'He's Causing Economic Chaos': Elizabeth Warren Lambasts Trump Tariff Policies For 'Causing Economic Chaos'

Forbes Breaking News

8 months ago

At today's Senate Banking Committee hearing, Sen. Elizabeth Warren (D-MA) slammed President Trump's tariff policies.

Transcript

00:00You are next.

00:01Thank you, Mr. Chairman.

00:02I disagree with the President's disastrous approach to worldwide tariffs.

00:07He's causing economic chaos and uncertainty that are hurting workers and working families

00:14and small businesses all around this country.

00:17If he continues his giant game of on-again, off-again tariffs, he's going to push our

00:22country into a recession.

00:26Tariff reform is badly needed.

00:29The mantra embraced for decades by many Democrats and Republicans alike that free trade with

00:36China would somehow work to our favor was flatly wrong.

00:40Those policies, combined with China's aggressive trade practices, have cost millions of Americans

00:46their jobs.

00:48They have also undercut our economic and national security.

00:52Beijing is increasingly using its significant leverage over critical supply chains to exert

00:59influence around the world while the United States stands by.

01:04During the Biden administration, the PRC restricted the export of several critical minerals, gallium,

01:10germanium, graphite, antimony, right?

01:14In response to U.S. export controls.

01:18Now, during the Trump administration, the PRC has cut off access to several more critical minerals.

01:25Mr. Doshi, you worked on China policy at the National Security Council.

01:30And you have seen the importance of addressing China's leverage over critical supply change.

01:37How important is the Defense Production Act to reassuring those critical chains and competing with China?

01:45Well, thank you, Ranking Member Warren.

01:47It is essential.

01:48Thirty years ago, when China joined the World Trade Organization, the United States was about

01:5330 percent of global manufacturing value-add.

01:55Today, we're 17 percent.

01:56And in five years, we might be 11 percent.

01:58That's not a great situation.

02:00As you mentioned in your opening, the Defense Production Act is critical to expanding American industrial capacity.

02:05If we want to reduce dependence on Chinese critical minerals, we need DPA.

02:09If we want to produce cruise missiles or ships, we need DPA.

02:12If we want to surge production after a supply chain attack, we need DPA as well.

02:16I think it's essential right now with China throttling American industry by going after rare earths and rare earth magnets in the trade war.

02:23I think President Trump needs DPA in order to be able to effectively negotiate with the PRC.

02:27Yeah.

02:28I agree with you on this.

02:29I don't support the President's trade war in the way that he's conducting it.

02:33But I do think that the President needs tools like the DPA to be able to stand up to Xi Jinping.

02:42We also need a strong DPA to protect our medical supply chains and protect us from persistent shortages of many generic drugs.

02:51We can't defend our country if we can't provide life-saving drugs to our service members and

02:57to our citizens.

02:58According to the Defense Logistics Agency, 27% of the DOD's pharmaceutical supply chains are

03:05considered very high risk.

03:09That's one in every four.

03:11Because they are dependent on China or just an unknown source that nobody can figure out.

03:17The other 27%, that puts us well over half, is at high risk because they are dependent on non-Trade Agreement Act compliant countries.

03:28Mr. Brown, we have become dangerously dependent on foreign countries for pharmaceuticals, including

03:35active pharmaceutical ingredients.

03:38How should we be using the DPA to onshore drug manufacturing, to address shortages, and to build resilience?

03:47It's a great question, Senator, and this has been an area of bipartisan consensus for many years.

03:55Recently, we've been using Title III funding from the DPA to help onshore some of this critical capacity.

04:01The current administration through HHS is having a hearing and a roundtable this June with industry

04:08to further address this issue.

04:10And you can imagine how much worse it could get if we were facing a mass casualty scenario

04:15here in the homeland.

04:17And to be clear, this is not just a foreign sourcing issue.

04:21We've had shortages of IV fluid following two different hurricanes.

04:25First with Hurricane Maria, and then again with Hurricane Haleen affecting manufacturing supply chains here in the United States.

04:33And so the DPA is important, not just for on-shoring, but enhancing the resilience of the supply chain here and abroad.

04:40Yeah, I appreciate that.

04:41And I appreciate your expanding out our vision of what we're talking about here.

04:46You know, this risk is not theoretical.

04:48It can cost American lives.

04:50I've introduced multiple bills to try to reinvigorate drug manufacturing here at home.

04:57It is clear that we need to use every tool at our disposal to create resilience in these supply chains.

05:04I want to thank all of our witnesses for being here and helping us understand the importance of using the DPA to protect national defense.

'He's Causing Economic Chaos': Elizabeth Warren Lambasts Trump Tariff Policies For 'Causing Economic Chaos'

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