By David Lawder and Andrea Shalal

WASHINGTON (Reuters) – Jamieson Greer, President Donald Trump’s nominee for U.S. trade representative, stated on Thursday that further study is needed on a universal tariff to evaluate its effects on rising U.S. trade deficits. He emphasized that countries must reduce import barriers to retain access to the U.S. market.

Greer informed a U.S. Senate confirmation hearing that the examination of Trump’s proposal for a 10% universal tariff would be included in an inauguration day trade memo, which mandates a report by April 1.

He noted the importance of assessing the growing U.S. goods trade deficit, which recently hit a record $1.2 trillion in 2024 due to increased imports. Greer articulated, “Part of the question is how large of a trade deficit do we want, because the trade deficit represents, in large part, manufacturing jobs that have gone overseas.”

He asserted that a universal tariff should be thoroughly assessed to determine if it could help reverse the trade deficit trend and the offshoring of jobs. As a Washington trade lawyer and former chief of staff to former USTR Robert Lighthizer, Greer shares similar concerns over trade deficits and equitable treatment from U.S. partners.

Greer highlighted the alarming growth in trade deficits with certain nations, particularly Vietnam, which saw a significant increase to $123.5 billion due to companies moving production away from China to evade tariffs imposed during Trump’s first term.

If confirmed, Greer promised to quickly evaluate the unfair trading practices of countries with large trade imbalances with the U.S., cautioning them that maintaining market access requires improved reciprocity.

IT’S ABOUT FENTANYL

When asked about Trump’s tariff threats against Canada and Mexico, as well as new tariffs on Chinese imports, Greer explained that these actions aim to negotiate agreements to combat the opioid crisis involving fentanyl and illegal migration. He emphasized the urgency of addressing fentanyl, which can devastate communities, clarifying, “We can’t have that, and we need to come to an agreement on that.”

CHINA REVIEW

Discussing U.S.-China trade relations, Greer maintained the need for balance, which necessitates lowering Chinese tariffs and addressing non-tariff barriers. Following Trump’s trade memo, he will review China’s compliance with the 2020 “Phase 1” trade deal that had paused a two-year trade conflict. Greer stated that resolving disputes and enforcing agreements will be key objectives moving forward.

In addition to the recently imposed tariffs, Trump has vowed to enact duties up to 60% on Chinese imports. Greer believes that the 2020 U.S.-Mexico-Canada Agreement (USMCA) needs scrutiny to ensure that foreign nations aren’t abusing it for duty-free access, as its renegotiation is set for 2026. He called for accountability from Mexico and Canada regarding their USMCA market access obligations.

AGRICULTURAL ACCESS

Responding to inquiries regarding the expansion of agricultural trade, which suffered during previous trade conflicts, Greer expressed desire to increase international market access for competitive U.S. agriculture. He specifically named India and Turkey as target markets for U.S. farming products.

In his opening remarks, Greer pledged to advocate for a pragmatic U.S. trade policy aiming to rebuild domestic manufacturing and stabilize supply chains. He warned, “If the United States does not have a robust manufacturing base and innovation economy, it will have little in the way of hard power to deter conflict and protect Americans.”