree with that characterization. I don't even agree with it as a characterization of subsidy because it's actually a ripoff. you know, farmers lost about $27 billion um in the first Trump uh administration and they only got about $23 billion in subsidy return.
▶ 2:16:57So, they lost money. Uh they lost market share and they lost lives. You know, in Wisconsin, there was a study done and they looked at suicide rates and suicide rates among farmers are like three and a half times more than in other professions. It's a very stressful career. And so I am very concerned and I wonder what's going to happen to them.
▶ 2:17:21You haven't said to us, I think you sort of skirted the question about whether or not we were going to give them subsidies. But even if we would give them subsidies, that would not prevent them from losing market share. And farmers want they don't want a check. They want to be able to farm.
▶ 2:17:42Um I also wonder, sir, um what um uh you know, I I I'm just saying I think that um when you look at trade deficits, I think we have to look at more than just what a tariff may or may not do.
▶ 2:17:58Our trade imbalances over time have been caused by us not having a trade balance on issue of labor laws, making sure that there's no slave labor and child labor, that the environment is protected when we extract materials and do stuff that that people have the ability to bargain uh in their countries and to make sure that they get a wage that's commensurate with their efforts. And you know, I agree with Mr.
▶ 2:18:26Kelly, that we need to level the playing field on those um those fields and that a rising tide will lift all boats. I do wonder, Mr. U. Ambassador, whether this administration's trade policy, and it seems that it does, uh my colleague here just mentioned the trade deficit that we have with Madagascar.
▶ 2:18:49I had the privilege to go on a trip with the committee to Madagascar where there was 75% poverty rate. So I'm wondering if they will ever ever ever be able to give us a trade balance. Speaking of Madagascar, they belong to AGOA.
▶ 2:19:10And I'm wondering if this administration's policies would eliminate something that's been bipartisan, the trade preference programs that we've had under AGOA. Yes or no? Are we going to have an So, Congresswoman, yeah, thanks for your Well, it's up to Congress. Congress has to decide if they're up to the president. He's in charge of trade. We've sort of Do you have a Do you have a bill? I I haven't seen the bill yet on this. when if there's a bill, I'll advise the president accordingly on how we should approach it. Okay.
▶ 2:19:40I I'll just say one last question to you. You say that we have got to reshore manufacturing. Um you did not say where folks will get the money and the confidence really to make these investments. Is any of the money that you plan to get from tariffs going to be targeted to incentivizing manufacturing? I've got a factory that made car uh frames.
▶ 2:20:08AO Smith, 10,000 people working there. When are we going to reopen AO Smith? Sir, if the chairman I I would love to reopen that. And when will I be alive? I'm going to be 74 in 9 days. I hope so. We should go there, you and I, and talk to them about what they need in order to reopen. We put tariffs in place. I mean, they've been shut for years. We want to create incentives so they can reopen. How what's the timeline?
▶ 2:20:33between the suffering that they're doing now and when AO Smith is going to open again. Part of the problem is offshore jobs for so long and no one's taken action. We've sat on it. We have this huge it is an emergency and I agree with you and I think your thought your comments have been very thoughtful. I don't have that much time. I mean I I'll be 74 in a few days. It's it's 10 years. It takes a long time to open up a factory and to get the investments. That's why the president and is it going to be 10 years? How long before we just have to be patient?
▶ 2:21:03That's why the president's acting now because we can't wait anymore. We have to reshore now. Now, like a microwave now. Thank you, Mr. Chairman, and I yel back. Thank you. I'll recogni recognize myself for questions. Ambassador, um uh thank you for um calling and consulting with me um before a lot of these uh trade agreements.
▶ 2:21:26So I appreciate the correspondence there um because you have um I also want to just raise the significance that I believe AGOA has for this country um and those trade preferences with those African nations from a security perspective is extremely important and I hope that the administration continues to see from a security perspective that trade preferences with those African
▶ 2:21:56countries is extremely important. Chairman, I will certainly share your views with the president and I've I've shared them before with others in in the White House. Um, and I understand the importance of AGOA to this committee and Congress and I would encourage the committee as you look at it and potential renewal to think about ways to uh improve it. And I would love to work with you all um to make sure that we can we can do that. It's just it's it's just very important.
▶ 2:22:23I also um I've heard a lot of conversations today um and and one thing that I appreciate is Secretary Bent's comment that I've read that he says over the last four decades um Wall Street got very wealthy but over the next four years it's Main Street's turn.
▶ 2:22:48And that's in fact who the president's been fighting for is for all those forgotten people in southeast Missouri in rural America that their their place of employment is now vacant. My mother was one of those individuals. I have numerous family members that's one of those individuals and I people will talk about their 401ks.
▶ 2:23:11But the reality is is that the 10% own 88% of all the stock market. The top 10. Then the next roughly 12%, as the secretary has said, the next 12% ownership of the stock market is the next 40%.
▶ 2:23:34So that bottom 50%, the people who make less than $42,000 a year, those people, they're worried about their debt, their credit card payments, their interest rates, and that is who President Trump is fighting for in bringing more jobs, manufacturing, open up factories, and coming down here. And I want to thank you for standing here.
▶ 2:24:01I want to thank you for working for this cause and I think it's extremely important and it will be transformational. It may be bumpy for a while but it's about time Main Street Main Street is representative instead of Wall Street. Um I want to I want to ask you a few questions about the European Union. As you know, I have shared my opinion about the European Union and how disappointed I am of how they've taken advantage of US farmers and US agricultures.
▶ 2:24:31I heard them say that they're willing to lower their their their tariffs on industrial good goods. That's not good enough, Ambassador. They have to address their non-tariff barriers when it comes to agriculture goods. The country of Honduras, country of Honduras purchases more pork than the entire European Union. And there's only 10 million people there. There's 450 million people in the European Union.
▶ 2:25:02And then you look at the country of Angola, one of those African countries. They purchase more chicken from us than the entire European Union. And the European Union has a GDP 200 of that in Angola.
▶ 2:25:20These are trade problems and this administration better continue to fight for the American farmer, that Missouri farmer who's been screwed for such a long time by our friends. And I want to thank the president. I want to thank you for continuing with it. I do want to ask you um do you agree that there's a serious a serious trade problem when it comes to agriculture in the European Union?
▶ 2:25:51Yes, chairman. It's fundamentally unfair. It's structurally unfair. It has been for decades and I've been very clear with them that any kind of agreement or negotiation or anything, it has to have an ad component for all the reasons you described. Super important.
▶ 2:26:04Last year, I requested the International Trade Commission to complete a detailed study of the competitiveness of the US rice industry with a particular focus on the ways that unfair subsidies and other practices in other rice producing countries harm American rice farmers by distorting markets and reducing export opportunities.
▶ 2:26:28The study was completed earlier this year and I was not I was not surprised to learn that India is one of the worst offenders. Its subsidies and particularly um are particularly problematic because of the lack of transparency around some of them.
▶ 2:26:47Do you share my concerns with unfair practices in India and elsewhere that harm American rice farmers and will you attempt to address these issues through any negotiations with India? Yes, I will. And as you know, uh, chairman, I'm from Northern California, from rice country there, too. So, I'm particularly sensitive to that. Appreciate it. Thank you for being here, Mr. Bole. Thank you, Mr.
▶ 2:27:17Chair, and thank you, Ambassador, for being here today. Um, three times in in this century, three times in the last 25 years, we've had a recession. Uh, 2001, right after the September 11th attacks, 2008 when the housing bubble burst, and 2020 with COVID 19 pandemic. All three of those were caused by some external event.
▶ 2:27:44Now, most economists and most Wall Street firms agree that it is more likely than not we are either in a recession now or headed to one. This will be the first recession in at least 25 years directly caused by the policies. The last week has been an disaster. Markets are royal.
▶ 2:28:13retirement savings taking a hit, 401ks becoming 201ks. People are genuinely scared, especially those, including a couple I talked to yesterday, who are just hitting retirement age. So, I would really like to know why exactly the president is doing this. China, I completely understand.
▶ 2:28:40I think actually there's been bipartisan agreement around here for quite some time that we needed to get tougher with respect to China. But why going after Canada? Why going after our closest allies in Europe? This does not make any sense.
▶ 2:28:58And frankly, it it doesn't exactly inspire confidence when um the so-called formula that was advertised last week came from absolutely no textbook that any of us are aware of. I mean, yes, it had two fancy looking Greek letters. That does not make it well thoughtout policy. So, I am curious what exactly the strategy is of going after Canada and our closest allies.
▶ 2:29:27and actually uniting the whole world right now, not against China, but against the United States. Well, Congressman, I know that Wall Street and you and your colleagues want the status quo. That's what I'm hearing. Uh, excuse me. Reclaiming my time. That is not what I'm arguing. I want an end to the chaos. I represent a very workingclass district in Philadelphia.
▶ 2:29:51Um, I don't think there's one person in my district who who counts as one of the top 1% of Americans. Uh, hard-working families, whether white, black, Hispanic, Asian, from northeast Philly to North Philly to the river wards are all being directly impacted by what is happening over the last week. So, I want to know, they want to know why is it that 3 months ago no one was predicting a recession. Everyone had growth projections.
▶ 2:30:22The Fed, most economists, whether liberal or conservative, and now the base case is a more than 60% chance of a recession. That is directly because of White House policies. So when will it be enough? Uh really I can't take all this winning. Uh and nor can the American people and the folks in my district I represent. The these Wall Street analysts are the same ones that predicted decline in in the first Trump administration.
▶ 2:30:48where real household medium income went up by $7,000 coupled with with tariffs. The president has to get the trade deficit down. We've lost 5 million manufacturing jobs. It has been a massacre in American manufacturing and we have to have those jobs back and it's urgent and we can't keep passing the buck. President Biden did nothing on trade for four years. That's what I've heard from both sides and we have to act. We have a huge trade deficit with the European Union which we heard about from uh M from the chairman.
▶ 2:31:14We have huge rate deficit with foe and friend alike and we have to deal with it and that's why our friends are coming to us and saying why don't we talk about how to achieve reciprocal trade. They're not running away. They're not announcing retaliation. So since I since I have just under a minute left um can we look forward to hearing about these big beautiful trade deals over the next week like with Canada? Um what exactly is going on? These countries that are clamoring talking to us apparently right now according to your words.
▶ 2:31:43Do you have any um hope that you can offer us that we're going to see one of these trade deals inked very soon? Congressman, I can't prejudge the timeline, but I'm spending all my time when, you know, I'm not here with you all doing consultations uh talking with them. So, I'm I'm hopeful that we can move quickly on on a handful of and and finally, just in the final 17 seconds, when will this end? What does success look like?
▶ 2:32:07Because a lot of people right now, whether Democrat, Republican or independent, are really trying to figure out what exactly the endgame looks like here because right now we all see the chaos and not what the actual end result uh would look like. Uh the deficit needs to go in the right direction. Uh manufacturing as a share of GDP needs to go in the right direction. The non-tariff barriers and tariffs we face in other countries, they have to go down in the right direction. Those are the things that we're looking at. Those are the basis of the national emergency. That's what we're looking at. Time's expired.
▶ 2:32:37So, thank you. I yield back. Mr. Stwie. Thank you, Mr. Chairman, and thank you, Ambassador Greer, for appearing today. Under President Trump's leadership, we've seen a bold reassertion of American economic strength and leverage on the global stage. I'd like to walk through some of these wins and clarify the intent behind the administration's trade trade actions. Ambassador Greer, can you start by reminding this committee why President Trump felt it necessary to take such divisive action with tariffs and what problems he inherited from decades of failed globalist trade policy?
▶ 2:33:07Uh, yes, certainly. As I've mentioned before, President Biden left us with the largest trade deficit for any country in human history, $1.2 trillion. It's extreme. It's unsustainable, especially when we have a 36 thousand$ 36 trillion debt and a2 to3 trillion dollar uh budget deficit. None of these numbers are sustainable. And anyone who wants to pass this on to the next generation or to our kids or to the next session, they're doing a disservice. We have to deal with it now.
▶ 2:33:34And we need to deal with the reshoring and remanufacturing now before we're in another crisis. Whether it's a conflict or a pandemic, that is not the time to try to get back pharmaceuticals and semiconductors and autos and all these kinds of things. We have to do it now. What distinguishes the Trump approach from the past 30 years of so-called free trade policies that gutted our manufacturing base?
▶ 2:33:54Well, Wall Street, we've heard a lot about Wall Street today and how important Wall Street is and and all their analysts and and their entire goal has been just to make money for that top share of, you know, the elite, right? That's been their goal. And so they've been focused on offshoring so they can have more efficiencies so they can have cheaper labor uh no environmental regulations. They can go to these lowcost jurisdictions. And what does that means? It means that we have workers who train their replacements in foreign countries.
▶ 2:34:22They lose their jobs and then they're in their hometown without a factory, without a job, and they live lives of despair in many cases. And that's what's different with President Trump. He wants to reverse that and he wants to change it. And isn't it true that over 60 countries have already come to the table to negotiate since the president announced the new reciprocal tariff structure? Well, I'm starting to lose count. Um but but yes, that's in that's the that's the neighborhood of the folks who want to come in and work with us on reciprocal. And what does that say about the global leverage we've regained under this administration?
▶ 2:34:51Well, that's exactly right. We are the we are the market of destination for we are the market destination for both uh consumption, investment, etc. and other countries want access to our market. They understand now that we have to have it on fair terms and that's why they're here. They'd be running the other way. That's why almost all of them have said we're not going to retaliate. We're going to work with the administration. And how important is it from a national security standpoint that we reduce our dependency on foreign steel, aluminum, and automotive components? And how have the tariffs moved us in that direction?
