Jamieson Greer, President Donald Trump’s nominee for US trade representative, said “unfair trade practices” against the US have contributed to a more than $1 trillion trade deficit, and reducing it by opening new markets and removing trade barriers is the key priority for the new administration. He also backed the idea of using a “universal tariff” to achieve reciprocal market access for US goods and services.
Jamieson Greer, President Donald Trump’s nominee for US trade representative, pledged during a confirmation hearing today that reducing the trade deficit by opening new markets for US exports will be his key priority. He argued that to achieve reciprocal market access the US might need to use a “universal tariff’ as leverage in negotiations. “In the context of our trade deficit, which is over a trillion dollars... a universal tariff is something that should be studied and considered to see if it can reverse the direction of that deficit and the offshoring that I don't think any of us wants,” Greer told the Senate Finance Committee.
He suggested addressing “unfair trade practices” through tariff negotiations could help remedy the unbalanced trade relationship with China, Vietnam and other economies.
“We have a lot of trading partners like this that enjoy very substantial trade access in the United States, and we don't have reciprocal access going the other way,” Greer said. “And to me, this is a huge problem, and it's a problem for our workers.”
He suggested that tariffs will be used by the US as leverage, not an end goal.
“If you're trying to get rid of a trade barrier, there are few ways to do it, right? You can try to negotiate it, which is on its face, not always successful if you don't have the leverage behind it,” Greer said.
“We need to have leverage, and if we need to gain leverage by taking investigatory actions or other actions, we'll do that. It would be much better to do this on a negotiating basis, but we'll do whatever we need to do to try to fix the situation,” he added.
A former trade lawyer and chief of staff to Trump’s former US Trade Representative Robert Lighthizer, Greer told senators in his opening statement that the US must adopt an “active and pragmatic” trade policy once again.
“With respect to tariffs and trade policy, we need to create incentives to produce in America, and we need to create incentives to get market access,” Greer said.
“We know we have a strong economic team, and if I am confirmed I expect to be able to take strong trade action while helping ensure that the economy is growing for average Americans,” he said.
If sworn in as U.S. trade representative, Greer would work with Trump to oversee coordinated international trade, direct investment policy and he will oversee negotiations with other countries — a role that could be pivotal amid Trump’s escalating trade war threats.
He would work closely with Trump’s commerce secretary pick, Howard Lutnick, who cleared the Senate panel yesterday and is awaiting a full Senate vote in the coming days.
Over the weekend, Trump announced a 25-percent tariff on all Mexican and Canadian goods, except for Canadian energy resources, which were subject to a 10-percent tariff. The plan was paused for 30 days, though, after both countries agreed to strengthen border security and take measures to curb the flow of fentanyl and illegal immigration.
Senator Peter Welch, a Vermont Democrat, asked Greer whether he supported the president’s authority to impose tariffs under the pretense of an international emergency, as was done with Canada and Mexico. Greer responded that he does.
Ranking member of the Senate Finance Committee, Oregon Democrat Ron Wyden said, “the committee can’t function in the dark as it did over the weekend.
“So I expect that you'll pick up the phone and call us when trade is on the agenda in this administration,” Wyden said.
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