During a Tuesday Senate Finance hearing, Senator Reverend Warnock grilled United States Trade Representative Jamieson Greer on the economic fallout less than a week after President Trump issued sweeping tariffs
The Senator specifically spotlighted how small businesses and families will be backed into a corner and forced to pay an increased price for goods
Senator Reverend Warnock uplifted the story of a Georgia small business that may have to close as a result of the tariffs
Senators Reverend Warnock during the hearing: “This economy is not working for working families, for ordinary people. And I would submit that what the President did last week in such a reckless and sudden way is adding even more pressure on these families”
Watch video of Senator Reverend Warnock’s questioning HERE
Washington, D.C. – Yesterday, U.S. Senator Reverend Raphael Warnock (D-GA), ranking member of the Senate Finance Subcommittee on International Trade, Customs, and Global Competitiveness, grilled United States Trade Representative Jamieson Greer during a Senate Finance Committee hearing on the fallout following President Trump’s announcement of a sweeping array of tariffs last week.
“This economy is not working for working families, for ordinary people. And I would submit that what the President did last week in such a reckless and sudden way is adding even more pressure on these families,” said Senator Warnock.
During the hearing, Senator Warnock specifically highlighted how the broad and indiscriminate tariffs provide no avenue for relief for ordinary American families and small business owners, backing them into a corner and forcing them to accept higher prices. Senator Warnock uplifted the story of Georgia constituent Angela Hawkins, who is the founder of Bamblu, a small business in Atlanta that sells bamboo-based sleepwear and sheets for people with severe and sensitive skin allergies. Hawkins, who imports many of her products from overseas, is now at risk of going out of business due to the price hikes caused by the tariffs.
“Angela’s products are made overseas because you can’t find bamboo fabric made in the United States. What should Angela do? Pay the new tax? Raise her prices and risk losing customers? Or is there a process for her to apply for an exclusion from the Trump White House?” asked Senator Warnock.
“The President has said that in connection with this action, he is not going to have exclusions or exemptions beyond what is in the program already for certain products,” responded Jamieson Greer.
“She might even go out of business,” said Senator Warnock.
Last week, Senator Warnock issued a statement following President Trump’s rollout of a sweeping new set of tariffs that raise the prices of everyday goods, everything from groceries to cars. In the statement opposing the tariff announcement, Senator Warnock highlighted the potential of the cost of living to go up as a result.
Watch the Senator’s full remarks and line of questioning HERE.
See below a transcript of Senator Warnock’s remarks:
Senator Reverend Warnock (SRW): “Since President Trump announced his tariffs last week, the stock market has dropped more than 10%, we’ve talked about that. I’m more concerned about the impact on ordinary people. This is a regressive tax. It’s a tax on families, who are already dealing with increasing costs and trying to figure out how to make their lives work. I heard you say that you don’t think we’re in a trade war. I respect your expertise on trade. But tomorrow, the Trump Administration will implement its reciprocal tariffs, which means businesses and families have had less than one week to plan for the largest tax increase in more than 50 years.”
“We are escalating. We can go back and forth about whether we think it is a trade war. I’m focused on how this is impacting families. Normally, when tariffs are being discussed, businesses and industries have time to plan. The government often provides an orderly and clear process for American companies to apply for exclusions from tariffs when it is not possible for them to sell a product without importing parts or all of it because no one manufactures it here. We all know uncertainty is the worst thing for business. I’m hearing this from farmers, from folks in the manufacturing sector. I hope we can provide some certainty.”
“What should a multinational retailer do about their products made only overseas, or that contain parts only made overseas? We are seeing this in our automotive sector in Georgia. Should they just raise their prices on families to account for the new tax, or is there a process for that company to reach out to the White House for an exclusion?”
United States Trade Representative Jamieson Greer (JG): “Senator Warnock, the section 232 on autos is a Commerce Department action. One thing they have done is they have said that they would be willing to give some kind of credit for U.S. Content in parts and components and they can approach the Commerce Department about this. It’s not a decision I’m making, but I know this is one alternative.”
“I am mindful, when I hear this, obviously, we are sensitive to these dynamics. It reminds me that we lost 5 million manufacturing jobs over the last 20 years. That’s part of the reason why we are in the situation now. We just have to bring those back. It’s important to bring those back now before the situation gets worse.”
SRW: “The question is: what do they do? Do they pass that price onto consumers?”
JG: “What we’ve seen Ford and GM, for example, have announced that they are giving discounts. That was the big news last week, last Thursday. They would be giving discounts going forward. These companies often are going figure out how they locate costs among themselves and it rarely gets down to consumers.”
SRW: “The company might figure it out.”
JG: “They can approach the Commerce Department.”
SRW: “Let me go smaller, last week, my office met with Angela Hawkins, she’s the founder of Bamblu, a small business in Atlanta that sells bamboo-based sleepwear and sheets particularly for people with severe and sensitive skin allergies like her husband. Angela’s products are made overseas because you can’t find bamboo fabric made in the United States. What should Angela do? Pay the new tax? Raise her prices and risk losing customers? Or is there a process for her to apply for an exclusion from the Trump White House?”
JG: “The President has said that in connection with this action, he is not going to have exclusions or exemptions beyond what is in the program already for certain products.”
SRW: “So she will just have to figure it out.”
JG: “She will have to work with her business partners and figure out outsourcing…”
SRW: “She’ll have to either raise prices and risk customers [is] basically the answer, right? Because she can’t get bamboo here.”
JG: “It will depend on the tariff rate. Every country has a different rate. Some are lower than others.”
SRW: “So she might even go out of business.”
“Let’s go even smaller. Early estimates show that President Trump’s tariffs will increase the costs of goods by $3,800 for the average American household. Many critical baby [gates] are produced abroad or have foreign-made components. I went through this not long ago as a parent of young children. For an expecting family in Augusta, Georgia, who may see a 50% price increase for that stroller or car seat, what is the process for that family to apply for a White House exclusion? I guess if the business owner can’t get one, they can’t get one either, correct?”
JG: “There’s not an exclusion process, that’s right.”
SRW: “So they would just bear the cost?”
JG: “I think the studies you’re talking about, the economists got it wrong in Trump one [first Trump Administration], they said that there would be inflation because of tariffs, and it when down. When I hear them saying the same thing, I don’t trust what they are saying. The fact of history shows that it’s not a one-to-one.”
“The highest inflation we ever saw was under [President] Biden for housing and education and health care, and all of these things. I don’t know where everybody was then, when that was skyrocketing.”
SRW: “What if their child is potassium deficient? And now bananas are more expensive. Last I checked, we don’t have the climate to grow bananas in the United States. Who should that family reach out to the White House for an exclusion for that price hike on those bananas?”
JG: “There’s not an exclusion process. I think we have waited too long with the status quo. I know people want the status quo…”
SRW: “Here, you and I agree. Nobody wants the status quo. This economy is not working for working families, for ordinary people. And I would submit that what the President did last week in such a reckless and sudden way is adding even more pressure on these families.”
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