▶ 2:35:23That's a great point. uh with steel and aluminum. The president put steel and aluminum put tariffs on steel and aluminum in his first term. The Biden administration kept those in place. He's tightened up some of those tariffs now. And so we are able to maintain uh a steel industry. We're able to maintain an aluminum industry. These are things you have to have as inputs for weapon systems, for our infrastructure.
▶ 2:35:45And a country that doesn't have that kind of hard manufacturing power behind it isn't going to have the soft diplomatic power you need to to navigate a challenging world. And do you believe that President Trump's tariff policy has reestablished America economic sovereignty where we no longer have to beg foreign governments to treat us fairly? Yeah, I think there's no question about that and we can see it from the first term when we imposed tariffs on China in an effort to get them to change their unfair trading practices.
▶ 2:36:12When that happened, we saw our trade deficit with China uh decrease, which is really important. So, it shows that we can become less dependent on foreign powers for the most critical goods and services. And how important has President Trump's leadership, his willingness to stand up to global elites and foreign governments been in reasserting the United States as a trade power? Well, it it it's been historic. It's been historic because in the past, we've had leaders and politicians who um were either in the pocket of Wall Street or they had some other special interest.
▶ 2:36:40and he's been willing uh to take a stand and do hard things and show others that he's not going to cave. Um this is really important because if other countries other countries think about power in a different way, some politicians want, you know, foreign countries to say nice things about them, that's like their end purpose in foreign policy or trade policy. President Trump wants the right thing for Americans. And sometimes it means you have to stand up for yourself, draw a line in the sand, and say, "We're not going to do this anymore." What would you say that?
▶ 2:37:09Would you say for the first time in decades, American workers have a president who fights for them, not for multinational corporations or foreign bureaucrats? That's exactly right, Congressman. That's why workers voted for him. That's why unions support the tariff actions. That's why we see, you know, opeds in the newspaper about union presidents wanting to work with President Trump on trade. That's why we're seeing all of that that change, that realignment. And I'll end I'll end with this. What evidence have you seen that President Trump's tariffs are driving jobs back to the United States and helping to rebuild our manufacturing base?
▶ 2:37:38Well, for example, the auto tariffs that were imposed, we've already seen that one company is increasing employment, including temporary employment. Uh, in Indiana, we've seen a, you know, in Tennessee, there was a shift that was going to go down to another country. They kept that shift in America. Everyone knows if you want certainty, if you want access, you build in America and you use American labor. Thank you. My time's expired. I recognize the acting ranking member, Miss Miss Mora. Thank you, Mr. Chairman.
▶ 2:38:07Can I I'd like to ask for unanimous consent to enter a record uh a letter into the record to Wisconsin Republican members of Congress from Wisconsin Governor Tony Ivers his objection to the Trump tariffs. Without objection. Thank you. Thank you, Mr. Thank you, Mr. Chairman, very much.
▶ 2:38:30Ambassador Greer, you have a most awful job trying to convince us and the people we represent that the president's trade policies are wise and measured when the truth is they are stupid and bad. The last time the US started a trade war, Smooth Hol tariffs, June 1930, the world did retaliate and we gave the Great Depression that lasted 10 years. I want to quickly run through a few of the ways the logic behind the Trump tariffs make no sense. You you got the math wrong.
▶ 2:38:58According to the people whose research you cited, Mr. Chairman, I asked unanimous consent to enter into the record a New York Times article by former Treasury official Brent Nyman titled, "The Trump White House cited my research to justify tariffs. It got it all wrong." The math error had the effect of quadrupling the tariffs Trump applied on some of our biggest trading partners. Trump accepted some goods, notably oil, but not others, including things we simply cannot produce in the United States. Why tariff bananas? Why tariff cocoa?
▶ 2:39:28Why tariff coffee? We don't have the capacity to produce these things at a scale that meets domestic demand. Trump logic equates any trade deficit with cheating. In fact, he called it rape. But even this stupid logic didn't help Australia or Brazil or Singapore, all countries with whom we have a trade surplus. How does Australia negotiate an end to a trade deficit that doesn't exist?
▶ 2:39:53Some countries have a deficit because we import things that we want, but they're too poor to afford our exports. Perfect example is Madagascar. We buy something like 60% of our vanilla from Madagascar, but they have one of the lowest GDP per capita rates in the world, and they just can't afford many of our products, but we just hit them with the 47% tariff. Trump is hinting that maybe if countries lower tariffs on us, he might drop tariffs on them a little bit or some or possibly.
▶ 2:40:23But Vietnam, knowing that Trump was coming, massively cut their tariffs to appease him ahead of his announcement last week and instead you slapped a 46% tariff on them anyway. So what are the Vietnamese supposed to do? Trump declared a phony national emergency and imposed tariffs on Canada to punish our closest ally for quote unquote fentinel smuggling despite the fact that our own government says the amount of smuggling at the northern border is vanishingly small less than 1%.
▶ 2:40:52How does Canada get out of a tariff imposed on them for doing something that we admit they're not doing? Trump is risking our economy to bring back factory jobs that pay far less than the 8 million jobs that are listed in the Jolts report right now. 8 million jobs available in America and pay far more. And fast growing sectors like healthcare, clean energy, or data science.
▶ 2:41:13The Secretary of Commerce, Howard Lutnik, is on television raving about shifting millions of Americans to work on, and I quote, screwing in little screws to make iPhones. You guys are blasting nearly every product from nearly every country with these tariffs. Senator Tillis yesterday called it quote a trade war on all fronts. It hurts our alliances. It hurts our economy. It hurts our ability to make and keep free trade agreements which is supposedly your job. Ambassador Greer, the world is watching you.
▶ 2:41:42They're watching this hearing across the country. Global markets are in chaos. The US economy and our most important alliances are in serious danger. I had met a couple of nights ago with a dozen ambassadors from Eastern Asia and the conclusion of the discussion was that we are creating a unipolar Asia, an Asia led by China with America excluded. America first is America alone. And meanwhile, you're now serving as acting head of both the office of special counsel and the office of government ethics.
▶ 2:42:12These are both busy jobs in the best of times, but extremely demanding during one of the most ethically challenged presidential administrations in history. It's absurd to think that you're actually doing these jobs. But I just think it's fair to ask if the many hats you're supposedly wearing are causing dangerous mistakes that damage our country in ways that's going to be difficult to recover from. You know, President Trump also imposed tariffs on China. China reported responded with tariffs on agriculture.
▶ 2:42:40European Union today announced $21 billion worth of new retaliatory tariffs on us. China's announced 84% retalitary tariffs on us. The legal pretext you said is that this is a national emergency. You refer to the state of emergency as quote the largest and persistent trade deficit that's built up in recent years. The actual emergency is that markets are slumping, consumer confidence is crashing, and financial forecasts of recession are coming pretty quickly.
▶ 2:43:08And the Fed is projecting that these tariffs are driving prices up. We finally got inflation down. Now we're going to do exactly the opposite. Coming to the table, I don't know. Our trade balance has been in the negative for 50 years. And yet we've built the strongest economy in the history of mankind. This is a terrible way to fix the way of bringing back meaningful employment to our low-income Americans. This is not the way to do it. Mr. Chairman, I yield back. Mr. Arington. Thank you, Mr. Chairman.
▶ 2:43:38Um, I appreciate my friend's comments just to take off on treating low-income Americans. It's no way to treat our workers whose wages have been suppressed because of this unfair and unlevel field, who, by the way, because of the policies of the last four years, have paid a regressive 21% inflation tax.
▶ 2:44:03So our working families and our manufacturers and those who make the wheels turn in this economy have suffered a great deal. But other countries will flat put us out of the manufacturing business, out of the energy production business, out of the food making business if we let them.
▶ 2:44:27I thank God that for such a time as this, he raised up a leader with the political courage to take on the political and corporate establishment that is going to do everything in its power to stop you and the president from hitting reset before it's too late.
▶ 2:44:52before we not only beg for our drug making and our chip making from other countries whom we are totally dependent But before we have to beg to feed our families and fuel our economy, I can't think of other than the deficit a greater threat to
▶ 2:45:23America's economic vitality, prosperity, and national security. 100% unwaveringly, unequivocally in support of President Trump's and your reciprocal trade policy.
▶ 2:45:42I can't imagine anyone along the spectrum from right to politically who wouldn't want head-to-head competition for our guys. And we have allowed this unfair trade dynamic to persist for so long. There's no way out of this without some frontend pain.
▶ 2:46:07And I'm grateful that we have a leader who's not trying to uh de you know diminish that or hide that fact but is transparently calling this nation to persist through this front end so that we have exponential benefits and return to our economy to our workers to our farmers.
▶ 2:46:34There is no other path and there is no other politician in this town that would ever risk what is necessary to risk and exert the courage and will that is necessary to exert to confront this head-on like President Trump and you and and we're with you. I'm with you and I know many of my colleagues are.
▶ 2:47:02Couple Um, when we went through this before in the first Trump administration, we were, I'd say, wildly successful with the reforms in China with new free trade agreements, agreements in five nations that represented almost 50% of our entire uh export markets.
▶ 2:47:30So how important was the reciprocal trade posture in the first administration to getting lower barriers, greater access to those markets where we benefited by 26 plus% in uh export activity. uh our wages went up, uh investment went up, job creation went up, poverty went down.
▶ 2:47:59How important is this posture to getting there? And is there any other way uh Mr. Ambassador to uh to this greener and more glorious uh uh economic pasture uh once we go once we establish uh the reciprocal trade dynam dynamic? Congressman, thank you for for your support and your words. You're you're exactly right. Uh there there are a couple different there are a few different approaches to trade negotiations.
▶ 2:48:26One is the typical one, which is where you ask others nicely to give you market access and they do a dialogue with you for several years and at the end you have no more market access. And then there's the Trump way uh where he says we we'll have reciprocal trade and we can do it my way or we can do it your way but we can work together because we should work together and we should have fair trade among us. And that's what we're seeing now. We're seeing countries come and say we understand the issue. We're happy to talk about this and we know that uh there's an alternative path.
▶ 2:48:54There are alternative pathways here and we can choose which way we want to go and that's the way to do it. I'm grateful for both of you. Thank you Mr. Chairman. Thank you Miss Tenny. Thank you Mr. Chairman and uh thank you Ambassador Greer for your hard work and I'm from upstate New York. This is the home of the industrial revolution. the Erie Canal Quarter, the Fingerlakes, all my region, number one dairy district in the Northeast, number five dairy district in the country. Um, third largest producing Apple County is in my uh district.
▶ 2:49:24Really important when it comes to trade and we have always been grateful for the work of President Trump and your and the administration for trying to understand that we've been hollowed out by China and Asia and other countries and we want to bring those jobs back. really important part of not just the building of New York but the building of the entire United States and our strength uh leading up through the through through to World War I, World War II and into today.
▶ 2:49:46Um I got a couple of questions I just want to talk to you a little bit about because there are a few nuanced issues here dealing with Canada which is my entire northern border. Uh number one uh we are uh have an emerging uh and really strong Fingerlakes wine region and uh many of our wineries have reached out to us. Uh we are at the at the cusp of of putting out some really incredible wines uh groundbreaking. We have wonderful water soil conditions and we're producing top level wines.
▶ 2:50:15Uh a little bit about uh some of these uh markets we'd like to have opened up for us so we can trade and we appreciate the work that the president is doing. However, one of the issues we've experienced and we'd hope that the that you can work on is uh many of our Canadian visitors are not coming to our region. We're dependent on the Canadians to come for commerce. They're a great friend to the north and uh we've seen a 23% drop just since February in visitors to our wineries.
▶ 2:50:42Um, and we just want to know if we can help get your assistance and help in making sure that this sort of very important yet fragile relationship that my district has with Canada, an historically strong relationship, uh, we can continue to work to make sure that we get that kind of trade and and the kind of uh, tourism that we've been getting from our Canadian friends to the north. Certainly.
▶ 2:51:03And and I would note that uh goods between Canada and the United States that follow the rules of the US Mexico Canada agreement, they continue to trade on a duty-free basis, which which makes sense, right? Um, and I would say and I want to I know you're going to jump into this because this is my next beef with but when it comes to Canada, we are grateful and hope that you'll continue to pursue some of the dumping that's been going on against our dairy producers because as I I cited in in my start, we are a huge dairy producer and we're getting unfair treatment.
▶ 2:51:34We think in in the last administration this was not resolved favorably to our dairy markets because Canada continues to bring milk proteins in that uh we think that are in violation of USMCA. and I know you that's what you're going to get to. So, yes. No, it's it's certainly on the flip side of the wineries. So, yeah, that's certainly the top of my list. I would point out that, you know, President Trump reported that he had a a constructive call with Prime Minister Carney uh last week, 10 days ago or so.
▶ 2:51:59Um and and I continue to work with my Canadian counterparts to make sure that that relationship is a is one where we can have fair trade. Yeah, we greatly appreciate and and when it comes to apples, uh we just have to say we are so excited about uh the USR's efforts in trying to reduce some of these market access barriers, particularly with Israel going to zero tariffs. Our apples are hopefully will be sold all around the world. We're famous for them.
