00:00Thank my colleague. Next is Senator Young.
00:06Good to have you here, Ambassador Greer, and let me just begin by commending you.
00:13You've been very accessible as we've tried to get some clarity on exactly trade policy and where we're headed
00:21and how we expect counterparties to move and all the rest.
00:25You return my phone call immediately and your team's been in touch with mine.
00:29And so just that speaks very well of you and the Trump administration, because this is creating some anxiety,
00:39this current tariff posture among some of my constituents.
00:43On balance, I would say most of my constituents are supportive,
00:47and they recognize that some turbulence might be required in order to end up in a better spot and reset trade relations.
00:58I think one of the things I'm hearing from constituents back home is that trade retaliation doesn't fall on everyone evenly.
01:09It has a different impact on a New York tech firm than it might have on a Hoosier soybean farmer.
01:16And I hope that's something that's being factored into your analysis,
01:22as you think about how foreign countermeasures could impact the American economy generally
01:29and then in terms of particular sectors and parts of the country.
01:34So unpacking those trade-offs for the American people, I think, is going to be very important moving forward.
01:43In Indiana, rural communities and export-driven manufacturers oftentimes feel the consequences,
01:51and they feel the consequences first.
01:53So, Ambassador Aguirre, is USTR actively mapping out which sectors and regions are going to bear the brunt of certain retaliatory measures
02:05and thinking about contingency plans?
02:09So, Senator, thank you.
02:11Thank you for your concern.
02:13And I know this is something that we all watch.
02:14I watch it very closely.
02:16The president watches it whenever there's any kind of announcement of proposed retaliation.
02:20We look at it very closely.
02:21We look at the tariff lines.
02:22We look at what might get hit.
02:24The good news so far is that most countries have said they're not going to retaliate on this
02:28and that they would like to seek to talk to us first, find out more about the program,
02:32what they can do to meet our goals, which, as you know,
02:35we're dealing with an emergency in terms of manufacturing and our trade deficit.
02:38And so that is what most countries have chosen to do.
02:42My sense is that if there are some countries that choose to retaliate regardless of our need to address this emergency,
02:48our hope and expectation is that countries will do what they've said,
02:52which is bring down their tariffs and non-tariff barriers to provide better markets and alternative locations.
02:59Well, as I communicate some of the impacts in my state to your office,
03:04and as I know you and your team review this,
03:06I hope you will keep those considerations in mind as you develop your negotiating priorities.
03:15Yes, we certainly will and look forward to continued collaboration with you.
03:18You know, in other areas of federal policy, we have clear metrics or criteria to measure success.
03:27We do it in social policy.
03:30We do it with respect to education policy, test scores.
03:34We do it in defense policy.
03:37We try and measure readiness through various metrics.
03:41But in trade policy, especially tariffs, we seem to lack a clear set of metrics and a feedback loop.
03:52Does USTR have a formal process to evaluate whether these tariffs are actually achieving their goals,
03:59whether that's reshoring or market access or reciprocity, some metrics associated with that?
04:08I'll let you speak to that, sir.
04:10Senator, as we've stated, the underlying basis for this action is the national emergency arising from the trade deficit.
04:19President Biden left us with a historically high $1.2 trillion trade deficit,
04:23which we understand and know to be driven, at least in part, in large part, by non-reciprocity.
04:29And so when we're looking at whether that emergency is abating or being affected,
04:34is we're looking at outcomes.
04:35Certainly, if other countries are bringing in their tariffs and their non-tariff barriers, that's a good indicator.
04:42That's the right direction.
04:43We also want to make sure that the trade deficit is going in the right direction.
04:46And that means two things.
04:47It means we have better access and we can export more to these other markets.
04:50But it also means that they're not using us as a dumping ground for their overproduction or their subsidized products.
04:56And so it goes both ways.
04:57And so it's a country-by-country analysis.
05:00We're looking at it case-by-case.
05:02They come in and talk to us on a country-specific basis where we can articulate to them what their trade barriers are.
05:07Right?
05:07I've got this big book with all the trade barriers, what their non-reciprocal tariff rates are,
05:11and what we expect in terms of fair trade.
05:14Well, thank you.
05:15I'm already over time.
05:16It's amazing how quickly we go through this, which is why I really appreciate that direct line to you and your team.
05:23I should also mention that we heard from Secretary Besant to discuss tariffs the other day as well.
05:30We'll be in touch.
05:31We want to work with you on critical minerals policy, on digital trade policy, and many other areas that I know are your priorities as well,
05:40and President Trump's priorities.
05:41And thank you for your ongoing efforts to bring more clarity to the markets and to our businesses and farmers so that we know exactly what lies ahead.
05:54Senator Johnson.
05:54Thank you, Mr. Wernke, member.
05:56Mr. Ambassador, welcome.
05:58So you're hearing a fair amount of agreement from the Finance Committee here.
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