00:00Ms. Dean.
00:04Thank you, Chairman Rogers.
00:05Thank you, Ranking Member Meng.
00:06Thank you, Ranking Member DeLauro.
00:09And thank you to you, Secretary Lutnick.
00:11Thanks for being here today.
00:12I want to pick up on what Mr. Morelli was talking about, and I'll use the word stability.
00:18And I think you know this from your many years in business.
00:22And that's what I thought about as I was preparing for today.
00:25The importance of stability, or as he said, predictability.
00:29Strategy is the foundation of economic growth.
00:31I think you've lived it.
00:34Businesses need clear and predictable rules to plan and to invest for the future.
00:38Given this administration's claim of being pro-business and pro-growth, I am so baffled
00:44by the discussions around trade deficits, and the President's belief around trade deficits,
00:49and the President's beliefs around tariffs, and the chaotic tariff policy.
00:55They're on, they're off.
00:57Many of the tariffs are punishing, creating a level of instability and uncertainty in our
01:02economy that we haven't seen since COVID.
01:05I hear the same thing over and over from constituents, from small businesses, from bankers
01:11in my area.
01:12They can't figure out how to plan, how to lend.
01:16Businesses can't figure out how to expand, how to grow, whether to hire, whether to not
01:20hire.
01:22And I'd heard just literally this morning from a very large American retailer.
01:27First word out of the woman's mouth was uncertainty.
01:30And the last thing she said to me was uncertainty, all surrounding tariffs.
01:37The lack of predictability.
01:38I also serve on the Foreign Affairs Committee.
01:41Was recently in UK and Denmark.
01:43Met with the American Chamber in both countries.
01:47Confused, uncertain, they can't figure it out, what in God's name is going on.
01:52We cannot plan to grow businesses.
01:55We cannot plan to grow growth and jobs.
01:59So I am baffled, absolutely baffled by this administration's talk around trade deficits
02:05and tariffs.
02:06I fear the administration lacks a basic understanding of what a trade deficit is.
02:11I think many economists take issue with equating a country's trade deficit with any one country
02:17and its economic well-being.
02:19Some economists actually view a trade deficit as a sign of a country's economic health because
02:25it means we're purchasing more.
02:27For me, I have a pretty large trade deficit with my local grocer or my hairdresser.
02:34It's a good thing.
02:35It means I have money enough to get my hair done once in a while and to keep food on the
02:38table.
02:39It tells nothing about my overall financial position.
02:44Do you know when this country actually had a trade surplus, Secretary?
02:50The President likes to speak about before…
03:01No, historically.
03:02When did we have a trade surplus?
03:04I'm not talking about the President.
03:05Historically.
03:06I think early, about a hundred years ago.
03:12It was the Great Depression.
03:14It was a sign of what was going on.
03:17It was during the Great Depression.
03:19That's a direction none of us wants to go.
03:22Tariffs.
03:23It's 90 days.
03:25We're going to have 90 deals in 90 days, then there's a 90-day pause.
03:29Many of these tariffs, as I say, punishing.
03:32Tariffs on things that make no sense whatsoever.
03:36Where are we going to go with the remaining deals?
03:38I know of one deal that has been apparently resolved with the United Kingdom.
03:44We've got 89 more deals to do in just a few more days.
03:48Where are we on those deals?
03:50We are in the midst of negotiations with dozens and dozens of countries.
03:56We could sign deals, but they're only going to get better as we negotiate them.
04:01That's just simply not true.
04:03Because as I told you, the American…
04:04Actually, I promise you it's true, because I'm doing it.
04:07So I promise you it is true, and I'm here testifying in front of you, and I promise
04:10you it's true.
04:11And Mr. Trump promised to bring down the cost of goods day one.
04:14And what he has done through his trade deficit fixation and his tariff chaos has nakedly
04:22increased the cost of goods.
04:24The estimates are that for consumers in my area, suburban Philadelphia, $2,000 at least
04:29a year increases on goods.
04:32I'll give you an example of one.
04:35Bananas.
04:38What's the tariff on bananas?
04:39Americans, by the way, love bananas.
04:41We buy billions of them a year.
04:43I love bananas.
04:44What's the tariff on bananas?
04:48The tariff on bananas would be representative of the countries that produce them.
04:52And what's that tariff?
04:54Generally 10 percent.
04:55Correct.
04:5610 percent.
04:57Walmart has already increased the cost of bananas by 8 percent.
05:00But as countries do deals with us, that will go to zero.
05:05As countries do deals with us, that will go to zero.
05:07But the cost is on the American consumer now and on the businesses with the confusion now.
05:11Mr. Secretary, I believe you know better.
05:15I believe you recognize that a trade deficit is not something to fear.
05:20I believe you know that predictability, stability is essential for businesses.
05:25I wish you would show that truth to this administration.
05:30And I yield back.
05:31The time of the gentlelady has expired.
05:33Would you mind, Mr. Chairman, if I make one quick comment to the end?
05:36Would that be okay?
05:37I'm sorry?
05:38Would you mind if I make one quick comment to the representative?
05:41Sure.
05:42Please.
05:43There's no uncertainty.
05:44If you build in America and you produce your product in America, there will be no tariff.
05:48We can't produce bananas in America.
05:49So the concept of building in America and paying no tariff is very, very clear.
05:54We cannot build bananas in America.
05:57Time of the gentlelady has expired.
05:59Time of the gentlelady has expired.
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