▶ 2:52:21We don't get the subsidies that some of the other states get in the state of New York and uh we're hoping that we can do that, including getting our apples to India and around the world to actually grow our New York economy. So, we appreciate all that that the USR is doing that. I I I think that we can have an a a great relationship in the future with Canada and we are really pleased that you're working uh with the prime minister and working with everyone that we can to make sure that that northern border is protected, but also that we're getting the trade that we're so accustomed to with our great friends from the north in Canada.
▶ 2:52:50And uh those are those are primary issues for us. also want to make sure that some of our supply chains uh whether I know this isn't your your sphere but when it comes to aluminum when it comes to copper uh we have some of the best manufacturers and the oldest manufacturers in the entire nation in our region and we're dependent on Canada for those things. So uh when we look into the tariffs and some of the negotiation and I know there's going to be some tinkering with the tariffs as we look into the next couple of months.
▶ 2:53:15Uh we just know that you and the president will work with us on making sure that we continue to keep these legacy businesses that we have across our region uh that were part of our our nation's uh real boom when the industrial revolution was founded. Uh and I might I have to mention it's not technically in my district anymore, but our famous uh patriot Paul River actually started his copper company in my region. Rever copper is still operating today after being founded in 1801.
▶ 2:53:40So, it's really important to New York that we continue uh these legacy businesses and continue to work to bring our supply chains back. And I just want to say thank you helping us with dairy, with apples, and also making sure that those Fingerlakes wines become premier uh and actually continue to grow as we as we see them uh emerging with so much hard work being by done done by so many people in my region. Uh and we're grateful to you and so continue to work. We we appreciate the effort on behalf of uh our district and behalf of the president. Thanks so much.
▶ 2:54:09Well, thank you and I look forward to continuing working with you and your staff on these issues. Thank you, Mr. Evans. Thank you, Mr. Chairman. Mr. Ambassador, I'm deeply concerned about the the tariffs and we are talking about it today.
▶ 2:54:29Philadelphia is the poorest big city in America and it's hurting low people There's a lot of money for a lot of people. Tariffs can only be used in a smart and effective way and I feel from what I heard it is not. It is something that we are concerned about and I like start out with this question. Ambassador gear my first question.
▶ 2:54:59What specifically is the president hoping to help the residents of Philadelphia deal with the higher cost of living that these tasks would put on the average household? Does the president have a very specific plan and strategy to address the nearterm harm it has Uh, Congressman, the president wants to ensure that we have good manufacturing jobs that pay higher wages to your constituents, just
▶ 2:55:29like what happened in the first term. He wants that to happen again, that they can have more money, better jobs in stable uh, environment and reshort manufacturing at the same time. So, what would you say specifically would you say? How would you describe that? Well, I would say uh to to your members and your constituents that we've had a long period of 5 million manufacturing jobs going away. It's dangerous for the It's dangerous for our country. It's bad for our economies and our families.
▶ 2:55:54And the president is taking action to create economic conditions to have more factories here, jobs here in their communities where they can have the types of income that they need to have to have stability for the working class, for the middle class, not just for the super rich who go and get three or four degrees, but for people honest, hardworking Americans who graduate from high school and need a job and they can have one that's stable and supports our manufacturing. Mr.
▶ 2:56:19Ambassador, Pennsylvania exports today 46 billion in manufactured product. These exports support 150,000 people in jobs in in the state. I'm concerned that the threat of retaliation from the trading partners will further Pennsylvania. So, can you specifically speak to that issue? Yes, this is something that we watch really closely as well.
▶ 2:56:49U and so in advance of of the tariff action, uh I had many conversations with our major trading partners and we told them uh you know, wait and see what happens on April 2 and then we can talk about what comes next. And so now most of our major trading partners have said we're not going to retaliate against you. We want to talk to you about how to have more reciprocal trade. And that and that's a good outcome.
▶ 2:57:12I want to also talk about industry and business, the effect that it will have, specifically when you talk about Philadelphia on small business. Can you speak to that? Certainly. Um, I I've actually tasked my staff to work with the Small Business Administration to make sure we're getting the feedback we need from our small businesses. I have an advisory council on small business at USR and I've asked my staff to convene that council so we can hear directly from them. um because we want to make sure that we are hearing feedback in real time.
▶ 2:57:42I can give it to the president. We can understand uh how the program is working. Like to thank you, Mr. Ambassador. Thank you, Mr. Jim. Thank you, Mr. Fitzpatrick. Thank you, Mr. Chairman, for holding this hearing. Uh, Ambassador Gur, thank you for being here. Uh, and thank you um for your uh your commitment to spend time with this committee today and answer everybody's questions. Uh, leveling uh the trade relationship the United States has with other countries.
▶ 2:58:08uh I believe must be a a bipartisan goal especially when our nation's security and well-being are on the line. Um I do believe that the means by which we accomplish that vision however matters a great deal. Uh my priority uh which I'm certain um that you share and I hope this whole committee shares is to ensure that any long-term economic gains which the American people uh could achieve in a more balanced trade environment are not washed away by the near-term pains they may feel at their local supermarket, hardware store,
▶ 2:58:39pharmacy, or restaurant. Um, I believe it's essential that Congress uh and the administration come together to find that middle ground to maximize the benefits and limit the cost of our nation's trade policy. Uh, above all else, we must deliver greater certainty and economic stability for our consumers, our workers, and our families. I want to zoom in on medicines in particular.
▶ 2:59:01Sir, um what work do you believe can be done with our closest partners and American companies who are operating in the uh European Union to ensure that the cost of uh distinct uh innovative prescription drugs and medical devices are affordable for our nation's seniors, particularly those with rare diseases or disabilities? Well, I I think if we can have a supply chain that's more secure, more resilient, and more local, that's going to be something that's going to help with efficiency.
▶ 2:59:30this this idea that we're we have this very fragile uh supply chain where we ship you know initial inputs from China to India and they go elsewhere and they get finished in another country and they come here that that may work that may work in a world where there's just in time manufacturing and where you're ignoring uh manufacturing jobs in the US but in a world like we're seeing now where there's conflict there are pandemics there are wars that model doesn't work very well and the costs become very high and so if we are able to reshore large aspects of that or have it with
▶ 3:00:00close allies. That's going to be helpful. Uh switching gears to national security. Uh I want to thank you for your work um to end the dimminimous exemption for the People's Republic of China. This loophole has been uh more than an economic giveaway to foreign competitors at the expense of American retailers and manufacturers. It's also allowed our adversaries to funnel fentanyl and other synthetic opioid drugs into our communities.
▶ 3:00:25Uh I was down at the El Paso Intelligence Center, Epic as it's called, uh their chief complaint, and this is coming from the Department of Homeland Security. They focus on the dimminimous exception as a major vulnerability for fentanyl getting into this country. So in addition to the manufacturing issue, we had the fentanyl issue as well.
▶ 3:00:42as this administration evaluates how uh the US should alter or eliminate the dimminimous standard for other nations beyond the PRC um particularly those for which have um credibly abuse the process uh to the detriment of countless uh Americans health and safety what metrics do you believe should be uh prioritized so so dimminimus is is it's really a customs and border protection issue it's not my jurisdiction but I think some of the things you've talked
▶ 3:01:12about um you know loss of revenue uh tariff evasion through use of dimminimus uh counterfeits coming through uh the dimminimous program uh illicit substances coming through the dimminimous program these are all the types of things that need to be captured whether it's from China or elsewhere I think it's a real problem and I think customs border protection should look into that and finally very briefly sir on the USMCA recognizing that the uh the agreement is facing a a sunset review uh process that needs to be completed
▶ 3:01:42by July of 2026. Can you share any details about how you anticipate that review will be conducted? Certainly. Uh there are a few parts to this. First of all, there's a public consultation process that's set out in the statute that USR will follow. We'll follow the law. There's a congressional consultation process which of course we'll follow.
▶ 3:02:02Um, when I think about ways to enhance USMCA or our relationships with our trading partners, one thing that I'm very focused on is making sure that other trading partners don't benefit from the agreement without agreeing to the obligations of the agreement. I'm thinking of China or or other Asian countries that want to use Canada and Mexico as an export base into the United States and benefit from the USMCA. I I don't think that's the right approach. We need to change that. Just one followup.
▶ 3:02:29Will USMCA qualifying trade which was not covered uh under the April 2nd tariffs continue to be excluded uh in advance of this review to ensure uh certainty for our manufacturers? Um that that is currently the status uh right now and and again I'm not I'm not on the you know homeland security front here but I understand that Canada and Mexico uh have been uh working with the administration on those issues and so for now that that status continues. Thank you. I I yield back Mr.
▶ 3:03:03I now recognize uh Representative Fishbach from Minnesota. Thank you, Mr. Chair. Um and and thank you, Ambassador, for being here and um for all of the opportunity that we've had to have conversations or um discussions about what's what's happening. And um and thank you for answering all of the tough or maybe not so tough questions today. So, I appreciate and and I you may already know, but I represent a large uh rural mostly agricultural district. And so, we do it all.
▶ 3:03:31We've got corn, soybeans, hogs, turkeys, and dairy. And um but we also grow sugar beats. So, I was going to ask you just I'm a really I'm a strong supporter obviously of the sugar program um which has allowed our farmers, sugar refiners, and endusers of that sugar to invest in strong and robust domestic sugar industry. So, and so my first question very quickly, will will you commit to working with myself and other members to protect the sugar program and to promote the domestic industry?
▶ 3:04:01Uh, definitely happy to do that. Thank you very much. I appreciate that. Um, and many of the other farmers in my district rely on exporting their products around the globe. While China is a major customer of US agriculture, farmers are consist constantly uh searching for new market access and expanding market access in other countries. We've seen reports of numerous nations coming to the table and I think it's over 50 now with uh President Trump to negotiate new trade agreements.
▶ 3:04:28Um what are the opportunities in these negotiations to increase access for far American Uh certainly as I think was mentioned earlier uh perhaps by Congresswoman Tenny, you know, Israel has come and we've had a trade agreement with them for a long time. People are surprised to find out that despite the trade agreement, they still have tariffs on some of our agricultural goods. And so they've offered that that's something that they're willing to to look at.
▶ 3:04:52Uh we've heard from Vietnam, we've heard from India, we've heard from Argentina, we've heard from all kinds of countries that they're interested and not only getting the tariffs down, but getting down the non-tariff barriers, which often are are more problematic than the tariffs themselves.
▶ 3:05:06So I think there's a lot of opportunity there if these countries are willing to really engage in reciprocal trade and and I think I know the answer but I just want to just you know will you work with me and other members of this committee to make sure that farmers have a voice in the negotiation so that we are heard and are part of it. Yes certainly we have a series of advisory committees that involve agricultural stakeholders. Uh we manage those jointly with the US Department of Agriculture.
▶ 3:05:32I've already talked to Secretary Rollins about this and the importance of meeting with these committees so we can have their feedback directly and we are talking a lot about reducing America's reliance on chi uh Chinese imports to our country and I and I think that's important and I'm sure you do too. Um I think we learned a lot during COVID and over the last few years. But um I think it's also important that we give farmers the opportunity to reduce their reliance on exports to China by providing them with new markets.
▶ 3:05:58And I know that we just kind of are talking about that, but I I think it's important that we say it over and over that we make sure that we include those farmers and that we are looking for new markets because that is what they want to produce and they just they want somewhere to sell it.
▶ 3:06:12So, um, maybe that's not even a question as much as just a statement, but, um, I appreciate your willingness to work with us that protecting the sugar program, making sure our farmers are involved in these negotiations and that we are doing our best because it's been the last few years that we have had we have not had that kind of outreach to create new markets and find new markets for our egg products.
▶ 3:06:34So I hope that we are um that we are going to be very aggressive about that and really helping our farmers because uh it's important that we um strengthen and build um that market and those and the farms in our country. So thank you for being here. Um I hope I made it real easy on you because you've had a tough day. So but thank you very much and I yield back, Mr. Chair. Thank you. Thank you. I now recognize Mr. Snyder from Illinois for five minutes. Thank you, Mr. Chairman.
▶ 3:07:02And I'm not going to make it any easier on you, Ambassador, but I will pick up on what uh Miss Fishbach and and Schweer before said. Ambassador Greer, yes or no? Didn't Israel zero out all tariffs on US products before President Trump announced his across the board tariffs on April 2nd? Uh they indicated they're willing. Just yes or no? Uh they they did not do it yet. They announced they wanted. They announced it, but yet President still imposed 17% tariffs on Israel. Ambassador Greer, what's our trade balance with the elephant and furs seals, petrols, albatrosses, and penguins living on herd and McDonald Islands?
▶ 3:07:32Uh, they're part of Australia's customs union, but they're separate and I'm going to reclaim my time. The president has imposed specific tariffs on herd and McDonald's islands while not taking any action against Russia, Bellarus, North Korea, or Cuba. And I don't want to uh I I don't want to disappoint my mom and my wife or have them yell at me, but Mr. Greer, I'm going to say what I think almost everyone is thinking. WTF? What's the president thinking? What did he and you think was going to happen after unilaterally declaring a global trade war?
▶ 3:08:02Did you expect the so-called liberation day to become liquidation week, destroying more than 10 mil trillion dollars of value and moving us from an extended bull market into a selfinduced bear? Did you intentionally plan to decimate Americans retirement accounts and 529 accounts for their kids' education? Did you and the president anticipate raising prices for American families already struggling to make ends meet?
▶ 3:08:28Did you mean to make American businesses less, not more competitive in global markets? was the intention with the largest tax increase in US history to put the United States and maybe the entire global economy into a recession because of what Wall Street Journal editorial board. Let me repeat this. It was the Wall Street Journal editorial board said is the dumbest trade war in history already.
