Trump Trade Rep Asked: Do You Have A Process To See If Tariffs Are 'Actually Achieving Their Goals?'

2 days ago

During a Senate Finance Committee hearing on Tuesday, Sen. Todd Young (R-IN) spoke about the process the Trump Administration can use to determine the efficacy of tariffs.

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Transcript

00:00Thank my colleague. Next is Senator Young.

00:06Good to have you here, Ambassador Greer, and let me just begin by commending you.

00:13You've been very accessible as we've tried to get some clarity on exactly trade policy and where we're headed

00:21and how we expect counterparties to move and all the rest.

00:25You return my phone call immediately and your team's been in touch with mine.

00:29And so just that speaks very well of you and the Trump administration, because this is creating some anxiety,

00:39this current tariff posture among some of my constituents.

00:43On balance, I would say most of my constituents are supportive,

00:47and they recognize that some turbulence might be required in order to end up in a better spot and reset trade relations.

00:58I think one of the things I'm hearing from constituents back home is that trade retaliation doesn't fall on everyone evenly.

01:09It has a different impact on a New York tech firm than it might have on a Hoosier soybean farmer.

01:16And I hope that's something that's being factored into your analysis,

01:22as you think about how foreign countermeasures could impact the American economy generally

01:29and then in terms of particular sectors and parts of the country.

01:34So unpacking those trade-offs for the American people, I think, is going to be very important moving forward.

01:43In Indiana, rural communities and export-driven manufacturers oftentimes feel the consequences,

01:51and they feel the consequences first.

01:53So, Ambassador Aguirre, is USTR actively mapping out which sectors and regions are going to bear the brunt of certain retaliatory measures

02:05and thinking about contingency plans?

02:09So, Senator, thank you.

02:11Thank you for your concern.

02:13And I know this is something that we all watch.

02:14I watch it very closely.

02:16The president watches it whenever there's any kind of announcement of proposed retaliation.

02:20We look at it very closely.

02:21We look at the tariff lines.

02:22We look at what might get hit.

02:24The good news so far is that most countries have said they're not going to retaliate on this

02:28and that they would like to seek to talk to us first, find out more about the program,

02:32what they can do to meet our goals, which, as you know,

02:35we're dealing with an emergency in terms of manufacturing and our trade deficit.

02:38And so that is what most countries have chosen to do.

02:42My sense is that if there are some countries that choose to retaliate regardless of our need to address this emergency,

02:48our hope and expectation is that countries will do what they've said,

02:52which is bring down their tariffs and non-tariff barriers to provide better markets and alternative locations.

02:59Well, as I communicate some of the impacts in my state to your office,

03:04and as I know you and your team review this,

03:06I hope you will keep those considerations in mind as you develop your negotiating priorities.

03:15Yes, we certainly will and look forward to continued collaboration with you.

03:18You know, in other areas of federal policy, we have clear metrics or criteria to measure success.

03:27We do it in social policy.

03:30We do it with respect to education policy, test scores.

03:34We do it in defense policy.

03:37We try and measure readiness through various metrics.

03:41But in trade policy, especially tariffs, we seem to lack a clear set of metrics and a feedback loop.

03:52Does USTR have a formal process to evaluate whether these tariffs are actually achieving their goals,

03:59whether that's reshoring or market access or reciprocity, some metrics associated with that?

04:08I'll let you speak to that, sir.

04:10Senator, as we've stated, the underlying basis for this action is the national emergency arising from the trade deficit.

04:19President Biden left us with a historically high $1.2 trillion trade deficit,

04:23which we understand and know to be driven, at least in part, in large part, by non-reciprocity.

04:29And so when we're looking at whether that emergency is abating or being affected,

04:34is we're looking at outcomes.

04:35Certainly, if other countries are bringing in their tariffs and their non-tariff barriers, that's a good indicator.

04:42That's the right direction.

04:43We also want to make sure that the trade deficit is going in the right direction.

04:46And that means two things.

04:47It means we have better access and we can export more to these other markets.

04:50But it also means that they're not using us as a dumping ground for their overproduction or their subsidized products.

04:56And so it goes both ways.

04:57And so it's a country-by-country analysis.

05:00We're looking at it case-by-case.

05:02They come in and talk to us on a country-specific basis where we can articulate to them what their trade barriers are.

05:07Right?

05:07I've got this big book with all the trade barriers, what their non-reciprocal tariff rates are,

05:11and what we expect in terms of fair trade.

05:14Well, thank you.

05:15I'm already over time.

05:16It's amazing how quickly we go through this, which is why I really appreciate that direct line to you and your team.

05:23I should also mention that we heard from Secretary Besant to discuss tariffs the other day as well.

05:30We'll be in touch.

05:31We want to work with you on critical minerals policy, on digital trade policy, and many other areas that I know are your priorities as well,

05:40and President Trump's priorities.

05:41And thank you for your ongoing efforts to bring more clarity to the markets and to our businesses and farmers so that we know exactly what lies ahead.