The Senate Finance Committee on Thursday pressed Jamieson Greer, the nominee for U.S. trade representative, to open global markets for U.S. farmers and protect home-state businesses from becoming collateral damage in President Trump’s trade wars.
Mr. Trump’s threat to impose 25% tariffs on Canadian and Mexican imports if they don’t crack down on illegal migration and drug trafficking could be the first test for Mr. Greer.
Democrats warned him they were already hearing gripes back home.
Sen. Maggie Hassan, New Hampshire Democrat, said New England customers who rely on Canadian energy supplies faced the risk of a surcharge on their home heating oil if tariffs go forward.
Mr. Greer said he would collaborate with border agencies to understand if the tariffs have the desired effect. He noted the levies are designed to combat things such as the loss of lives from fentanyl.
“People are really worried about being able to heat their homes,” Ms. Hassan said during Mr. Greer’s confirmation hearing. “There are other ways to combat the security issue that you are talking about than making people who are hardly making it through the winter pay $100 more for each tank of oil.”
Sen. Catherine Cortez Masto, Nevada Democrat, said companies in her state are losing business with Canadian partners due to the uncertainty, making them collateral damage in trade tensions. She said the fentanyl issue cited by Mr. Trump has been around for a long time, so there might be a better way to fight it.
“These small businesses, I just have to tell them, ’You’re just going to be unfortunately a victim of the trade war, suck it up, it’s better for the country, it’s better for everyone else.’ So that’s the answer to them? I don’t think so,” she said. “I look forward to working with you, but there’s got to be common sense.”
Mr. Greer is a trade attorney who served as chief of staff to Trade Representative Robert Lighthizer in the first Trump administration. The nominee is under the microscope because he’ll be tasked with striking bilateral deals for a president who is aggressive on trade and tariffs, a tax or duty paid by importers on the goods they bring in from foreign markets.
Republicans highlighted Mr. Greer’s depth of experience and calm demeanor.
“When we look at whether Jamieson Greer will be a good negotiator for America’s trade interests and a partner to this committee, his experience and skillset indicate the answer is yes,” committee Chairman Mike Crapo, Idaho Republican, said.
Mr. Greer’s grilling before the finance panel was cordial, but tension amid Mr. Trump’s bold tariff plans was palpable.
Mr. Trump says tariffs are a great way to force companies to return to America or keep their operations in the U.S., employ American workers and create revenue to fund domestic programs.
Presidents can impose tariffs without Congress in certain situations, such as to protect national security and address international emergencies. The U.S. relied on tariffs as a primary source of government revenue until the federal income tax was imposed in the early 20th century.
Tariffs can also result in higher prices for consumers. Foreign countries don’t pay the tariffs directly to the U.S. Treasury. In many cases, U.S. companies will pay the levies, and they might pass on at least some of the cost to consumers through higher prices.
“Donald Trump has repeatedly lied to the American people about who’s going to pay these tariffs,” said Sen. Ron Wyden, an Oregon Democrat who entered into the record a Wall Street Journal editorial calling the North American tariff threat “The Dumbest Trade War in History.”
Republicans, meanwhile, focused Thursday on expanding global markets for U.S. producers, especially farmers.
The senators said there are plenty of mouths to feed on Earth, and potato growers in Idaho, cattle ranchers in Montana and corn growers in Iowa would like to get their products to them.
Mr. Greer agreed.
“We need to go and gain market access where things have been closed until now,” he said. “For many decades, we have had a trading system where the United States opens its market over and over again, and others do not.”
Mr. Greer said places like India and Turkey impose tariffs of well over 30% on inbound farm products.
“These are markets where they need to open to the United States, and I think we need to use all of the tools at our disposal to do so,” he said.
Mr. Greer, prodded by GOP senators, criticized communist China for subsidizing its industries and flooding the rest of the world with cheap goods.
“It makes it very difficult for anyone else to compete,” he said. “It results in enormous overcapacity that floods global markets and our own markets. It’s something that has been a huge factor in the deindustrialization of the United States, which we need to reverse.”
Mr. Greer also defended Mr. Trump’s move to close the de minimis exception for low-cost goods from China. The exception allows parcels worth less than $800 — and sent directly to individuals in the U.S. — to avoid duties or closer inspection.
“We need to be very careful that this is not a loophole that is being used for tariff evasion, counterfeits, fentanyl and other drugs or simply to explode the trade deficit. I think we definitely need to take a close look at that,” Mr. Greer said.
The Coalition for a Prosperous America, an advocacy group for U.S. companies, said Thursday it supports Mr. Greer.
“Jamieson Greer is exactly the kind of [trade representative] America needs — one who puts American workers, manufacturers and farmers first, rather than blindly following the failed free trade policies that have decimated our industrial base for decades,” CPA Chairman Zach Mottl said.
In late November, Mr. Trump said he was tapping Mr. Greer to lead his trade team because, during his first term, the nominee was instrumental in imposing tariffs on China and renegotiating the North American trade agreement.
Mr. Greer said his ancestors are from a town called Trade, Tennessee.
“Maybe it’s destiny that I’m here today,” he said.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.