Greer: More Deals Coming Soon; Seeking Manufacturing ROO Changes in USMCA

Greer, who spoke with senators on the Senate Appropriations Committee for about two hours earlier this week, defended higher tariffs on allies and strategic competitors, arguing that the previous approach to trade led to 70,000 factory closures after NAFTA and "all the manufacturing has gone to China and Vietnam and elsewhere."

Greer said he wanted senators' takeaway from his appearance to be that "we have to have a change," and it needs to be managed trade.

Although many Democrats pushed Greer to acknowledge tariffs' costs for consumer goods, and several suggested that the president's tariff hikes aren't authorized under the International Emergency Economic Powers Act, a number of Republicans told Greer that tariffs on inputs, machinery and materials are hurting producers in their states.

Sen. Deb Fischer, R-Neb., told Greer that while tariffs have helped some industries, "others have really suffered." She said Nebraska manufacturers have either laid off workers because of the harms of tariffs, or are considering it. She said, "when they are having to pay an increased cost for materials and inputs and their competitors are not, they are at a disadvantage."

She said in one case, a Canadian company that makes the same product can export its product duty-free, because it meets USMCA rules of origin, and can sell it for less than the Nebraska-based factory can.

"Hopefully, we can figure out some solutions," she told Greer.

She also questioned what precisely China promised on buying soybeans when the trade truce was announced. At that time, Treasury Secretary Scott Bessent said China would buy 12 million metric tons "this year," but now the administration is talking about this growing season.

Greer clarified that the 12 million metric tons is for soybeans from this growing season, which will be sold through February or March. He also clarified that the 25 million metric tons promise for 2026 is not the calendar year, but next growing season.

Sen. Katie Britt, R-Ala., told Greer that manufacturers in her state need to import industrial equipment to expand operations, and asked how he could ensure the prices on that machinery are affordable and predictable.

Greer replied that the fact that U.S. companies have to import machinery to manufacture is "really disturbing," and "reflects decades of bad policy."

He said, "the president's program is not one that gives out tons of exclusions," but said any company can come talk "about their specific issues."

Britt also told Greer that a major manufacturer in Huntsville told her that its "tariff exposure on imported parts and components" can be higher than the tariff paid on a finished product that competes with the product it makes.

Appropriations Chairwoman Sen. Susan Collins, R-Maine, told Greer that while she appreciates that Maine blueberries frozen in Canada can return duty free, and that Maine lumber can be turned into pulp across the river in Canada and return duty free to become paper, the 50% tariffs on steel and aluminum are harming producers in her state. She said lobster fishermen have to pay more for traps, and the blades for mowing in blueberry fields are available only from Canada.

She asked, "Is reopening the exclusions process under consideration?"

Greer said he would raise it with Commerce Secretary Howard Lutnick, and said that while "we hear often from domestic producers who are having a large benefit from the program, we also hear at times folks will come and discuss the effects" like those she mentioned. He said people are also trying to understand how the derivatives tariffs work.

Collins also brought up apparel importing, saying that LL Bean moved manufacturing from China to Vietnam, and "would not have anticipated that Vietnam would be subject to such a high tariff." She asked if Vietnamese apparel might be exempted from reciprocal tariffs as a product that is not produced in the U.S.

Greer said the list that will be exempted from reciprocal tariffs will only be products that are "geologically not present" or "cannot be grown" in the U.S. due to our climate. Greer later cited data that apparel's prices have fallen 0.1% this year.

Sen. Chris Van Hollen, D-Md., also brought up apparel, citing a microbusiness in Silver Spring, Princess Awesome. He complained that "large, well-connected companies are cutting special deals for themselves," while small business owners like those of Princess Awesome are putting tariffs on their credit cards to keep operating. He said the apparel company paid $74,000 in tariffs over just a few months.

Greer later acknowledged that Trump told a reporter recently that he would be open to reducing tariffs on "some" other goods besides coffee and beef. Trump then added, "And on some I’ll increase tariffs. "

Greer said, "I am constantly trying to find ways to calibrate the tariff program."