▶ 3:08:54Diane Swank, the chief economist at KPMG, is saying that her baseline forecast is a recession starting this quarter. Jaime Diamond and JP Morgan have raised their probability of recession to 79%. The Wall Street Journal reports the betting markets have it at 70%. And Goldman Sachs recently again raised their likelihood, the second time since this trade war started to 45% and I expect that will rise again.
▶ 3:09:19In indeed by the time you have finished this hearing, I wouldn't be surprised if we already were in a recession. Less than a week after President Trump's declaration of again the largest sales tax in US history, global markets continue to royal as a result of tariff-based recession fears. The president's newly imposed tariffs have real world impacts on every one of my constituents who will see higher prices at the grocery store.
▶ 3:09:46Shortages of critical products and less money in their retirement accounts and the accounts for their kids' education. American families deserve relief. But instead, thanks to President Trump and you, they're heading to the store to panic buy essentials before retailers raise their prices. I've heard from literally literally thousands of constituents about the pain that President Trump has said this country will suffer as a result of these tariffs.
▶ 3:10:11They have written to me sharing that they have lost as much as 20% of their 401k and 529 accounts in the last week alone due to market fluctuations. They're responding in real time to the president's announcements of arbitrary and capriccious tariffs. Seniors who recently retired are worried about having to return to work to make sure they can make ends meet. and today wonder if they will now continue out if they will now outlive their retirement savings. Small business owners are worried about laying off employees.
▶ 3:10:39Large companies in my district are preparing their next earnings report for investors and telling me that the impacts of these tariffs are material. That's business speak for the tariffs are going to have a real adverse effect on their operations and likely adverse effect on their cash flows. Make no mistake, President Trump's trade agenda is slowing economic growth and job creation, weakening US global leadership, and increasing the cost of doing business in the United States.
▶ 3:11:05These tariffs make life for Americans more expensive, make our nation less secure, and our citizens less prosperous. Congress must take back its constitutional authority to stop the chaos and the pain President Trump is inflicting on American families and dig us out of what could be a self-inflicted recession. Before I ask a question with my limited time, I ask unanimous consent to submit into the record the CIA World Factbook entry for Herd Island and McDonald Island. Without objection.
▶ 3:11:34I also ask unanimous consent to submit for the record an article from Scientific American. The Herd and McDonald Islands are pristine biological wonderland. The subtitle of the article is Trump's tariffs put a spotlight on the uninhabited herd of the McDonald Islands which comp comprise a remote volcanic refuge for penguins and seals and a UNESCO World Heritage site. This just once again illustrates that these tariffs are not strategic. They are not targeted.
▶ 3:12:00They are arbitrary and comprecious and hurting our economy and our American citizens. I yield back. Thank you. I now recognize Mr. Moore from Utah for 5 minutes. Thank you, Mr. Chairman. Um, Ambassador, thanks for being here. And as I've said to you before, I can't tell you how much I appreciate the communication and the ability to dialogue.
▶ 3:12:22Uh, this today, this hearing's, in my opinion, one of the most important hearings that that that we've had and it's been um very important for folks to be able to hear this out. And thank you for providing um details and and responses. We've talked a lot about trade deficits um today in this hearing and I have I have I have concerns about how we went about some of the calculations with with just focusing on imbalance but that that completely aside what I wanted to actually bring was the other side of this equation.
▶ 3:12:51So we run massive trade surpluses in services with just about every major economy in the world. Uh especially in high value and and high employment technology software industries and recognizing that there's digital service taxes that we don't like and we we we try to address some of that on the tax side and we're going to work on retalatory t tax side with that in this committee actually the Europeans, Koreans, Japanese, they're all allowing us to our US tech firms to run surpluses in their markets for a reason.
▶ 3:13:20We have the best talent and the most skilled innovators in the world. My my question here is what are the consequences for American power and national security if they were able to retaliate and restrict access to American services in their market because we've chosen to restrict goods in their market. in response to that.
▶ 3:13:38So the the good news on this is all of these countries, most of them have said that they are not going to retaliate and they want to talk to us and they're mindful that even though we have surpluses in many of these areas, they still have a lot of barriers against our folks, right? And this this giant book that we put out that I hope one day we never have to put out again, a lot of this are about the services barriers we have including in our in our uh friendly partners. So, so my expectation is that uh you know they will bring those barriers down. That's my expectation.
▶ 3:14:08And this is where I I draw some optimism. But we're still but we're really early in this. If this is prolonged, does that does their position on no retaliatory commitment? Does that Wayne? And and that's something we have to be we have to be hyperfocused on and we've got to be vigilant. I have a big concern and I would to what extent would you have a concern? um are are we at the risk of losing the AI race to China if we lose our innovative edge and our exporting advantage over China?
▶ 3:14:37So so I think that we benefit from having uh huge innovation here in the United States. We have an economy uh that cultivates innovation. We prioritize it. We have an intellectual property system that protects it. You don't have those kinds of things in China, right? You don't have that level of protection. You don't have that level of attractiveness. Now we can't be complacent by any means. I think it's incumbent on us to continue to have, you know, domestic laws and incentives to make sure that we're innovating here and it's important to have manufacturing because manufacturing innovation go along with each other. I'm going to add to that.
▶ 3:15:06So, um, really what this boils down to and I'll try to make it a little personal here. Um, you and I went to rival universities. We're work we're still working through some of those challenges for now. Yeah. Uh we may never see eye to eye on it, but we were both probably 40 minutes away from some world-class ski resorts on the Wasatch back. Uh during those college years, um I uh during college, I always went to the sports den. It's a local sporting goods store and I've known the owner, Mark, for over 30 years.
▶ 3:15:35I took my um he's he commit I mean, every banner at every little league thing has his his banner there. He's committed he's committed to the to the neighborhood, to the community. He uh he's weathered he's weathered the um the e-commerce revolution. He's weathered uh he's weathered COVID. He's been able to to sustain this business um through some of the toughest times. I took my son's bike in there on Saturday to get fixed. And I've never seen him like this.
▶ 3:16:04I've never seen him so anxious, so nervous about what's going. He pointed to everything in his in his shop. You know, I I I buy ski equipment from him. We rent stuff rent stuff from them. the gear. I've never seen him like this. Um and uh and I would ask you like what do I say to him? Like he's really nervous right now and I know it's and I know it's impacting. I know it's just a lot of concern. What do I what do I say to him?
▶ 3:16:28Well, I wish there was a silver bullet for this uh congressman because I'm sensitive to this and you all have constituents whatever side of the aisle you're on who who are talking to you about this. I the challenge is that we've seen 90,000 factories leave the United States and we can have either the status quo and continue to lose that and continue to be dependent on other countries in many cases foreign adversaries for our businesses. I mean that's to me that's very fragile.
▶ 3:16:54To me that's very high risk that we have to be so import dependent for for our well-being. We're always going to trade. We have to have this reset. We need to move quickly. We have countries in right now trying to negotiate their way to more reciprocal trade. a country like China, they're always going to have their own agency and make their own decisions and they've never been a reliable trading partner in a lot of ways. We've always kind of been at the mercy of that. So, you know, it's hard to go into your constituent and say that because they'll say, well, you know, Ambassador Greer said this kind of macro thing. I understand that.
▶ 3:17:24Um, please please keep in touch. I mean, as as we hear these uh, you know, the effects of this, it's good for me to know about it so I can tell the president and I can continue to communicate this. We we've heard stories about this and and we are concerned. So that's what I said to him. I said to him because of our communication. He's still just as nervous.
▶ 3:17:43And that's just why I wanted to share with you and your team how important and crucial your job is over the next little bit is if this is looming, you have an incredible opportunity to do some of the good we did in the first Trump administration to get us to there. We're not there. I'm scared that we're not going to get there. I don't see the strategy to get there, but I know we can. And I'm really have a lot of confidence in you and your team to be able to get us there. And I yield back. I now recognize Mr.
▶ 3:18:13Petta from California for 5 minutes. Thank you, Mr. Chairman. I appreciate that. And Ambassador Greer, thanks for being here. I admit uh before this week, talked to a lot of my colleagues about you. They actually said a lot of good things about you. You had a good reputation until this week, I have to say, because I actually wanted to work with you on solutions when it comes to free trade agreements. I think we still can once we get past this, and I hope that's the case.
▶ 3:18:42But unfortunately, you're defending a policy here from President Trump that's absolutely incoherent and inco. It's a self-imposed tariff regime of 10 times the amount of tariffs that were in place before this president took office. It is the largest self-inflicted wound to our economy in history.
▶ 3:19:01A self-inflicted wound that if it stays in place, it could constitute the largest tax increase on working families in more than 40 years, costing households more than $3,800 per year. A self-inflicted wound that prompted one of the largest three-day moves on the markets since World War II. And it's a self-inflicted wound that's leading investors to expect a severe economic slowdown. Eight years ago, this president talked about American carnage.
▶ 3:19:29Little did we know that he would create economic carnage that is spreading something similar across the entire global economy. Now, the reason for these tariffs is based on a national emergency that we have trade deficits according to him and you. Unfortunately, the president's thinking about trade is reflected in this policy.
▶ 3:19:50This weekend, after the markets tanked, after small businesses fredded, and after the president played golf all weekend, the president said, "I consider any trade deficit a loss." That type of scorecard thinking, combined with the president's 40-year fetish for tariffs, that has put this policy in place and put us in the global economy in this position.
▶ 3:20:12Now I know the president is painting all trade deficits as bad but they are a product of larger macroeconomic factors relating to a number of things as you know well savings investments cultural demographics and so on. But the president is acting completely irrational when it comes to trade deficits. He believes that trade deficits are subsidies paid by Americans to other countries. His scorecard ignores our trade surpluses and services to the tune of 250 billion annually.
▶ 3:20:41his he is oblivious to the relationship of trade deficits to foreign investment in America in that when we send dollars abroad for goods and services most of those dollars ultimately come back to America and he refuses to grasp that tariffs are taxes paid by American importers and Americans not foreigners. A perfect example of this unreasonleness is our reasonable trade deficit with Canada.
▶ 3:21:05The reason we have a trade deficit with Canada is because starting with FDR, we entered into an agreement that would sell us oil at well below market prices. We entered into and maintained that deal because we ma and we maintain a trade deficit with Canada so that we can buy cheap oil, which is a huge benefit for America. And if we took that oil out of our trade relationship, guess what? We'd have a trade surplus. Yet Trump says we're getting ripped off even though we are actually getting the benefit of that sweetheart deal.
▶ 3:21:32Now, absolutely, sometimes a trade deficit is a loss. Foreign trade barriers are a problem that includes tariffs and non-tariff barriers. But there are ways to remedy these things. Free trade agreements, as I talked about, free trade agreements that don't require a tariff policy that cripples our economy. Yet due to the the president's fetish for tariffs and superficial thinking on trade deficits, the president has impoed imposed a trade policy that makes the global baseline of 10% with countries that have trade surpluses like Singapore, Australia, Netherlands.
▶ 3:22:02Countries we have FT that have we have free trade agreements are getting tariffs at 10%. Countries that are free trade countries are getting tariff at 10%. It does make no sense. It make no it makes no sense of exactly what the president wants to fix or how he's going about these tariffs. Now, it's really contradictory based on the l the lack of clear messaging out of your administration.
▶ 3:22:27If other countries eliminate their tariffs and we eliminate ours, that's just deal making and we don't raise revenue and businesses don't relocate to the US. if it's a permanent revenue source and you want to relocate to the US then going to have these tariffs permanently and there are not going to be any deals. So what is clear is that you can't have it both ways. Additionally, tariffs undermine our national security as we're seeing in the Indo-Pacific region. Look, I know the president wants to bring back the rust belt. I get that.
▶ 3:22:55But a big part of that is political. It's nostalgia. And nostalgia, as they say, is the rust of memory. We are not victims here. Our economy is the envy of the world partly because it was our choice to invest in other countries over saving. It was our choice to have bilateral trade deficits. This is not some unexpected crisis here. This is no extraordinary or unusual threat. This is because we chose to invest in other countries where labor is cheaper and therefore products are cheaper.
▶ 3:23:21And as we know, it's okay for working families to want to pay low prices for products in this country. I know that the president is saying we're getting screwed, but the fact is is that Trump is screwing us with these incoherent inco tariffs that in the short term and in the long term, domestically and internationally and for our economy and for our national security, they are making us weaker. Thank you. I yield back. I now recognize Miss Vendine from Texas for five minutes. Thank you very much, Mr. Chairman.
▶ 3:23:49Ambassador Greer, I'm sure it's been a long afternoon for you, but thank you for sitting it out. Uh, I want to thank you for being here today and for your engagement thus far on trade matters that are very important to all of us. Quite the contrast from your predecessor. Um, I know that we've heard that the trade deficit, according to the president, isn't fair. But it's fact, is it not? That we are experiencing 1.3 trillion deficit in trade.
▶ 3:24:14That Americans pay out over $360 billion last year in tariffs, and yet the US collects less than $80 billion. I would say that that's fact. That's not just what the president thinks. It's fact. Um, and let me be absolutely clear. President Trump's tariff policy is not a fetish. It's results driven. For decades, we let our trading partners take advantage of us. China flooded our markets with subsidized steel. India slapped double-digit tariffs on US goods.
