U.S. Trade Representative Faces Grilling From Senators on Tariffs

U.S. Trade Representative Jamieson Greer confirmed Tuesday that the Trump Administration’s planned across-the-board, “reciprocal” tariffs will go into effect as scheduled at midnight on Wednesday, April 9^th. In a hearing before the Senate Finance Committee he also categorically ruled out any exceptions or exemptions for specific industries, sectors, or countries.

“The president’s strategy is already bearing fruit,” Greer said in prepared remarks. “Companies have announced nearly $4 trillion in new investments in the United States.”

Greer’s testimony came as U.S. financial markets were recovering some of the ground lost over the previous three trading days as investor confidence was buoyed by claims that more than 50 countries have approached administration officials about beginning negotiations to reduce bilateral trade imbalances and lower tariffs. After he spoke, however, markets reversed course and began trending lower.

The trade ambassador faced skeptical, and often heated questioning from both sides of the aisle from senators relaying constituents’ concerns over the sharp drop in retirement savings due to the market’s plunge and the possibility of renewed inflation due to the tariffs. But Greer did little to assuage their concern.

“What I want to know is, whose throat do I choke if [the tariff policy] doesn’t work?” asked Sen. Thom Tillis (R-S.C.), normally a close ally of the administration. “I wish you well, but I’m skeptical.”

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Members also repeatedly expressed their displeasure with the lack of clarity from the White House as to the ultimate goal of the tariff policy.

“Are tariffs a negotiating tool or are they about raising revenue?” asked Sen. Tina Smith (D-Minn.), echoing many of her colleagues.

“They could be both,” Greer responded, echoing the president’s comments from the Oval Office on Monday.

The trade rep pointedly declined to commit the administration to negotiations to reduce the tariffs despite repeated probing by the committee.

Several senators also questioned Greer as to why the tariff policy was focused exclusively on the U.S. trade deficit in goods while ignoring the substantial surplus the U.S. runs with much of the world in services, particularly digital and financial services.

“I don’t see any strategy here at all,” said Sen. Ron Wyden (D-Ore.), the ranking member of the committee. “Services account for 80% of U.S. GDP, and eight in 10 Americans are employed in service industries. Other countries are retaliating against U.S. services.”

Wyden, along with Sen. Elizabeth Warren (D-Mass.), plans to introduce a privilege resolution demanding Congress reclaim its constitutional authority over trade policy that it delegated to the president in the Trade Act of 1974.

Even Republicans on the panel expressed concerns over the indiscriminate nature of country-specific, blanket tariffs and the likelihood that other countries would respond with countermeasures targeting specific industries.

“One of the things I’m hearing from my constituents back home is that trade retaliation does not fall on everyone equally,” said Sen. Todd Young (R-Ind.). “It could have a different effect on a New York tech firm than it might have on a Hoosier soy bean farmer. And I hope that’s something that’s being factored into your analysis.”

Greer offered little for senators to hang their hats on, though. “If some countries do chose to retaliate,” he said, “our hope and expectation is that those countries will do what they said, which is to bring down tariffs and non-tariff trade barriers.”