With a fresh round of U.S. tariffs set to hit the world Wednesday, America's top trade representative faced pushback Tuesday from lawmakers alarmed by the fallout from President Donald Trump's trade war.
United States Trade Representative Jamieson Greer maintained that the global tariffs are getting results as he fielded pointed questions from members of the Senate Finance Committee about Trump's "reciprocal" tariffs.
"The president's strategy is already bearing fruit," Greer said.
Markets have been in a tailspin since Trump last week announced a 10 per cent baseline tariff on imports from most countries and higher duties on dozens of nations.
Those higher tariffs include a 20 per cent levy on imports fromthe European Union, a 25 per cent tariff on South Korea and a 32 per cent levy on Taiwan.
While Canada isn't being targeted by Trump's global tariffs, the country is being hit by U.S. automobile, steel and aluminum tariffs and still faces the ongoing threat of economywide fentanyl-related tariffs.
In early March, Trump imposed — and then partially paused — 25 per cent across-the-board tariffs on Canada and Mexico, with a lower 10 per cent levy on energy and potash. Goods imported under the Canada-U.S.-Mexico Agreement on trade, known as CUSMA, do not face tariffs. Imports that fall outside the continental trade pact are hit with the 25 per cent tariff.
Many senators said Tuesday that the trade war with Canada is hurting their states' economies. They said small businesses are laying off employees and the tourism industry in border states that rely on Canadian travellers is being decimated.
"Minnesotans are freaked out," said Democrat Sen. Tina Smith.
Trump's massive tariff agenda continues to sow market confusion and senators repeatedly asked Greer to explain what Trump was trying to achieve.
Some members of the Trump administration have said the duties will be in place for the long term, in order to raise revenues and return manufacturing to the U.S. Others have said the tariffs are a negotiating tactic meant to land tradedeals.
Trump posted on social media that he is open to negotiations, adding he had a call with the acting president of South Korea.
"We have the confines and probability of a great DEAL for both countries. Their top TEAM is on a plane heading to the U.S., and things are looking good," Trump posted Tuesday. "We are likewise dealing with many other countries, all of whom want to make a deal with the United States."
White House Press Secretary Karoline Leavitt said Tuesday that Trump's message is clear. "To countries around the world, bring us your best offers and he will listen," she said.
She said deals will only be made if they benefit American workers and decrease trade deficits.
Experts have said Trump's tariffs are undermining CUSMA, the continental trade pact negotiated during his first administration. Prime Minister Mark Carney, who spoke with Trump in March, has said the two leaders agreed to begin negotiations on a new economic and security relationship immediately after the Canadian election on April 28.
Greer said that the economy is in for a "drastic, overdue change" but added it may be "challenging at times."
Greer said he's been contacted by about 50 counties looking to avoid the devastating duties. He ruled out exemptions for products or companies thrown into turmoil by tariffs.
Big swings rocked Wall Street again Tuesday as the globaltariffs threatened to crack Republican solidarity.
"It seems like we’ve decided to begin a trade war on all fronts," Republican Sen. Thom Tillis of North Carolina told the Senate hearing.
"I wish you well,″ Tillis said to Greer. "But I am skeptical."
This report by The Canadian Press was first published April 8, 2025.