▶ 3:24:43And the EU buried our industries in red tape. And meanwhile, Washington shrugged. But thanks to this administration's unapologetic use of tariffs, countries like Israel, India, Vietnam, Mexico, and the European Union are back at the table. And they're engaging because they know the United States is now finally serious. And when I hear Democrats criticize tariffs as some kind of economic sin, I have to ask, what's their alternative? Appeasement.
▶ 3:25:12President Trump's approach isn't theoretical. It is producing concrete results as we have seen in the last few weeks. Results that the last administration only talked about. Tariffs are working and not because we like them, but because we need them. They're leverage. And now they're actually making deals from a position of strength. I think that is very important.
▶ 3:25:36In North Texas, look, I've seen firsthand the value of trade that is fair and reciprocal and firmly rooted in America's strategic interests. These are principles that are championed by you and President Trump. And I also understand something too many in this town seem to forget is that trade without enforcement is surrender. And under the previous administration, enforcement was weak, inconsistent at best. Mexico violated its obligations under the 1944 water treaty. And they violated the USMCA with impunity.
▶ 3:26:05And American businesses were the ones that had to pay. We saw it firsthand with the case of Vulcan Materials, a company that operated lawfully in Mexico for decades, but then had their property invaded, shut down, and seized by Mexican armed forces. As we approach the USMCA review, can I ask how the administration is planning to protect these American business interests and ensure that Mexico compli complies with its Yes, certainly, and thank you for your comments.
▶ 3:26:35uh you know what we see is that Mexico despite their obligations under the USMCA continues to discriminate against US companies and US products. Uh we've seen this particularly in the energy sector for example where they have favored state-owned industries over American industries which are cleaner and efficient. Uh you mentioned the situation with with Vulcan. That's something where we're paying attention.
▶ 3:26:58um Mexico, you know, we want a case against them about how they treat our our corn and they they have a little u you know, constitutional amendment they're doing. We're watching that very closely to make sure they don't hit that. So, there are variety of unfair trading practices that Mexico has or threatens to have where we're watching that very closely and we'd expect any u renegotiation or review of USMCA to focus on those types of issues. Excellent. Thank you.
▶ 3:27:22And while the tariffs are seeming to make progress in the right direction, I'm still really concerned with China's uh third uh country subsidies and their trans shshipment um to the steel and aluminum industries specifically in my district. That is very important which have enacted uh and enable them to evade our duties and our tariffs. Can you comment on the specific actions that we can expect to see from this administration in terms of cracking down on trans shipment and duty evasion through third uh country circumvention?
▶ 3:27:49Uh certainly and this is for example you you mentioned steel and aluminum. The president recently tightened exclusions and exemptions under steel and aluminum because of those types of issues. Um I think that we need to pay attention to uh whether goods coming in from you know Mexico and Canada for example whether they contain uh a lot of Chinese content. You know some of this is customs and border protection needs to do more enforcement. I know that they're focused on this.
▶ 3:28:13Uh but I think that we need to make sure where we have trade agreements that that the the benefits of the agreement are going first to Americans and then you know of course to trading partners who are who who follow the rules and we have to have enforcement and enforcement means tariffs. People say they want enforcement but in the trade space enforcement means tariffs. Um so we're we're going that direction too. I'm concerned that our current trade remedy laws will not suffice which is why I'm leading the level the playing field 2.0 act with Missul. Do you agree it's time for Congress to update trade remedy laws? Oh I certainly agree with that. Yes. Awesome.
▶ 3:28:43All right, Ambassador, we're at a pivotal moment. We finally have a trade policy that doesn't just talk about fairness, but it actually demands it. The Trump administration has sent a clear message. The era of taking advantage of the United States is over. Thank you again for your testimony and leadership, and I yield back. Thank you. Thank you. I now recognize myself for five minutes. And I just want to say thank you, Ambassador Greer, for taking the time to speak with us today. Um it's great to uh hear a voice of reason.
▶ 3:29:10Um, I want to first thank you for including Germany's withholding tax on IP on USR's list of investment barriers in the national trade estimate and I look forward to working with you on this and ensuring fair treatment of American businesses across the world. I I saw the list and that was one of them uh section 49. So, thank you very much. Um, I am from a district the second largest egg district in the country. uh number one in in cattle, hogs, uh corn, soybeans, and so forth.
▶ 3:29:4020% of our our a production uh in the United States goes to the export market. So, my hope is to see tariffs imposed last week quickly lead to fair and reciprocal market access and to end many of the long-standing agricultural trade barriers around the world. I mean, that that that is really my hope. So, if I may ask you, it's a it's a really uh interesting time. We have 70 countries that that President Trump said last night, 70 countries that want to negotiate, which is incredible.
▶ 3:30:10Uh can you talk to me uh do you have the staff and resources to manage all these uh these negotiations at this time and and how can we help? Thank you. Uh I of course could always use uh more staff. Uh we had some folks uh leave us career folks leave during the last administration. Uh we have some we have my deputies who are currently going through the confirmation process, but we have a strong staff.
▶ 3:30:36Uh we have most of our political appointees in we have career veteran USR folks who know these issues who have been there for many years. I know them from the last time I was there. I work very closely with them. This is a situation where we have embraced uh the agency and these folks are truly at the tip of the spear. They're the ones who helped put together this book with all the non-tariff trade barriers uh that we're putting together.
▶ 3:30:58So, so they they know they know they're brief, they know what they're doing, and when the and when the countries come in, uh, you know, there's not a lot of extra homework that needs to be done because we know exactly the barriers we're targeting. So, we're doing our best with what we have. I always welcome more staff, of course. Oh, that's great to hear. So, so there's two two types when it comes to trade. Obviously, there's the barriers of concerns, but also there's the opportunity I think about agriculture that we can expand our markets to the UK, to India, to Kenya. uh there's uh there's so many areas that we can expand.
▶ 3:31:27Can you just touch on that on on you know we're negotiating with 70 countries but then we also want to expand these markets these other markets. Can you just briefly talk on how we can create expansion for agricultural community? Certainly. Um again the foundation of the president's action is to achieve reciprocity because we think the lack of reciproc we know the lack of reciprocity is a driver of of this trade deficit that's left us in such a challenging situation.
▶ 3:31:53And so as you're seeking reciprocity and again we have countries coming and saying we're interested in reciprocity. Part of that is making sure that they're treating us as we treat them. Uh that means that they have to lower their tariffs. They lower their non tariff barriers and that's where you get the market access. That's where you get expanded markets. Uh that's where our a and other producers have the chance to really get their foot in the door instead of little bits and pieces here and there or an uncertain access. You get real access. You get reliable access. Something that our farmers can count on.
▶ 3:32:22So, so just to clarify that, so I can tell my farmers by the end of the day after this is all settled, we should have dramatically expanded markets for them. Would that be a fair statement? I I think that's the expectation. I think that's the expectation. We we certainly want to I mean, listen, with some countries, uh, it it's easier. They have fewer barriers. With others, it's harder. It's going to take some time. Uh, and in the meantime, they'll they'll have that tariff.
▶ 3:32:45But I I my hope is that we can have a lot of these countries have reciprocal trade with us and make it we can be more competitive whether we're farmers or manufacturers or producers if we have real access to these other markets be more competitive here and produce here. Y um I want to thank you for your response to my letter to the USR's proposed measure on Chinese uh built marine vessels and for discussing it with me uh last week.
▶ 3:33:09The proposal of the USGR to counter China's ship building industry would significantly increase freight costs on US soybeans and soy products in turning in turn making the price of US soybean products uncompetitive versus other countries. I'm hearing from my constituents that global soybean orders are simply being cancelled and grain shippers cannot secure freight past May due to this uncertainty. I I just want to hear from you again.
▶ 3:33:31So, so what what can I tell my soybean producers on the largest in the country uh to give them some peace in in in this matter and what's happening? Uh well, first of all, we should have final decision on that by the middle of this month. Um second of all, there were a lot of proposed measures uh in that section 301 action on ship building. Um I think that and this could have been a communications issue. I think some people thought that all of those measures would be imposed. Those were proposed measures for people to comment on and receive feedback.
▶ 3:34:02We've now had that process where we've had the feedback and now we consider which of those measures is most Thank you very much. I now yield myself back. Um, now I recognize Mr. Gomez from California for 5 minutes. Um, thank you so much. I want to just get to the point. I want to start off by making sure we're speaking the same language. Mr. Ambassador, do you agree that tariffs are attacks? Yes or no? uh their tax on foreign goods. Okay.
▶ 3:34:29So, I'm glad you here say that because the also economists say that 98% of that tax is passed on to the American consumer, right? 98 to 99% is passed on to the American consumer in higher prices that and it's going to fall disproportionately especially on working Americans. So, higher costs when it comes to food. 40% of our produce are produced out of the country, cars, clothes, shoes, household goods, all of it.
▶ 3:34:57And yesterday you said, quote, there will be some short-term pain. Um, I want to know, and I think my constituents want to know, how long is shortterm pain going to last? Is it 24 months? Uh, I don't think it's 24 months. No, two years. I don't think it's two years.
▶ 3:35:19The reason why is it three years it's is it a month because because here's the thing you also said yesterday the other thing you did say yesterday you said the trade deficit the trade deficit took was uh grew over 30 years. It didn't happen overnight. So this problem is not going to be solved overnight. So you're saying on one hand it's not going to be solved overnight but then the long-term pain it's going to be a short-term pain. That doesn't compute. People don't believe it. And here's the thing.
▶ 3:35:49Just yesterday, it was sp it was said that it was going to be a $3,800 a year increase falling on working families and the cost of higher prices. It increased to $4600. We had to actually cross that out because we made this board yesterday. What is the uh tax increase going to be tomorrow? Is it going to be 5,200? So, and the reason why is that we have definition different definitions of short-term pain.
▶ 3:36:19What what was your last before beginning confirm at USR, where did you work? Uh, I worked at King and Spalding. King and Spalding. How much does a partner make at King and Spalding? Oh, well, it it depends on a lot of different factors, but it makes I don't I can pull up your financial disclosure. I don't have it in front of me, but one of the things that we're shown it's about $1.5 million. My constituents don't make that. The average American consumer doesn't make that.
▶ 3:36:46The way we do it is every single month we look at our budgets and see how much we spent and then actually have to decide what do we have to pull pull back on. I grew up in a mobile home working several jobs. I know what it means. Here's the thing. You also you have a you also have a cabinet of billionaires. You have Lucknik. You have Bessent. You have the president himself. Elon Musk, I mean Donald Trump who has billions.
▶ 3:37:14So for them, $4,600 doesn't mean anything, but for the average worker, it does. So this is where I say like it's you guys are out of touch when it comes to things. And I recognize you're working a lot of a lot of different jobs. So I'm going to move on to ask a question. In your testimony, you said Miss Sanchez said you said you are the acting head of special counsel. Aren't you also the acting head of the office of government ethics? I was recently assigned to that position. Yes, correct. Government. So, let me get this straight.
▶ 3:37:42You are the chief uh USR representative, the active chief of ethics. You're also the chief whistleblower. And now you're leading negotiations of 70 countries. So, where's your priority? Those other other jobs or is it the the trade agenda? Well, my my first job is USR and we have staff at the other agencies. The reason why it doesn't seem right. Here's why. Because I've learned over the years, if you basically if you want to make somebody feel special, you give them more titles.
▶ 3:38:09Cuz in in in the end, who did um Donald Trump said was actually running the trade agenda? Well, the president commerce secretary Lucknik. That's who he said. Here's another question. Um are you using signal to communicate with the executive branch? Yes or no? With the community. Uh we do some logistics from time to time. Okay. Well, make sure are you uh make sure you're uh as required by the Presidential Records Act and Federal Records Acts that you're you're submitting those for posterity.
▶ 3:38:37We'll talk to our general counsel required by law. Also, do you still stand by the formula that was used to assign the tariffs? Oh, yeah. The White House economist. Yeah, it's driven by the deficit. Okay. The reason why is that conservative economists have said that this formula was actually there's miscalculations in the formula that some people are even saying that it was um Chad GPT was used to come up with this. Well, that's not true at all. So, here's here's here's the reason. Completely false that GPT was used.
▶ 3:39:04The reason why is like you nobody has confidence in what you're doing because you're you're basically you guys are saying trust us. Trust that it's going to be short-term pain. But here's what we see. we see a plan that doesn't make any sense, a formula that has flaws in it that people have torn apart, that you seen um the price increase and the stock market crashing and red lights blinking on a recession. So, and then you impose tariffs on an island that is inhabited by penguins.
▶ 3:39:30So, the consumer confidence is plummeting and it's going down, down, down, and you guys are saying, "Trust us that the Republicans, Donald Trump, Elon Musk, and you guys know what you're doing." So, that doesn't pass the smell test. It doesn't make any sense. We worked on other issues before and I hope we can work on other issues moving forward, but you guys need to be straight on who's running the show because this is going to fall and hurt the American worker. With that, I yield back.
▶ 3:40:01Miss Malakus. Uh, thank you, Ambassador. I uh very much appreciate your testimony here today and I understand the president's goal of wanting to reduce unfair uh tariffs that are placed on the United States that he wants to level the playing field that he wants to reduce the trade deficit that he wants to remove barriers to entry. He wants to reshore manufacturing. Um I think we need to be cautious. I get concerned about doing too much at one time about you know biting off more than we can chew.
▶ 3:40:29Uh to date though we have seen uh trillions of dollars in new private investment um since the president has taken office. Domestic and foreign companies are expanding or opening new facilities here in the United States. And as you mentioned in your testimony, there's over 50 countries that are coming to the table because they want to make deals. Um, I I just want to bring up some of the concerns I've heard from manufacturers, importers, uh, from New York that I've spoken to.
