What’s Next For Tariffs? Here’s What the Trade Representative’s Confirmation Hearing Revealed | Global News Avenue

President Donald Trump’s trade representative nominee Jamieson Greer defended the president’s active use of tariffs on the Senate panel.

Greer, speaking on Thursday at the Senate Finance Committee (which, if confirmed, will play a role in developing nations’ trade policies), sheds light on how the government uses tariffs, a key part of Trump’s economic policy platform . The Senator has not voted to confirm Greer and may discuss his nomination in the coming days.

Trump threatens to Canada and Mexico in the first month of his presidency and 10% tariff In China. Tariffs to Mexico and Canada Delayed The two countries said they will strengthen border security to prevent drug smuggling and illegal immigration.

“I firmly believe that we have a relatively short time to reorganize the international trade system to better provide us with benefits,” Greer said.

What is tariff? Almost everything

Greer said one of the main uses of tariffs is to ensure “reciprocity” in other countries, that is, to enable them to lower their tariffs and open the market to U.S. companies.

“For decades, we have built a trading system and the United States has opened its markets over and over again, and others have not,” Greer said.

Greer also said the tariffs could be used to raise funds to fund governments, encourage companies to make products in the United States rather than abroad, and achieve other policy objectives that are not related to trade. For example, he cited Trump’s use of tariff threats to enable Canada and Mexico to combat fentanyl smuggling.

Several Democratic senators criticized Trump’s use of tariffs, citing that if imposed, they could raise consumer prices and damage relations with allies.

The Trump administration nostalgia in the 1890s (1890s)

Like Trump himself often, Greer scattered history books when Democrat Ron Wyden called for a role model for the positive impact of tariffs on the U.S. economy.

Greer noted that before the income tax was imposed in 1913, the federal government was funded almost entirely by tariff revenues and believed that protective tariffs led to rapid industrial expansion in the United States in the late 19th century.

Greer admits that things are different now. For example, the government is much larger now than it was then compared to the country’s economy. (For example, the entire U.S. Army in the 1890s would be comfortably integrated into the stadium where today’s Army football team plays, with 4,000 seats remaining.)

“I don’t think we have tariff revenues to fund the entire government tomorrow,” he said. “But I think historically we have earned tariff revenues, which is a big part of funding the government before income tax.”

Many economists say that broad-based tariffs that support large amounts of government funding are economically disruptive and can raise consumer prices. Although overall inflation is low during Trump’s first term, he is concerned about certain products (including washing machines, Increase consumer prices.

The government believes that the trade deficit is a problem to be solved

Greer said the government’s top priority will reduce us Trade deficit With other countries.

The United States usually buys much more money from other countries than we sell. That Trade deficit set a record record in Decemberpartly because companies support Trump’s tariffs by loading foreign products.

“For me, it’s a huge problem,” Greer said. “It’s a problem for our workers. It’s a problem for exporters. … I think, in the short term, we’ll be Contact these countries to assess their unfair trade practices and why they can own and maintain these huge trade imbalances.”

Trade imbalance is inherently unbalanced Economists debate issues.