Jamieson Greer, President Donald Trump’s nominee for U.S. Trade Representative, testified before the Senate Finance Committee on Thursday. He stated that a universal tariff requires further analysis to understand its potential impact on the growing U.S. trade deficit. Greer also emphasized that trading partners must lower their import barriers to maintain access to the American market.
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Greer addressed President Trump’s campaign proposal of a minimum 10% universal tariff, stating that it would be evaluated as part of a trade memo issued on Inauguration Day, requiring a report by April 1st. This study will also analyze the effects of the increasing U.S. goods trade deficit, which reached a record $1.2 trillion in 2024 due to a surge in imports.
Trade Deficits and Offshoring: The Need for Balance
“A significant question is the acceptable level of trade deficit,” Greer explained to the committee. “The trade deficit largely represents manufacturing jobs that have moved overseas.” He argued that a universal tariff warrants careful consideration to determine its potential to reverse the trend of growing deficits and job offshoring. Greer, a Washington trade lawyer and former Chief of Staff to former USTR Robert Lighthizer, echoed Lighthizer’s stance on pursuing smaller trade deficits and reciprocal treatment from U.S. trade partners.
He highlighted the “huge problem” of expanding trade deficits with countries like Vietnam, which maintain high tariff and non-tariff barriers. Data from the Census Bureau revealed that the U.S. goods trade deficit with Vietnam increased by 18% in the past year, reaching $123.5 billion. This increase is partly attributed to companies relocating production from China to avoid tariffs implemented during Trump’s first term.
Reciprocity: A Key to Market Access
If confirmed, Greer pledged to swiftly assess unfair trade practices employed by countries with significant trade imbalances with the U.S. He intends to communicate that continued access to the U.S. market requires improved reciprocity.
Addressing Fentanyl and Illegal Immigration
Responding to questions about Trump’s tariff threats against Canada and Mexico, and the new 10% duties on Chinese imports, Greer clarified that these actions aim to curb the flow of fentanyl into the U.S. and address illegal immigration. “The president’s actions are about fentanyl,” Greer stated, emphasizing the urgency of preventing further deaths caused by the deadly opioid. He stressed the need for agreements to combat this issue.
Re-evaluating the China Trade Relationship
Greer asserted that the U.S.-China trade relationship requires rebalancing, extending beyond tariff reductions to include dismantling non-tariff barriers. He committed to reviewing China’s compliance with the 2020 “Phase 1” trade deal, which temporarily halted a two-year trade war and included Chinese commitments to increase purchases of U.S. agricultural products, energy, manufactured goods, and services.
“The next steps are dispute settlement and enforcement,” Greer affirmed. In addition to the recently imposed 10% tariffs, Trump previously proposed 60% duties on Chinese goods during his presidential campaign. Greer also advocated for reviewing the U.S.-Mexico-Canada Agreement (USMCA) to prevent China and other countries from exploiting it for duty-free access to the U.S. market. The USMCA is scheduled for renegotiation by 2026.
Strengthening USMCA and Digital Trade
He further emphasized the importance of holding Mexico and Canada accountable to their USMCA market access commitments, particularly regarding dairy for Canada and energy for Mexico. Greer also called for a more assertive approach to digital trade, aiming to counter regulatory measures by South Korea and the European Union against U.S. tech companies. He stressed that the U.S. should not outsource its regulations and will not tolerate discriminatory practices.
Expanding Agricultural Trade
Addressing concerns about agricultural trade, Greer expressed his commitment to expanding foreign markets for competitive U.S. farmers. He identified India and Turkey as markets requiring full access for U.S. agricultural goods. In his opening statement, Greer outlined his vision for a pragmatic U.S. trade policy centered on revitalizing American manufacturing and strengthening supply chains. He underscored the importance of a robust manufacturing base and innovation economy for maintaining U.S. strength and security.