▶ 3:40:55And, you know, they want to make sure that you're considering the impact that tariffs could have on materials, on parts, on supplies that are needed to manufacture here in the United States because obviously the goal is to bring those jobs home to reshore as much as possible. But if there's tariffs on plastics, lumber, you know, metals, it obviously makes it very difficult to manufacture here at home.
▶ 3:41:14And also some of the importers that I've been speaking with have invested a lot of money uh to get to divest out of China and move into other friendlier nations. Cambodia for example, Vietnam. And they're concerned that the across the board tariffs in Asia are impacting, you know, their supply chain and ultimately their businesses. And then they're hopeful that deals will come forward very quickly.
▶ 3:41:39but they've made it also very clear that they can't wait 90 days for a deal to be made um and that it would literally close their business. And so I just want to hear from you on on where you think you're making inroads there on making deals uh with some of these countries to avoid that type of scenario. And if you could just answer those two uh comment on those two points first. Certainly I'm happy to do that.
▶ 3:42:03Um and and again just to reiterate um you know we've had these you know this enormous trade deficit that developed under President Biden. These things are supposed to be self-correcting under normal economic theory when they're not. It shows that there's something structural at risk here. So that's what's that's what's being addressed. You know we we now have so many countries saying we're not going to retaliate against you. We're going to work with you. We're going to try to figure out a way forward that the president um is is looking forward to trying to find a way forward to to make deals with these folks.
▶ 3:42:32Um, you know, China is on its own path. It's chosen retaliation for many years. It's chosen uncertainty. Uh, and you know, I won't comment much further on the USChina relationship, but I think what you're talking about, Congresswoman, with respect to these other countries, I think we could count on having uh some deals with them within the next few weeks or months. Yeah. I hope I hope it's more the few weeks because I think again, too many months may hurt the the ability for these companies to to survive there.
▶ 3:43:00at least if you're able to do some business in Vietnam or Cambodia, you don't have to rely on, you know, communist China, which we are already starting to move out. But I feel like that's that's a real issue because even if we want to bring the supply chain home, this brings me to my second point about pharmaceuticals. We've all said it here today. Four years that Joe Biden was there, he did nothing to reduce our dependency on on communist China for our medical supply.
▶ 3:43:22In fact, from 2020 uh to to last year, we saw 213 billion dollars worth of medicine imported from China. That's a two and a half time inc increase than the decade before. And so we are relying more today postco on communist China for our pharmaceuticals and that is a very dangerous thing.
▶ 3:43:44But my question is, with your goal of trying to bring facilities back home, I mean, it does take about seven years to get one of these manufacturing plants up and running, uh, how do you close the gap if the president's going to do uh, tariffs on pharmaceuticals, which I I I would really caution against that, but if that is the goal to try to get them to come back home, but we know it takes about seven years for those plants to get up and running, how are we going to close that gap so we're not, you know, hurting ourselves in the process, but we are doing what we need to do which is bring
▶ 3:44:14that supply chain home. Well, I I think I think there's a role for Congress in bringing home the supply chains. The president can act with the authorities he's been given and and we found that a tariff isn't in the first term, we found a tariff is a way to become less dependent on China, for example. We know it works. It's just math. The data is there. That's how it is. You know, to the extent that Congress is interested in helping reshore and creating, you know, tax structures that incentivize manufacturing, I think that's just really important. I think we have to have that.
▶ 3:44:41Well, and I'm glad you mentioned that because I actually have legislation to do just that, to incentivize uh our our sensitive supply chain, particularly pharmaceuticals back here, and also to utilize Puerto Rico, which has had historically the infrastructure to do it. I agree with my friend Dr. Murphy, who pointed that out earlier, and I have two pieces of legislation that I hope the committee will will take up or perhaps we'll put a piece in the tax package, but I do look forward to working with you. I think it does take more than that. We also have to reduce some of the regulatory framework and some of the permitting process that takes too long.
▶ 3:45:11Uh but we can get there, but we we need to make sure we don't hurt ourselves in the interim. Appreciate your time. Thank Mr. Kerry. U Mr. Ambassador, pleasure to be with you today. Thank you for your testimony. Um I also want to compliment you. I think anybody that has had a successful career on the on the private sector who's willing to come back into the public sector says a lot about the character of the person. So I appreciate your service to the country, sir.
▶ 3:45:39Um I was pleased to see the administration's decision to exclude oil and natural gas from these new reciprocal tariffs on countries with unfair trade practices. As we all know, one of the administration's top priorities is increasing US oil and gas production, which is a shared goal of mine. Um, as many of you know, Ohio is one of the largest coal producing states east of the uh Mississippi River.
▶ 3:46:08But in order to accomplish this, the energy industry will need access to key materials and inputs to bring these projects online and help keep the US as the top supplier of energy resources. Many of these products, including specialized steel, are not in currently produced in the United States. And it's just a matter of fact.
▶ 3:46:31These products are designed to handle unique operating environments like higher pressures and temperatures needed for energy production. Many of these specialized products there really is no domestic option. I mean it's just there there isn't.
▶ 3:46:46So can you share how USR is considering treatment for these types of key endofuse materials like specialty steel in regard to the tariffs especially considering that many of these products cannot be sourced in the US and are essential to help deliver the administration's energy agenda. So Congressman, the specialty steel you're talking about is not covered by the reciprocal tariff.
▶ 3:47:14uh the commerce department using section 232 action. They oversee uh any tariffs on steel and aluminum. And so I I'm not trying to pass a buck, but they're much they're much better placed to talk about uh how that's being implemented. I just want to identify this is something that is very concerning to a lot of a lot of people. So we'll follow up with your team and we'll follow up the right people. The other thing I I do want to Bless you. Bless you. Sorry. Bless you. I yield back the balance of my time. No.
▶ 3:47:43Um, Ambassador, uh, I also want to echo, uh, Congressman Fenstra's comments about the Chinese flagged, um, uh, vessels that are going into certain ports that the ports, that's a very, uh, very big issue for a lot of commodities. I don't care whether it's corn or coal or soybeans, whatever it is. So, I appreciated your remarks on that, but it's something that we will definitely follow up with you on.
▶ 3:48:08Um, one of the things President Trump unleashed the American LG industry by ending the former administration's era permitting pause. And as you know, the US LG industry is already being targeted by nations that are subject to the president's new tariffs. So my question to you is, do you have any plans to priorit prioritize America's newly restored LG export capacity in conversations with uh foreign nations? That's something that comes up regularly.
▶ 3:48:38Obviously, we've been talking about the trade deficit and many countries have been quick to say, you know, one area where the US is very competitive is uh oil and LNG and it's something that they want to buy and so it's it's been very common in these conversations for them to suggest that that is one way to help achieve, you know, more trade balance, etc. I appreciate your answer. And lastly, I'd like to briefly touch on the USMCA uh sunset review if you don't mind.
▶ 3:49:04Um, USMCA qualifying trade was excluded from the tariffs announced on April 2nd. This will help many of the US manufacturers. The reason I wasn't in the room most of the days they were in my office that have made investments under the rules President Trump negotiated 5 years ago. USMCA is facing a sunset review process that needs to be completed um by the end of July of 2026.
▶ 3:49:28Will the tariff exclusion continue during the to the leadup of that review to give the manufacturers more certainty in the upcoming months? Well, that's the current status. All right. I don't want to get ahead of the president on how he wants to treat that. But that's certainly the current status. And I would expect that if Canada can Mexico continue on this path, that would continue to be the status. And again, I I want to compliment you for your service to the country and being willing to go back into the public sector. A lot of people don't realize you you're giving up on a lot.
▶ 3:49:56you're spending a lot more time, probably a lot more hours, a lot more time away from your family. And so I just want you to know as a member of this committee, I certainly appreciate your service. So with that, Mr. Chairman, I yield back. Mr. Horseford. Thank you, Chairman Smith. And to the ranking member, uh Mr. Trade uh representative, are you aware that the tariffs have been paused? I am. Yes. When when were you made aware of that? Well, I understood the decision was made a few minutes ago.
▶ 3:50:25sitting here and under discussion sitting here under discussion so did you know that the that this was under discussion and why did you not include that as part of your opening remarks so typically what I don't do is dulge the contents of my discussions with what are the details of the pause well my understanding is that uh because so many countries have decided not to retaliate we're going to have about 90 days no excuse me you you we are the China increased their tariffs on the United States.
▶ 3:50:56Trump blinked. What's the blink, sir? What do you know about this pause? What are the details of it? Well, the details, as I understand it, is that China continues to retaliate. Other countries didn't retaliate. The president two or three days ago said we wanted to negotiate with those countries that asked for that asked for meetings. That's what we're doing. What are the details? How long is the pause? How many days? How many weeks? I I understand it's 90 days. I haven't spoken to the president since I've been here.
▶ 3:51:25So, the trade representative hasn't spoken to the president of the United States about a global reordering of trade? Yes, I have. I just been in the hearing with you, sir. But yet, he announced it on a tweet. WTF? Who's in charge? The president of the United States is in charge. And what do you know about those details?
▶ 3:51:47Well, as I mentioned, it looks like your boss just pulled the rug out from under you and paused the tariffs, the taxes on the American people. There's no strategy. You just found out 3 seconds ago sitting here. We saw you. We've been discussing it. If you came here knowing that you were going to be turned off, that these tariffs were going to be turned off. Why didn't you include that in your opening statement? Why didn't you reference that as part of your testimony?
▶ 3:52:16Well, I don't disclose my conversations with the president. Sir, these were specific questions we asked you all along. What's the strategy? These are real consequences for the American people and small businesses. I had a group of small businesses in my office earlier today talking about the impacts of these tariffs on aluminum and steel. This is amateur hour and it needs to stop. What does this even mean for your negotiating strategy?
▶ 3:52:45How are you in charge of negotiation if the president is tweeting about this from wherever the hell he is? The president was elected and he runs the trade policy and I advise him and execute his trade. Who executes the trade policy? I execute the trade polic. Did you know that this was happening?
▶ 3:53:03We have been discussing all kinds of and there's another member of the cabinet Bessant who just canled coming to the hill to ao avoid talking about the the market because it's in turmoil this in just days because there was no strategy. There was no plan. The president chose to take actions that he didn't even have the authority to take. He's put our economy in disarray and near collapse.
▶ 3:53:34We have small businesses and Americans who are concerned about their well-being, people's retirement, 529 accounts went down because of this administration. We have people that are planning to send their kids to college this fall. retire people who are retirement retiring whose benefits have declined. Is this market manipulation?
▶ 3:54:05No. Why not? If it was a plan, if it was always the plan, how is this not market manip It's not market manipulation, sir. Well, then what is it? Cuz it sure is not a strategy. We're trying to reset the global trade system that has offshore all of our factors. What has that done? How have you done how have you achieved any of that? But to enact enormous harm on the American people, which was our concern from the very beginning.
▶ 3:54:35Tariffs are a tool. It can be used in the appropriate way to protect US jobs and small businesses. But that's not what does. So if if it's not market manipulation, what is it? Who's benefiting? What billionaire just got richer? And all the while, there are not even any Republicans left in this this hearing. They all left because they don't even want to defend this.
▶ 3:55:03But meanwhile, the speaker is rushing to the floor to pass a budget reconciliation to screw America by passing the biggest tax cut in history on the backs of the WTF? Who's in charge? because it sure doesn't look like it's the trade representative. You just got the rug pulled out from under you.
▶ 3:55:30I wish I could feel some empathy, but the empathy I have is for the people whose very well-being and livelihoods are being affected. This is not a game. This is real life. I yield back. Let the refle the the record reflect that there's more Republicans in this chamber than there are Democrats currently in this committee committee room.
▶ 3:56:00There's six of us. There's five of you. So, let's make sure we get the facts right. I appreciate the president did not blink on China as was said earlier and it needs to be correct in the record. In fact, he increased China by 125%. Would you would you yield, Mr. Chairman? Could you yield? Can we have a colloquy? No. We don't want to talk about the trade policy here in the trade committee that this is our jurisdiction. Your time is expired and I'm more than happy to talk.
▶ 3:56:27And I said no cuz you don't want to defend the policy or the strategy. Kick me out. What you going to do? Kick me out. Mr. Yakam, you're recognized. Thank you, Mr. Chairman. Ambassador Greer, it's good to see you today. As we discussed in the past, Indiana's second district has the type of production economy that he would like to make for the entire country.
▶ 3:56:49We 85% of the nation's RVs, 60% of artificial knees and hips, as well as boats, trailers, buses, auto parts, Humvees, you name it. We also have a ton of egg in my district. corn, soybeans, eggs, dairy, ducks, beef, pork, lumber, potatoes, and tomatoes. I could go on. Lumber alone, I was actually just meeting with a cabinet manufacturer here a few minutes ago.
▶ 3:57:18I couldn't even remember if I had been to that cabinet manufacturer site because we have so many of them in my district. I don't know how we do all that in one area, but somehow we do. All this to say, supply chains matter. both getting inputs in the door and outputs out to market. Small hang-ups can create expensive backups.
▶ 3:57:43A drip drip of price hikes can turn into a stream and that stream can turn into a river for something with thousands of components. I hope we can get some good quickly. It probably won't come as a surprise to you, Mr. Ambassador, when I tell you that when an RV or boat is exported, it tends to not go very far. In fact, 90% of RV exports are to Canada. However, Canadian retaliator retaliation tariffs against RVs began today and boats are on the bubble.
