Tariff hearing chock full of bipartisan critique

Wall Street saw a rebound into the green as multiple foreign countries came to the negotiating table with President Donald Trump on tariffs. However, some lawmakers were still critical of the administration’s actions, with one Republican describing the tariff actions as “alla prima.”

U.S. Trade Representative Jamieson Greer testified before the Senate Finance Committee about the impact of the “China Shock” on the U.S. economy. He highlighted the loss of 5 million manufacturing jobs and the closure of 90,000 factories since the Clinton administration. Greer emphasized the need for strategic action to address the $1.2 trillion trade deficit-in-goods left by the previous administration.

During his testimony, Greer pointed out the challenges faced by the U.S. in procuring essential materials during the COVID-19 pandemic. He also highlighted the decline in the country’s manufacturing capabilities, citing the significant drop in the production of ocean-going vessels compared to World War II.

Greer discussed the trade imbalances with countries like Australia, where the U.S. faced restrictions on beef and pork exports while facing tariffs on American products. The trade agreements with Australia came under scrutiny, with Senator Mark Warner questioning the necessity of imposing tariffs on the country.

Senator Warner and other lawmakers expressed concerns about the impact of the tariffs on American families and small businesses. Senate Finance Committee ranking member Ron Wyden drafted a bipartisan resolution to address the global tariffs that he described as “aimless” and “chaotic.”

Greer defended the administration’s tariff actions, citing the need to address unfair trade practices by U.S. allies like the European Union and India. He highlighted the negotiations with countries like Vietnam to lower tariffs on American agricultural products.

Senator Bernie Sanders expressed reservations about free trade agreements and raised questions about the legal basis for President Trump’s tariff decisions. He emphasized the importance of fair trade policies that prioritize American workers and industries.

On the Republican side, Chairman Michael Crapo supported the administration’s efforts to negotiate trade deals and reduce barriers to trade. Senator Charles Grassley raised concerns about the delegation of authority to the president on trade policies, while Senator Thom Tillis sought clarity on accountability for the outcomes of the tariff actions.

Overall, the hearing highlighted the complex challenges facing the U.S. in international trade and the need for strategic and fair trade policies to support American businesses and workers. Wall Street’s response to the tariff negotiations underscored the importance of finding a balance between protecting domestic industries and promoting global trade.