WASHINGTON — With a fresh round of U.S. tariffs set to hit the world Wednesday, America's top trade official faced pushback Tuesday from lawmakers alarmed by the fallout from President Donald Trump's trade war.
United States Trade Representative Jamieson Greer maintained that the global tariffs are getting results as he fielded pointed questions from members of the Senate Finance Committee about Trump's "reciprocal" tariffs.
"The president's strategy is already bearing fruit," Greer said.
Markets have been in a tailspin since Trump last week announced a 10 per cent baseline tariff on imports from most countries and higher duties on dozens of nations.
Those higher tariffs include a 20 per cent levy on imports from the European Union, a 25 per cent tariff on South Korea and a 32 per cent tariff on Taiwan.
"The tariffs are on and the money is pouring in at a level that we've never seen before," Trump said at a Tuesday event where he signed an executive order to boost the coal industry. "It’s going to be great for us. It’s going to be great for other countries."
While Canada isn't being targeted by Trump's global tariffs, the country is still being hit by U.S. automobile, steel and aluminum tariffs and still faces the ongoing threat of economywide fentanyl-related tariffs.
In early March, Trump imposed — and then partially paused — 25 per cent across-the-board tariffs on Canada and Mexico, with a lower 10 per cent levy on energy and potash. Goods imported under the Canada-U.S.-Mexico Agreement on trade, known as CUSMA, do not face tariffs. Imports that fall outside the continental trade pact are hit with the 25 per cent tariff.
Canada will be adding to its retaliatory measures in response to the automobile duties Wednesday by implementing similar tariffs on vehicles imported from the United States. Unlike the American duties, Canada's tariffs will not target auto parts or Mexican vehicles and components.
Ottawa also announced a special exemption from previous tariff countermeasures for residents of Campobello Island in New Brunswick, which is only accessible year-round by road through the United States.
"Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the U.S. on Canadian products," Finance Minister François-Philippe Champagne said in a news release. "The government is firmly committed to getting these U.S. tariffs removed as soon as possible, and will protect Canada's workers, businesses, economy and industry."
Many U.S. senators said Tuesday that the trade war with Canada is hurting their states' economies. They said small businesses are laying off employees and the tourism industries in border states that rely on Canadian travellers are being decimated.
"Minnesotans are freaked out," said Democrat Sen. Tina Smith.
Trump's massive tariff agenda continues to sow market confusion and senators repeatedly asked Greer to explain what the president is trying to achieve.
Some members of the Trump administration have said the duties will be in place for the long term, in order to raise revenues and return manufacturing to the U.S. Others have said the tariffs are a negotiating tactic meant to land trade deals.
Trump posted on social media that he is open to negotiations, adding he had a call with the acting president of South Korea.
"We have the confines and probability of a great DEAL for both countries. Their top TEAM is on a plane heading to the U.S., and things are looking good," Trump posted Tuesday. "We are likewise dealing with many other countries, all of whom want to make a deal with the United States."
White House Press Secretary Karoline Leavitt said Tuesday that Trump's message is clear. "To countries around the world, bring us your best offers and he will listen," she said.
She said deals will only be made if they benefit American workers and decrease trade deficits.
Experts have said Trump's tariffs are undermining CUSMA, the continental trade pact negotiated during his first administration. Prime Minister Mark Carney, who spoke with Trump in March, has said the two leaders agreed to begin negotiations on a new economic and security relationship immediately after the Canadian election on April 28.
Greer said the economy is in for a "drastic, overdue change" that may be "challenging at times."
Greer said he's been contacted by about 50 counties looking to avoid the tariffs. He ruled out exemptions for products or companies thrown into turmoil by tariffs.
Big swings rocked Wall Street again Tuesday as the global tariffs threatened to crack Republican solidarity.
"It seems like we’ve decided to begin a trade war on all fronts," Republican Sen. Thom Tillis of North Carolina told the Senate hearing.
"I wish you well,″ Tillis said to Greer. "But I am skeptical."
This report by The Canadian Press was first published April 8, 2025.
Kelly Geraldine Malone, The Canadian Press
