


U.S. Trade Rep. Jamieson Greer testified before the Senate on Tuesday in a hearing where he defended President Donald Trump’s aggressive trade agenda and massive ramp-up of tariffs.
Stocks have slid since Trump announced extensive 10% tariffs on all imports and, in some cases, higher tariffs based on trade deficits. The tariffs will go into effect at midnight on Wednesday, and Greer fielded questions from Democrats and Republicans.
Recommended Stories
- 'Boys will be boys': Musk fires back at Navarro over Tesla tariff comments
- Navarro promises the market is finding the bottom: 'I guarantee no recession'
- Dave Portnoy warns of 'blue wave' in midterm elections if stock market doesn't improve
During the Senate Finance Committee hearing, Democrats railed against the Trump administration’s tariff agenda, saying it is hasty and damaging to the economy. They also touched on how the stock market has reacted negatively to the sweeping tariffs and expressed concerns about inflation.
Republicans on the committee typically praised Trump’s goal of making trade more equitable. They expressed optimism that trade deals can be inked, but many made the point that they hope trade deals are the goal and that the tariffs are not set in stone but merely a means to raise revenue.
Greer argued that the country’s trade imbalance and current situation with global tariffs required such sweeping action and that, while there might be turbulence in the near term, the goal is creating jobs in the United States and regrowing the country’s manufacturing base. He also said that Wall Street analysts predicting a recession and millions of lost jobs are incorrect.
Democrats go on the attack
Democrats consistently branded the tariffs as being part of a “trade war” sparked by the president. Sen. Ron Wyden (D-OR), the Finance Committee’s top Democrat, said he doesn’t think the Trump administration has a solid strategy regarding the tariffs.
Democratic members on the panel also noted that the tariffs were applied even to ally countries and major trading partners.
They also pointed out that markets have been falling and that people in their home states are concerned about the fallout from the trade policy upheavals. Sen. Tina Smith (D-MN) knocked the tariffs as arbitrary and said her constituents are “freaking out” over the fallout.
Sen. Elizabeth Warren (D-MA), one of Trump’s harshest critics, mentioned the potential for a recession and the prospect of job losses. She repeatedly asked Greer where the red line is for tariffs if they begin to deteriorate the economy.
“Look, if Republicans are serious about protecting American jobs and fighting inflation, then they can join Democrats right now to pass a resolution to fix Trump’s reckless tariffs; this economy is teetering on the edge of collapse,” Warren said.
Democrats also raised fears about inflation. While inflation has fallen from its multi-decade high of about 9% during the Biden administration, it is still running too hot, and some economists fear Trump’s tariffs could make the situation more difficult.
Greer defends tariffs
Greer said that a trade war is not the goal of Trump’s tariff agenda. He said that the tariffs are being designed to renegotiate trade policies and lower trade deficits. He also defended the use of across-the-board tariffs, noting the overall U.S. trade deficit, and said global tariff policy can’t be like “Swiss cheese.”
“I know everyone is concerned about Wall Street; I’m just concerned about Main Street and getting all these jobs back,” Greer said.
He also defended Trump’s declaration of an emergency, noting the loss of millions of manufacturing jobs over the years. He called the situation “urgent.”
“The United States has lost 5 million manufacturing jobs and 90,000 factories since 1994,” Greer told senators on the panel. “[former President Joe Biden] left us with a $1.2 trillion trade deficit in goods, the largest of any country in the history of the world.”
During the hearing, Greer also dismissed the idea that the new tariffs could raise prices for U.S. consumers. He said that when Trump implemented “historic” tariffs on China during his first term, inflation decreased slightly instead of rising.
Greer also touched on the pandemic and the difficulty the U.S. had in procuring semiconductor chips for automobiles as well as materials for pharmaceuticals and personal protective equipment that were in hot demand at the time.
Republicans praise Trump’s tariff goals
Finance Committee Chairman Mike Crapo (R-ID) emphasized the importance of restoring faith in free markets after the Biden administration. He also said that free trade doesn’t work if other countries can simply ratchet up tariffs on the U.S. without consequence.
“While tariffs inherently may be seen at odds with free trade, we must also acknowledge that many of our trading partners deploy barriers that have gone unchallenged for too long,” Crapo said. “Free trade, by definition, must be reciprocal. We do not have it if others can impose barriers on us unchallenged.”
Many Republicans on the committee seemed to give Trump and Greer the benefit of the doubt on tariffs and indicated they want to wait and see how things shake out. Many of them also praised the president’s goals for the tariffs.
During the hearing, Sen. John Cornyn (R-TX) said that some unfair trade practices on the international stage have resulted in the “deindustrialization of America.” Trump campaigned on such major tariffs, and Cornyn mentioned that the president has long held strong beliefs regarding trade protectionism.
“I find it interesting that people express surprise at President Trump’s policies when he’s been talking about these policies for — best I can tell — for decades and how unfair trading arrangements are between various countries,” Cornyn said.
Some Republicans express concerns over the future of tariffs
Despite praise for Trump’s goals and concern about the unfair trade balance, some Republicans in the committee expressed concerns about the long-term goals of the new tariff agenda and its potential to affect the prices of goods for constituents.
Sen. Steve Daines (R-MT) said he shares Trump’s goal of ending unfair trade practices but also argued that consumers will be burdened with the cost of some of this policy and highlighted potential inflationary impacts. He said a trade war would be bad for consumers.
“Who pays these high tariffs? In the short and medium term, it will be the consumer,” Daines said. “And so I’m worried about the inflationary effect.”
Sen. James Lankford (R-OK) raised concerns about garment manufacturing and said that many inputs are purchased from other countries. He said that manufacturers in his home state are asking about exclusions and exceptions to the tariffs and how they will be handled.
Greer told Lankford that Trump has been clear that he doesn’t intend for there to be exclusions and exemptions and said that doing so could undermine the overall point, which is for the trade deficit to decline.
BEAR MARKET: WHAT IT MEANS AND WHY IT MATTERS
Sen. Thom Tillis (R-NC), noting that he isn’t a trade expert, hopes that the Trump administration’s trade approach will work but said he wanted to know the individual who should be blamed if it doesn’t.
“Whose throat do I get to choke if this proves to be wrong?” Tillis asked Greer.