▶ 3:58:14Are you consulting with industries and companies being targeted by these retaliatory tariffs? So, Congressman, uh, in many cases, yes. I understand that the retaliatory tariffs by Canada are related to the steel and aluminum tariffs. Um and so that would be the commerce department. But we certainly we meet with all these folks, right? Whether it's covered by the commerce department or someone else. They want a meeting, we take it.
▶ 3:58:38Uh we listen and and we provide the feedback that's necessary, you know, and obviously we're talking to all these countries to get to a position where we have better terms of trade with them where we can ensure that we have domestic steel and aluminum manufacturing and the other uh critical sectors that are so important uh to our economy. Thank you, Mr. Ambassador. I also want to get your thoughts on a recent New York Times article titled, "The tsunami is coming." China's global exports are just getting started.
▶ 3:59:05It reports that Chinese state controlled banks lent an extra $1.9 trillion to industrial borrowers over the last four years. But all those factories aren't just turning out to gizmos and gadgets destined for their domestic consumption. China's promised shift to a consumption economy remains just that, a promise. Increased production paired with low consumption just means that China continues to double down on over capacity.
▶ 3:59:34And these numbers bear that out. Exports rose 13% in 2023 and 17% in 2024. It seems like there's a global recognition that the threat posed by China's overcapacity is real. The EU, Brazil, Indonesia, Thailand, and others have also imposed tariffs on China to counter the flood of cheap exports. It's not just us.
▶ 4:00:02Reports suggest that Canada and Mexico are open to coordinating with the United States on China's over capacity. Are you are you able to comment, Mr. ambassador on reports that Canada and Mexico are open to coordination on Chinese overcapacity and if they were to coordinate with us would that potentially create an off-ramp for Canada and Mexico on the US tariffs.
▶ 4:00:29So in the first instance, I appreciate you highlighting that and and over capacity in China, it infects the whole world, right? It it can displace products in third countries that come to us indirectly. And that's often why we do a global tariff action because the Chinese actions are not just bilateral. They they they cause a problem for the whole economy. And so we have to take global actions to make sure there aren't loopholes or Swiss cheese. With respect to Canada and Mexico, um you know, I won't get into details of our negotiations with them. I'll defer to their public statements.
▶ 4:00:59But you know, for my part, I would say we have encouraged, we being American policy makers, we have encouraged for years our close trading partners to take stronger action against China of the types of actions that we are taking. Right. What about other countries and allies? Do you think there's room for them to coordinate with us on some of these tariffs as relates to China? So, so I think there's room for that. You know, some of these economies are closer geopolitically and economically to China and it makes it a harder choice for them. U you know, Southeast Asia, that kind of thing.
▶ 4:01:26But but in my own view, it's in these count's own interest to frankly manage their trade with China so that they don't become victims of a second China shock. Great. Thank you, Mr. Ambassador, for being here today. I'd also like to thank you for your patience uh as that you've certainly shown uh with us today. And with that, Mr. Chairman, I yield back. Thank you, Mr. Miller. Thank you, Mr. Chairman. Uh Ambassador, it's good to see you in a different capacity. I remember last time we were together in the last administration.
▶ 4:01:56I was uh seeing you for a visit, but it's good to see you and welcome. Um, thank you, Mr. Chairman, and thank you, Ambassador Greer, for your time and testimony today. From day one, this administration made it clear through his America First economic agenda that the United States will no longer tolerate unfair trade practices or accept the chronic trade deficits that have hurt American workers and industries for far too long.
▶ 4:02:18The farmers and manufacturers I represent depend on strong enforcable trade agreements that ensure their crops and products can complete and thrive in global markets. They are not asking for special treatment, only a level playing field. As you noted in your testimony, under the Biden administration, we saw consecutive years of agricultural trade deficits. a deeply concerning trend that reflects a broader lack of urgency to fight for American farmers, empower our workers, and focus on advancing US economic interests abroad.
▶ 4:02:48Additionally, the the prior US trade representatives retreat from efforts to negotiate critical market access from the American leadership in digital trade has created a dangerous vacuum, one that China and other adversaries are incredibly eager to fill. Without a clear, assertive economic strategy, we risk losing ground, not just in agriculture or manufacturing, but also in innovation, technology, and long-term economic security.
▶ 4:03:15Now is the time to advance a bold progrowth trade policy that restores American leadership, defends our producers, and sets the terms of tomorrow's economy. Ambassador Greer, as you know, there are certain goods critical to supporting the United States manufacturers and consumers that are either not readily read readily available in sufficient capacity or cannot be produced at all domestically due to geographic and climate limitations.
▶ 4:03:41Coffee and cacao are clear examples where small-scale production exists in places like Puerto Rico and Hawaii. However, this production comes nowhere near meeting domestic demand within our country. Given their importance to both consumers and domestic food manufacturers, could you please speak to how the administration is working with industry stakeholders and international trading partners to maintain secure, reliable access to these essential imports?
▶ 4:04:05Uh certainly uh first of all, I I appreciate your your comments and and pointing out this because the you know the global economy is complex. uh among some of the countries that I have coming in to speak, I'm meeting, for example, with with Madagascar uh within the next day or two. And as has been mentioned here, you know, vanilla is is sourced from Madagascar, among other things. So, we're certainly engaging in conversations with those countries, including those who have some of those things that aren't necessarily cannot necessarily be be grown here. So, that's certainly part of it.
▶ 4:04:33Uh we're sensitive to those needs and and again, I've mentioned this before with respect to US, Canada, Mexico, where we have a lot of components and parts that may come across. uh that's currently not subject to a duty if they comply with the rules. Thank you very much, Ambassador. In your comments yesterday to my colleagues in the Senate, you mentioned that roughly 50 countries have reached out to in recent days to negotiate with this administration's following last week's trade action.
▶ 4:04:58I'm particularly interested in the engagement with countries of the Indo-Pacific and Africa where many American businesses compete with companies subsidized by the Chinese Communist Party. among the countries that have reached out. How's the administration considering these unique challenges while ensuring critical market access for advancing US economic and strategic interests? So, so for example, you mentioned Southeast Asia.
▶ 4:05:22Some of the things we've seen, uh, we've seen Cambodia and Vietnam, for example, come forward and say that they want to engage in reciprocal trade. You know, they've made certain proposals on lowering tariff levels. I think that, know, it can be challenging because they do have Chinese businesses operating there, too. So, I think if you're going to get to a situation where you're having to deal with some of these folks, you know, one, you want to make sure it's real market access they're giving you. Not not just tariff levels, but also the non-tariff barriers.
▶ 4:05:51And you also want to make sure you're not giving a benefit to Chinese companies operating in those countries, right? We don't want some deal with them only to have it become Chinese companies, you know, pushing product to the United States through uh Vietnam or Cambodia. That's something we're looking at in terms of rules of origin, etc. Well, thank you very much for your attention to detail on this matter. It's big in our district and so that's why I bring it up and thank you for your answer.
▶ 4:06:12And if I may, and you know, it's a little bit of a tough one, but on what timeline do you expect these negotiations to move and the outcome should what should we be watching for the trade commitments from our partners uh across the globe? Certainly. Well, before the action even went into place, uh trading partners knew action was was coming, right? They they heard the president as everyone had and so they they came in advance to to talk about uh you know possibilities where they could have more reciprocal trade with us. Um this afternoon I have additional meetings.
▶ 4:06:40You know I'm working with other members of the cabinet to make sure we can u you know work with these folks understand where they're coming down what their offers might be and this is this is job one uh for the next for the next few weeks and months. Well, Ambassador, I just want to thank you very much for your hard work, your dedication to this country, and the service that you're doing as ambassador. And uh just checking here, seeing as some of the uh tariffs that the president is doing uh have already adjusted a bit. The market's up 2,300.
▶ 4:07:06So, I know uh it's in the beginning of the administration, but I feel very confident about your direction and leadership moving through with these negotiations. Thank you very much. Thank you, chairman. I yield back. Thank you, Miss Plask. Thank you very much, Mr. Chairman and Ranking Member, Ambassador, good afternoon.
▶ 4:07:24Um, I had quite a number of questions about tariffs, but um, since that's on pause, I'm going to pause on those questions and deal with one that is more specific to my district and one that I'm concerned with, and that's regarding a proposed rule that you have um, that has been put out and I know that there have been testimony about it.
▶ 4:07:45uh in the US Virgin Islands and throughout the Caribbean as well as some of the other the other territories in Hawaii, we import virtually everything needed for daily life from food products, um poultry, groceries, vehicles, etc. 97% of the food that's consumed in my district comes from imported goods.
▶ 4:08:07I'm deeply concerned about the impact of trade actions particularly because it seems very apparent that I don't know if the American territories have been thoroughly thought through and the impact this will have on us um in some of these tariffs as well as some of the proposed w rules proposed action taken under the office of the US trade representative section 301 authority um right now does not provide a balanced solution particularly when it comes to American
▶ 4:08:37businesses and jobs in the ship building capacity. We know that you've proposed a rule to provide uh to impose fees on those ships which are not made um that are Chinese-made, that are not Americanmade. However, a large portion of ships which are much smaller than those that are made in American ports. The American ports are predominantly making those for the military purposes.
▶ 4:09:02It's cost- effective for them to do it for the military, but not for those kinds of cargo shipping that's done in the Caribbean region. Um, it doesn't provide a balance for us. And we are concerned not only in the Virgin Islands, but Puerto Rico as well as the other Caribbean islands that this imposition of a million dollars per port that uh is being proposed will bear incredible impact on us.
▶ 4:09:29uh US shipping industry serving the Caribbean cannot absorb additional costs of the proposed port fees which would have a significant economic consequence to us. I have um my the medium income family income in the Virgin Islands is $30,000 a year. The cost of a million dollars per port is going to be passed on to the consumers in my district, to the business owners.
▶ 4:09:55We are about to start a rebuilding of 20 schools, two hospitals, a complete micro grid, complete utility rebuilding both in the Virgin Islands and Puerto Rico. All of the laying and supplies that are coming into us are coming from these type of vessels. If they are then going to be imposed this fee, we will ne negotiations that have already been done with FEMA for the cost of rebuilding are going to skyrocket and we need some support for that.
▶ 4:10:26The the thought is sir is many of these uh ship builders are in Americanowned. They're American um shipping vessels uh that are Americanowned. They are just If there has there been discussion about having some exemption for Americanowned American um vessels that are coming out of Florida going into the Caribbean. I have a chart up here.
▶ 4:10:5492 billion has come from the Caribbean into are imported from the United States. The Caribbean region, which only has 80 million people, is the fourth greatest trade partner with the United States. Um, have you thought about exemptions for those individuals who are in there? Thank you, uh, for your for your thoughtful comments and feedback.
▶ 4:11:22Uh we've also heard from other territories that have expressed similar concerns and so we've had a process going on with hearings and and collecting comments and this is certainly something that we take on board. Um, you know, I think it's very important, you know, we have two things we're trying to thread here, right?
▶ 4:11:38Once, you know, one is the Chinese make all the ships mostly besides Japanese and Koreans and we don't make any ships and so we need to change the incentives there, but then we have the issue you're talking about is, you know, we're not going to make 25 ships on April 18th, the day after we put in any kind of measure. Um, so I certainly think that there has to be accommodation made for circumstances because we're not going to have all the ships in on April 18th. So, so this is helpful to me. Um, no decision has been finalized. I would I would also put this out.
▶ 4:12:08The other concern is one that has been mentioned by my colleagues as well is national security. We cannot have Caribbean nations moving closer to China who is already on the shores of these Caribbean nations to try and do increased trade with them. If we are having a trade war with China, if we want to ensure that America is first, America needs to be first in its third border, which is the Caribbean. That was said by President George W. Bush.
▶ 4:12:38That is the third border. That is the what we need to secure. And we're not going to do it if we are pushing American shipping companies outside of the Caribbean. And they have to go to China to do that. So, I want to thank you for your consideration of this. Thank you, Thank you very much, Mr. Chairman. A very, very good afternoon to you. And good afternoon, Ways and Means Committee, and a special welcome to our special guest, Ambassador Greer. Thank you so much.
▶ 4:13:04As I look at the clock, you have sat in the hot seat for uh for 4 hours. And the hot seat is gotten hot. I know it's gotten hot. It's gotten hot because you and this president, President Trump, have chosen to not ignore a problem. anymore. Uh it would be so easy just to ignore it. It would be so easy to ignore our collapsing manufacturing base.
▶ 4:13:31Uh it would be so easy to just ignore that we're subsidizing the rest of the globe right now. But it's not how you roll. It's not how this president uh rolls. We're determined to make things better. The problem is, as you know this already, since 1994, we've lost 5 million 5 million manufacturing jobs. 90,000 90 thou I'm looking at a camera somewhere. I want the American people to know what's at stake. 90,000 manufacturing plants have have closed.
▶ 4:14:01You have said enough. You have said enough. This president, President Trump said, "I'm going to fix it. I'm going to leave it better than I found it." And for our kids and grandkids, no more. Uh, Ambassador Greer, can you tell us tell the American people what's going to happen if you just ignored it? If we just ignored it, u how long is it unsustainable? Uh if we just ignored the problem, what happens to our economy? Now, thank you for your comments. I agree completely with you.
