US Tariff Battle: Why Lawmakers Confront Trade Chief Over Rising Prices

Ranking Member Chris Van Hollen said consumers were paying “higher prices for everyday necessities from groceries to clothing to home goods because of the Trump tariffs,” citing estimates that tariffs could cost households “roughly $4,900 a year.” Senator Patty Murray pressed Greer directly: “Do tariffs raise prices for American consumers?” Greer responded: “I don't think they do… they have a very limited impact.”

Mid-sized manufacturers, small businesses, and exporters also featured prominently in lawmakers’ accounts. Senator Susan Collins said lobster and blueberry producers in Maine were facing sharply higher equipment costs because the 50 per cent steel and aluminum tariff “has increased costs for essential equipment like traps.” Greer said he would raise the issue with Commerce Secretary Howard Lutnick.

Senator Jeanne Shaheen described a New Hampshire business that “lost 85 per cent of its wholesale sales” after tariff escalations disrupted cross-border commerce with Canada. Greer replied that most goods moving under USMCA rules face zero tariffs, but said he would speak with the affected company.

A recurring theme was the unpredictability firms face when ordering inputs abroad. Senator Jeff Merkley said businesses were being hit with higher-than-expected liabilities “when they ordered it, the tariff was 10 percent… when it arrived, it was 30 per cent.” Greer said the administration uses “goods on the water” provisions to reduce shocks but acknowledged, “That's a real issue.”

Despite those concerns, Greer portrayed the administration’s approach as a necessary correction. “We can't just keep the status quo,” he said. “If we continue the type of trade policy… we've been working under for decades, we'll continue to have the result we have,” including factory losses following NAFTA and China’s WTO accession.

He argued that tariffs were both enforcement tools and bargaining leverage. “They respond to enforcement,” he said. “That's how we're able to generate compliance and market opening,” Greer said. The administration was pursuing deals across Europe, Southeast Asia, and the Western Hemisphere, each incorporating tariff changes and commitments on non-tariff barriers, digital trade, and FDA approvals.

Senators also probed USTR’s funding request—the largest in its history. Greer said the agency had been “flat for five years” and needed additional staff for enforcement. “We have to have people who monitor the situation… we have to draft the actions… we have to execute,” he said.

The hearing also touched on renewable fuels, aviation, and industrial supply chains. Moran urged more attention to sustainable aviation fuel, and Greer said recent EU commitments to purchase “$750 billion in US energy products” could create openings. On aviation, he reaffirmed that USTR was applying established zero-tariff norms, saying: “This is a sector that's important to me.”

In closing, Greer said the administration was pursuing managed trade to protect workers and reduce deficits. “We need to get to a world where we have trade, but the trade is managed… for the benefit of American workers and producers,” he said.

- IANS