USTR Defends Trump Administration’s Tariff Strategy Amid Congressional Concerns
U.S. Trade Representative Jamieson Greer vigorously defended the Trump administration’s expansive tariff policies before the Senate Finance Committee on April 8, despite bipartisan concerns about their economic impact. The hearing on the President’s 2025 Trade Policy Agenda came just hours before new elevated tariff rates were set to take effect.
Underlying Rationale
Greer emphasized that the administration’s reciprocal tariffs are “aimed squarely at achieving reciprocity and reducing our massive trade deficit to restore domestic manufacturing.” He cited the loss of 5 million manufacturing jobs and 90,000 factories since 1994 as evidence of an economic and national security emergency requiring immediate action.
“The trade deficit, driven by nonreciprocal trade, is a manifestation of the nation’s loss of its ability to make, to grow, to build,” Greer stated.
Negotiation Strategy
Throughout the hearing, Greer confirmed the tariffs would take effect as scheduled, but described them as a catalyst for negotiations. He reported that approximately 50 countries have already approached USTR to explore how to achieve reciprocity, though he was careful not to provide specific timelines for resolutions.
“We will have the tariffs in place. If other countries can come to agreement on reciprocal trade, that’s something the President will consider,” Greer explained, adding that most countries have chosen not to retaliate and instead come to the negotiating table.
Bipartisan Concerns
Democrats primarily focused on potential inflation and price increases for American consumers. Several, including Ranking Member Ron Wyden (D-OR), mentioned legislation to reassert Congress’s authority over trade policy. Wyden announced he would propose “a new bipartisan privileged resolution to end the latest crop of global tariffs.”
Republican members generally seemed willing to give the administration some leeway, particularly if negotiations resulted in market access commitments. However, Senators Ron Johnson (R-WI) and Thom Tillis (R-NC) voiced notable concerns about the lack of exclusions and questioned the overall approach.
Economic Impact Disputes
When pressed about potential price increases, Greer argued that inflation went down during Trump’s first term despite significant tariffs on Chinese goods. He disputed predictions of catastrophic economic consequences, saying, “the same economists crying out now are the same ones that said we’d crash the economy in the first term.”
In response to concerns about small businesses dependent on imports, Greer acknowledged adjustment challenges but maintained that “the best way to add certainty is to build in the US.” When Senator Ben Lujan (D-NM) asked if Greer agreed with President Trump that “people will have to feel a little pain,” Greer responded affirmatively.
No Exclusions Process
Greer repeatedly stated that President Trump has been clear there will not be exemptions or exclusions for the reciprocal tariffs, as that would “undermine the remedy.” He noted that certain sectors are already exempt from the reciprocal tariffs as they may be subject to future Section 232 actions, including copper, lumber/timber, semiconductors, and critical minerals.
Country-Specific Negotiations
Regarding specific countries, Greer indicated that President Trump has directed him and Treasury Secretary Bessent to lead negotiations with Japan, particularly focused on agricultural market access. He acknowledged that China has not shown willingness to engage constructively, while noting that Vietnam “has already come to the table with an offer.”
Greer suggested that the tariff structure, which generally imposes lower rates on Western Hemisphere countries compared to Asian nations, was intentionally designed to encourage nearshoring of production.
When asked about the possibility of new free trade agreements, Greer responded that the administration is “first and foremost focused on addressing this emergency” but added that any future arrangements would need strong rules about third countries and changes to rules of origin requirements.
Despite the lengthy questioning and significant concerns expressed by members of both parties, Greer remained resolute in defending the administration’s approach, insisting that “the status quo just won’t work anymore.”