WASHINGTON—As the United States and the world await the implementation of new tariffs from the Trump administration, U.S. Trade Representative Jamieson Greer fielded questions from concerned lawmakers in both parties.
The exchanges came during Greer’s testimony before the Senate’s finance committee on April 8. He will testify again before the House Ways and Means Committee on April 9.
Greer confirmed a round of reciprocal tariffs on numerous countries was slated for April 9. It follows a 10 percent baseline tariff enacted on April 7.
In his opening testimony and exchanges with lawmakers, Greer said the tariffs and the emergency declaration are necessary because a lack of reciprocity with trading partners demanded immediate action.
While tariffs would draw in revenue, he said the measures were primarily intended to address the United States’ persistent trade deficits.
Pressed about the tariffs’ purpose by Sen. Chuck Grassley (R-Iowa), who spearheaded bipartisan legislation intended to rein in the president’s tariff authority, Greer said the United States is “certainly seeking reciprocity” but will garner revenue too, with the results varying across countries.
He told senators that about 50 countries had approached him personally regarding the tariffs.
While Chair Mike Crapo (R-Idaho) mostly sounded supportive of the administration’s efforts, Republicans and Democrats alike voiced worries about the measures.
Sen. Ron Johnson (R-Wisc.) and Sen. Sheldon Whitehouse (D-R.I.), ideologically at odds on many issues, both said they were worried that businesses could go bankrupt as a result of the measures.
Johnson urged the administration to “focus on the products we actually need” when erecting barriers to trade.
“Tariffs are a double-edged sword,” he said.
Greer told Johnson that “we need to be in a situation where we have production here,” saying the relevant timescale was 100 years rather than the succeeding financial quarter.
Sen. Mark Warner, the vice chair of the Senate Select Committee on Intelligence, said he was “baffled” by trade restrictions on countries that are friendly to the United States.
He mentioned Taiwan, which is expected to face a 32 percent tariff, and Australia, which has no exemption from the administration’s 10 percent universal tariff.
“You put a huge hit on Taiwan, where we need collaboration with the TSMC,” Warner said in reference to the Taiwan Semiconductor Manufacturing Company.
The chipmaker’s growing footprint in the United States includes a $100 billion investment, one announced under the new administration.
Greer noted that Australia’s tariff was the bare minimum under Trump policies, adding that some agricultural products are effectively inaccessible in the closely allied country.
Sen. Ron Wyden (D-Ore.), the finance committee’s ranking member, asked Greer about China, which has responded to the United States with retaliatory tariffs, saying it was a key market for his part of the country.
Greer differentiated China from other countries that have come to the United States and signaled reciprocity in response to the tariff announcements, saying he did not expect such a move from the geopolitical rival any time soon.
He specifically cited Vietnam, saying that “they beat down our door” to negotiate.
Sen. Steve Daines (R-Mont.) had a similar question about American beef exports to China.
Greer told the senator that “China of course needs to take down their barriers.”
Daines said he was heartened by American negotiations with Japan and South Korea, both of which are frequent destinations for beef from the United States.
This “could be absolutely a monumental moment,” he said.
In response to a question from Sen. James Lankford (R-Okla.) about possible workarounds for companies in the United States reliant on certain goods from abroad, Greer said exemptions were off the table, at least in the near term, describing them as “Swiss cheese” for what is meant to be a unified policy.
Senators including Lankford are concerned about the tariff timeline, saying that the instability was worsening conditions for businesses.
Sen. Bill Cassidy (R-La.) asked Greer about possible trade coordination within the Western hemisphere.
Greer said such deals “need to be coupled with strong rules about third countries,” including China, to avoid arbitrage of cheaper goods from Asia through the United States’ neighborhood.
“The president wants to see factories back here,” he added.