Greer said the highest tariffs are in China and Asian countries "where there's a lot of overcapacity," and said that the 15% tariffs on Japan, South Korea and the EU are to counteract the trade deficits the U.S. has with those partners. He said many of those imbalances exist because of non-market policies.

"It's not because Europe's competitive," he said in an indignant tone. "They have terrible policy when it comes to energy and regulation and all this stuff."

He said the Western Hemisphere has the lowest tariffs. "That's not a mistake, that's strategic, that's where we want to have a lot of our supply chains."

Sen. Gary Peters, D-Mich., asked Greer what U.S. priorities would be as it seeks to review USMCA.

"We're still forming a lot of our views," Greer said, though he said clearly Mexico and Canada will have to resolve irritants, such as Canada's dairy TRQ administration.

He said Mexico has come a long way in resolving irritants, and said the threat of tariffs "is quite a motivator."

Greer said he expects to negotiate for different rules of origin in manufacturing sectors outside cars and trucks. "We'd like to see a situation where the rules of origin really benefit content for the United States and also, of course, Canada and Mexico."

Greer told the panel he would only bring the revised FTA for a vote if it changes U.S. law.

Peters complained that tariffs on Canadian goods had been harmful for Michigan, and Greer replied, "Most Canadian goods come over duty free."

Commerce Subcommittee Chairman Jerry Moran, R-Kan., who led the hearing, asked Greer to maintain duty-free imports of aerospace parts and products, reminding him that the U.S. sector is the strongest producer worldwide, and saying that Canadian and Mexican supply chains are crucial.

Greer said that the U.S. has agreed to zero-for-zero treatment with the U.K., Europe, Japan and South Korea, recognizing the fact that aerospace is a net exporter, and that the tariff-free trade in the sector dates back to 1979. As far as offering those terms to Brazil, India and Singapore, he said, "We don’t have deals yet with these countries. With India, it’s fairly far advanced. And my expectation: we can certainly talk about extending treatment to those countries as well if they’re willing to play ball and come to the table and give the United States the market access it should have.”

Sen. John Kennedy, R-La., pressed Greer on whether the Senate should abandon its Russia sanctions bill, which would authorize 500% tariffs on the goods of countries that import Russian fuel. Kennedy said he cares about Ukraine, but he doesn't believe the White House will ever greenlight the bill, because it doesn't want to upset the delicate truce with China.

In his opening statement, Greer had said that the U.S. has stabilized its relationship with China, and that as it negotiates, it intends to hold tariffs steady as long as China keeps rare earths flowing, buys ag products and curtails fentanyl chemicals shipments. He later told Van Hollen, "We are in a situation where we are trying to reindustrialize, and we want to get along with China, we want to get rare earths from China while we reindustrialize."

In response to Kennedy, Greer said, "We think it's a powerful bill, it's not China specific," and noted that the tariff language gave the president discretion, it doesn't require 500% tariffs on all purchasers.

Kennedy responded, "So why hasn't the administration given us the green light?"

Greer said he'd ask the White House legislative liaison.

Kennedy also asked Greer about whether the White House will block the African Growth and Opportunity Act if Congress passes it.

Greer acknowledged many members tell him they want to renew AGOA, and the administration is "open to that one-year clean authorization."

At the time Greer was speaking, a House committee had not yet passed a clean three-year authorization.

During that one year, Greer said, the administration hopes AGOA would be rewritten to require better market access "rather than being just kind of a giveaway."

He also questioned whether AGOA has worked as it was designed over the last two decades, since China has moved into Africa over that time.

Kennedy argued that South Africa shouldn't be an AGOA beneficiary. He said, "South Africa's clearly not America's friend," and said they are "buddies" with enemies of the U.S.

Greer responded, "That's correct. When it comes to trade, they have a lot of barriers. We've made clear to the South Africans [that] if they ever want to have a better tariff situation with us, they need to take care of these tariff and non-tariff barriers."

Greer also argued that if South Africa is in AGOA in the future, it is still being punished, because it has a 30% tariff while most of its neighbors have a 10% tariff. He said he would be "happy to consider" removing South Africa, however. "If you think we should give South Africa different treatment, I'm open to that. I think they're a unique problem."