WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) delivered the following opening statement at a hearing with U.S. Trade Representative Jamieson Greer.

As prepared for delivery.

“Ambassador Greer – Welcome back to the Ways and Means Committee.

“Since last April’s Liberation Day, the sky has not fallen on the economy as the so-called experts and naysayers predicted. The Trump Administration’s America First trade agenda is opening new markets to American workers, manufacturers, and farmers, eliminating long-standing tariffs on American products, and securing commitments of over $1 trillion in investments in our country. Since returning to office, President Trump’s administration has signed more than 18 new trade agreements and frameworks that are supporting American jobs, strengthening our industrial base, and securing our supply chains. 

“Here are just a few examples of the U.S. wins for manufacturers and American workers:

• The European Union will eliminate tariffs on U.S. vehicles from 10 percent to zero.
• Cambodia eliminated all tariffs on imports from the United States, including going from 15 percent to zero on a wide range of U.S.-made machinery and equipment.
• Taiwan will eliminate tariffs on most vehicles, down from a previous range of 15 percent to 25 percent.
• Malaysia provided preferential tariff rates to most U.S. products, including chemicals, electrical equipment, and metals.

“I represent one of the most ag-heavy districts in both Missouri and the entire United States. Under President Trump, the wins for America’s farmers and ranchers have been nothing short of historic: 

• Australia agreed to accept U.S. beef for the first time in two decades. 
• Cambodia has dropped its tariffs on American farm products to zero from an average of 12 percent and even higher rates on certain products like 35 percent on certain processed food and beverages. 
• Japan will buy $8 billion in U.S. agricultural goods, including buying 75 percent more U.S. rice. 
• Taiwan will eliminate tariffs on 94 percent of our agricultural products. 
• The United Kingdom eliminated its 20 percent tariff on U.S. beef and opened the door to 1.4 billion liters of ethanol. 
• Argentina agreed to eliminate tariffs on some U.S. dairy products that faced 28 percent tariffs.
• Ecuador committed to provide preferential treatment for more than 90 percent of our agricultural products, including tariff elimination for soybeans, fresh and processed fruit, alcoholic beverages, and tree and ground nuts, as well as for certain dairy, beef, pork, and poultry products.
• India reduced tariffs on American bourbon from 150 percent to 100 percent last year, and committed to further reduce or eliminate tariffs on all American wine and spirits.
  

“The result: a projected 43 percent reduction in the agriculture trade deficit that was inherited from the Biden Administration. 

“Last year, exports rose to a record $3.4 trillion dollars. Our goods trade deficit with China dropped by 32 percent to its lowest level since 2004, decreasing U.S. reliance on a foreign adversary. China’s share of all U.S. imports dramatically fell from 13.4 to 9.3 percent in a single year. 

“President Trump’s tariff policies provided the leverage needed to achieve these wins that no other President has been able to accomplish. 

“One area of concern, however, is in American manufacturing. President Trump’s America First agenda is all about bringing jobs and investment back to the United States. But we cannot accomplish this goal if our trade policies actually incentivize companies to locate their facilities in Mexico and Canada, rather than the United States. 

“I’ve had CEOs of several large businesses tell me in recent weeks that it would be better to locate major manufacturing facilities in Mexico because under USMCA rules, they are able to import many more of their component parts tariff-free, then bring the finished product into the United States tariff-free as well. In this respect, Mexico and Canada have obtained a cost advantage, and it must be addressed to help American workers. 

“I support the USMCA, but President Trump is correct that we cannot just rubber stamp the status quo. As the July 1 Joint Review deadline nears, we must review the improvements that are needed to continue the agreement’s success and eliminate loopholes like this. We have also seen with USMCA how benefits can fail to materialize for American producers when trade agreements are not robustly enforced. Mexico should have never blocked imports of U.S. corn, which was not resolved until shortly before President Trump’s swearing-in. And American dairy farmers still have not resolved their dispute over access to the Canadian market. 

“This committee looks forward to working with you, Ambassador Greer, and your team throughout the Joint Review process.

“Our country cannot go back to business as usual and reverse the historic gains won by President Trump’s trade policies – even after the Supreme Court’s recent ruling. I support the use of Section 122 tariffs while the Administration continues Section 301 and Section 232 investigations. 

“One of the few smart things President Biden did was keep many of President Trump’s Section 232 and Section 301 tariffs in place because even he knew they were in America’s best interests. 

“Looking ahead, this Administration must be vigilant and focus on enforcing the commitments trading partners made in these new trade agreements. Americans must experience the full benefits of these agreements. 

“Another priority is the African Growth and Opportunity Act. This committee proved that bipartisan support for AGOA remains strong when we secured renewal for another year, but a long-term reauthorization that advances America’s strategic interests is a must. AGOA strengthens our critical supply chains and helps us counter the harmful influence of nations like China and Russia in one of the fastest growing parts of the world. 

“You and I have spoken many times and agree that AGOA needs reforms. As you’ve said, we must set high standards for our trading partners and ensure market access for American producers. I expect USTR to engage with this committee to find a path forward for long term renewal. 

“President Trump set the stage for a roaring economy that helps workers achieve the American Dream with new reciprocal trade agreements, pro-growth tax relief in the Working Families Tax Cuts, and slashing regulations. We must continue tearing down trade barriers that hurt American producers and workers, and hold our trading partners accountable.”