Ted Cruz Warns: Long-Term Tariffs Would 'Function As A De Facto Tax Increase' On Small Biz, Middle Class

Forbes Breaking News

At Thursday's Senate Commerce Committee hearing, Sen. Ted Cruz (R-TX) spoke about the goals of Trump Commerce Department nominees should they be confirmed, and warned about the impact of long-term tariffs.

Transcript

00:00Science and Transportation will come to order. Today we will consider the

00:03nomination of Paul DeBar to serve as Deputy Secretary of Commerce. Mr. DeBar

00:08congratulations on your nomination. We look forward to hearing about your

00:12professional experience and your vision for supporting and complementing

00:16Secretary Lutnik's leadership of the department. As Deputy Secretary, Mr.

00:22Mr. DeBar will serve as the second-in-command at the department. He will

00:26oversee daily operations and help tackle a wide array of issues, from fixing

00:31Biden's failed BEAD program, which connected not a single American to high

00:37speed internet, to countering climate alarmism at NOAA. These are not small

00:43tasks. Mr. DeBar has an impressive background. After graduating from the

00:49United States Naval Academy, he served as a nuclear submarine officer for six years.

00:55He then earned an MBA from Columbia University, before going to work for J.P.

01:00Morgan for nearly two decades. There, he oversaw more than $400 billion in energy

01:07investments spanning oil, gas, nuclear, solar, wind, and geothermal energy. During the

01:15first Trump administration, Mr. DeBar was unanimously confirmed as the fourth

01:21undersecretary for science at the Department of Energy. In that role, he managed a

01:27workforce of tens of thousands of personnel across more than 100 sites with a

01:32$14.5 billion budget. He oversaw the majority of U.S. national laboratories at a

01:39time when they faced a growing threat of Chinese espionage. He implemented the

01:45national quantum initiative act and sought to spur the development of next

01:49generation energy storage technologies. Following his tenure at the Department of

01:55Energy, Mr. DeBar co-founded Bohr Quantum Technology, a pioneering cybersecurity

02:01company developing quantum networking systems. If confirmed, he'll draw on his

02:08technical expertise and entrepreneurial experience to tackle complex challenges at the

02:13intersection of science, government, and industry. I will note that he has the

02:19explicit support of five former cabinet secretaries from both Republican and

02:25Democratic administrations. This nomination comes as the Department of

02:30Commerce works to preserve access to the Gulf for oil and gas exploration, expand

02:36commercial access to mid-band spectrum, and maintain U.S. leadership in artificial

02:42intelligence, quantum, commercial space, and advanced manufacturing. It also comes

02:49amid a public trade battle. President Trump is rightfully standing up to China and

02:54working to reshore industries vital to our national security. But we should be

02:59mindful that long-term tariffs on manufacturing inputs and other goods would

03:05function as a de facto tax increase on small businesses and the American middle class. My

03:11hope is that the Commerce Department leadership will work alongside the

03:17President to steer a course that addresses our supply chain vulnerabilities and

03:21restores dignity to the American worker, but aims for freer and fairer trade with

03:28our allies, not simply protectionism. There are two paths before us, one that uses tariffs

03:36strategically to secure better trade deals, incentivizing our trading partners to lower the

03:42tariffs they charge to American goods and services in exchange for lowering our own tariffs. The other

03:49path is a path that locks in place high tariffs indefinitely. I very much hope we are on the former

03:57path and not the latter. Just this week, Secretary Lutnik has touted an international trade deal now in its

04:04final stages. The President has also signed a proclamation offering relief to the auto industry following the

04:11results of a Commerce Department section 232 investigation into the import of

04:16automobiles and automobile parts. These are signals the administration wants to use

04:21its trade authorities to secure better deals for the American people. I am

04:26confident that Mr. DeBar, an experienced dealmaker himself, can assist in this effort. I hope

04:33he will outline for us today the path that he plans to take under the direction of the

04:38the President.

Category

Transcript

Recommended