▶ 4:14:28Um the situation is for the past 30 years or so, we have had a trade policy dictated by Wall Street. And that's what I have people screaming at me today, the Wall Street talking points, repeating everything. They're talking tell me about Goldman Sachs thinks they're telling me all these different kinds of things. We're not talking about the next quarterly earnings for the investors on Wall Street, right? When the Wall Street Journal says, "Oh, well, this is going to be bad for Wall Street." I'm kind of focused on Main Street. I'm focused on getting these jobs back. We're sensitive to volatility in the market. We're sensitive to this.
▶ 4:14:57The problem is there's not a silver bullet where we can magically uh, you know, have everything, you know, bright and shiny again immediately. But we have to take strong measures. I I would love to have Congress also take strong measures to help with reshoring and and to support during this transition where we adjust from an economy that's fueled by government spending and over financialization to one where we're making real goods and services.
▶ 4:15:20Because if we don't do it, Congressman, if we don't do it, then we won't then we will be dependent completely on others, including our foreign adversaries, for the things we need the most. Amen. Like like drugs and manufacturing, 50% of which comes from our adversary, China, which is a which is a shame. Uh it's working. It is working. And I want you I want the American people to know uh there are dozens of companies that said, "Hey, we're going to uh come back.
▶ 4:15:43We're going to invest in America." Apple, OpenAI, Oracle, Soft Bank, Johnson and Johnson, thousands of jobs uh billions and billions of uh of money. So, it is working. And I do know as a as a tweet right now, we've got over 70 countries that said, "America, we want to work with you. We're going to eliminate uh tariffs." So, it is working. And uh my phone just went off that the president just recently said we're going to call timeout on a 60-day pause on every nation uh except China.
▶ 4:16:13That's breaking news, Mr. Ambassador. So uh which is which is really good. I I want us to be sensitive though and I've heard from manufacturings too in my area alone growing wood that said, "Amen. Finally, we can't have Brazil and Canada dumping wood." Uh the seafood industry which is big in Florida also. China shrimp comes from China enough. What about companies that uh that ordered ordered product before the tariffs before liberation day?
▶ 4:16:41Are we going to recognize the the custom and border protection have put arbitrary dates? Uh I just want to get that on the record and hopefully you and uh your team will recognize that. Is that something that's on your radar screen of when they've ordered it before? Are they still going to be able to uh to comply with some deadlines? So So I know normally what happens when you take a tariff action, if there are goods on the water on route, that's something where it's it's not going to be subject to a tariff.
▶ 4:17:08I I think we have a little bit of a pause right now as we're negotiating with countries and we we can take a look at that custo and then coordinating with customs. Your team is giving me the thumbs up that I just want to put that on the record. How are we going to compete when uh countries like China that are subsidized in foreign governments? How are we going to make sure the American worker can can compete against them? Is that on your radar screen? Yeah. No, it definitely is.
▶ 4:17:33I mean, as we're looking at these other countries, I mentioned this a little earlier, maybe it was to Congressman Miller, you know, if we're getting to a situation where we actually have a deal for better reciprocal trade with other countries. I want to make sure that it's a benefit to us and that country. I don't want a third country like China benefiting from it. Amen. Mr. Ambassador on behalf of uh people in Florida, Northeast Florida, thank you for standing up for the American worker. Finally, Mr. Chairman, I yield back. Thank you, Mr. Swisy.
▶ 4:18:04Uh thank you, uh Mr. Chairman, Ambassador, thanks for being here today. Thanks for your service. I saw that you were a missionary and you were a veteran and you had a big job at a law firm and now you're here serving the government. You helped negotiate the USMCA. Did you think the US MCA was a good good deal for America? No. Uh, I think it was there was a lot more we could have done and should have done. So why did the president come out after th this year and say it was one of the worst deals we ever negotiated in the history of the country. I think it's frustrating that here we are 5 years later and steel imports from Mexico shot up.
▶ 4:18:34Car imports from Mexico shot. You think it was a good deal, but he thinks it was a terrible deal. I mean, I feel like you're in a very bad position here. This whole idea that this president made this switcheroo on you while you're in the middle of testifying here today. I feel I actually feel bad for you. No, I I but I really feel bad for the American people that are seeing these things happen. There's no plan. I mean, that's my big concern. I know there's goals. I want to see manufacturing brought back to America, or at least I want to see jobs that pay more money so we can rebuild our middle class in America.
▶ 4:19:04I'm I'm for that. I'm for holding China accountable and holding our adversaries accountable. I'm for tariffs in in select specific places, but right now there's no All we know is prices are going up. We're pissing off our allies and the stock market went down dramatically. It's gone up dramatically today. The market manipulation questioned by Mr. Horzford is a very real concern that we're going to have to dig into a little bit.
▶ 4:19:30Who's benefiting from these wild fluctuations down, wild fluctuation up? We're still way down. We need a plan to accomplish the objectives that I know that you genuinely believe in, which is to try and recreate the middle class here in the United States of America. that on my side of the aisle, we all believe in that. We have to recreate the middle class in America. Do you think we should increase the minimum wage in America? I think we need to create jobs that naturally have high wages. This the minimum wage in 20 states is 725 an hour. Do you think we should increase the minimum wage?
▶ 4:20:00I mean, I think the states should be managing that kind of thing. I think we need better manufacturing jobs that 30, 40, $50. 20 states rely on the federal minimum wage is still 725 an hour. So, you don't think we should increase it at the federal level? Well, you'll have to talk to the Secretary of Labor on that. That's Do you think we should have the PRO act to promote unions in America because that will help to recreate the middle class. And I'd refer you to Secretary Chavez Damer. She's much better placed.
▶ 4:20:22Do you like the chips act that to reshore the the manufacturing of semiconductors here in the United States of America, a national industrial policy where we invest in creating factories with high-skilled, highwage jobs in America. Do you support the chips act? So, so notionally I agree that we should have industrial policy to help with chips and other things, right? you know, whether the CHIPS act was the perfect way to do it, I I don't know. But so my big concern is that, you know, we'd want to do these things.
▶ 4:20:49You and I share the same goals, but there's no plan right now. As we saw, there's been devastation from this unilateral action by the president where he treats our allies and our strategic adversaries the same with the exception of China. We we know that China's and I'm all for that. I actually have a bill that I sponsored to get rid of most favorite trade nation for for China. So, but why are we treating our allies?
▶ 4:21:15Why are we treating Japan and Korea and Australia who have been our bull works against China in the Indo-Pacific and Vietnam even though they're they're they don't share our philosophy, they're sick of China as well. And we were building a relationship with them to help us be a bull work against China. Why are we treating our allies in the Indo-acific who are our main allies against China the same as we're treating our adversaries?
▶ 4:21:44We aren't treating them the same. They have substantially lower tariffs than China. I know, but we just really kind of bombarded them. I mean, it's the same as USMCA. We negotiated a bipartisan trade agreement that everybody agreed upon that the president praised as being the best deal ever. And now he pulls the rug like he pulled the rugs out from under you today. He pulled the rug out from under Canada and Mexico. I mean, it it it doesn't seem like there's any there's no plan.
▶ 4:22:13Do you do you think that there's a a plan? And can you share the plan with us? Certainly. Listen, I'm very confident in the president's policy. Goods goods that meet USMCA rules come in duty-free. Um, so when the president comes out and he says we're going to have a tariff to make sure we're we're treated the same, that we can get rid of these deficits. We have a baseline 10% to make sure that we don't have Swiss cheese in this in this program and then we have higher tariffs uh on those who are the worst offenders. That's why you end up the president put in place.
▶ 4:22:40Yeah, the president put in place place these high tariffs but today he just what yanked them out. Is that part of the plan? Was that always part of the plan? Well, they're they're they're paused. The the reality is a lot of these compan countries have come to us and they said we understand American leadership. We understand what you're trying to do. we want to have reciprocal trade with you. China has taken a different choice and so they're on a different path. Our Western Hemisphere countries, they all have the lowest rate. They have a 10% rate, right? The UK, Australia, they have a 10% rate. These are all the lowest.
▶ 4:23:10The the big issues are in Asia where we saw the offshoring and China is in a category all by itself. Okay. Thank you, Ambassador. Appreciate your time today. I'm very concerned there's no plan and this is being done kind of willy-nilly at the last minute by the president out of the out of his head. Uh it doesn't really make sense to us. It would be great if we knew what the plan was and it was shared to us by the administration and even if it was done in a way for our committee uh that we could at least know what's happening.
▶ 4:23:36Uh we have a lot of the same goals, but right now prices are going up, our allies are very upset and the stock market is on fire. Thank you. Thank you, Mr. Chairman. Thank you, Mr. Gomez is recognized to enter and document the record. Yeah, Mr. Chairman, I wanted to enter a tweet by Howard Lutnik basically where he states s uh Scott Besson and him sat with President um when they drafted the post, the truth social post that paused the tariffs for 90 days.
▶ 4:24:07Um this is just to emphasize that we don't really know who's running things over there. So ordered. Thank you, Mr. Moran. Thank you, Mr. Chairman. Uh Ambassador Greer, thank you for your time today. uh sincerely appreciate you coming down to answer questions during this week. I know your time is busy. I want you to know that I support uh President Trump's effort to achieve trade reciprocity and equal treatment for the United States on the world economic stage with those countries that are strategically aligned with the US.
▶ 4:24:36As a short-term negotiation strategy, I am hopeful that the current tactics of the administration will restore trade disparities and imbalances around the world to induce our friends and allies around the world to reduce or eliminate their tariffs on the US and eliminate anti-American non-tariff trade barriers like quotas, subsidies, sanctions, unreasonable regulatory restrictions that are there on against and on American products. not to mention currency manipulation and intellectual property theft issues.
▶ 4:25:07If President Trump is able to achieve this worthy reset, it will have a material long-term benefit for the American economy and the American worker. I'm confident about that. Um I'm confident that his strong leadership can achieve these results using this tool. But I do think it's also important for you to hear from me that I urge caution and express my hesitation on the use of tariffs as a long-term economic strategy rather than a short-term negotiation strategy.
▶ 4:25:34In my opinion, freer trade practices traditionally uh have helped spur economic growth, technology innovation, and cooperation of economies. Free trade also helps to keep consumer prices lower in my opinion. I want to come back to and uh visit this idea of China because I think China really is the big problem here.
▶ 4:25:55Uh when when we're looking out on the world stage, I was glad to see that we we even went up today from 104 to 125% on the tariffs according to the the tweet that was put out just a little bit ago. And China, I think, needs to be our our focus on where we uh where we put our efforts in the next uh few uh few months. The dimminimous rule uh is $800 or was before the recent executive order.
▶ 4:26:19I want the American people to understand, I would love for you to explain how the China friendly dimminimous rule was helping China companies undercut American companies before the president's April 2nd executive order went into place. Certainly. Uh so just to to lay it out, the dimminimous exemption uh is it's a provision of law that allows goods to come in if they're valued under $800, they can come in duty-free.
▶ 4:26:44Um and we have a lot of Chinese companies that have leveraged this to avoid tariffs, right? We have high tariffs on China for very good reasons. And they have used this this law to bring in these goods. Um we have also heard that this has been used because there's little scrutiny of these packages. They can be used to include u you know illicit substances, counterfeit products, uh things that harm you know US people but also US companies. And so it's been a loophole.
▶ 4:27:13Uh and so that's one of the reasons why I know there's been bipartisan movement in Congress to deal with it, why the president was comfortable uh moving forward with that as well. Yeah. Uh and I and I think the American people uh don't realize what a big loophole that has been over the past four years and how devastating that has been uh to a number of American businesses to have China unfairly compete under that dimminimous rule. So I applaud the president including that in his executive order and I hope we eliminate that uh alto together moving forward.
▶ 4:27:40I also want to talk to you about uh the fact that China's involved in worldwide illegal and unregulated fishing around the world. Is the is the president's team is the administration uh looking at helping to stop the illegal and unregulated fishing that's occurring across the globe by China? Yes, that's you know I have an office uh at at USR that deals with environmental type issues and they're very focused on this particular issue of fishing. It's something we're looking at.
▶ 4:28:08We're working you know there are folks in the Senate too are very concerned about this. You know, we currently have now tariffs on China, so that at least creates a deterrent from having uh that in our market, but it's a broader issue that we should deal with. Yeah. It not only hurts American fishing, but it actually undercuts particularly the global south from being able to have a revival of their economies in their fishing waters, which uh makes them more u dependent on China as they as China comes in and invades effectively the global south.
▶ 4:28:38As you know, uh, the US, moving on to a different topic, the US has now imposed as of today 125% import tariff on China. Uh, China hasn't indicated that they're really willing to come to the table yet. I was glad to see that all these other countries have come to the table. I think that's because of the strength the president's leadership is showing across the world stage, that he means business, that we're going to have a reset where American businesses are not taken advantage of.
▶ 4:29:04But what is the administration planning to do to make China come to the table and actually engage in free uh freer trade or fairer trade and cut out these unfair trade practices? Well, China doesn't believe in in in in free trade or fair trade for that matter. You know, we had an agreement with them under Trump won and they started to comply with some of that.
▶ 4:29:24from the B administration there was no enforcement and to some degree they've chosen their own path and when they're ready and when they want to talk about how to you know have a better approach obviously we always have an open door ambassador again I I applaud the president's efforts particularly as it regards China to push hard on China already and to make them understand that we are not going to lay over and let them run this world that the United States is going to reset the economic stage thank you and uh yield back thank you uh thank you Ambassador Gre for
▶ 4:29:54appearing before us today. Please be advised that members have two weeks to submit written questions to be answered later in writing. Those questions and your answers will be part of the formal hearing record. With that, the committee stands adjourned. Thanks. Thank you.