Sánchez Opening Statement at Trade Subcommittee Hearing
(As prepared for delivery)
Thank you, Mr. Chairman. It’s a pleasure to be here with you for the first time as Ranking Member.
And thank you to the witnesses. This committee appreciates your time as we try to make sense of this administration’s trade policies. Though it seems to boil down to threats, a lot of tariffs, and an insatiable hunger for revenue to pay for huge tax cuts for the rich.
At the top, I want to put to rest the myth that foreign countries pay for tariffs. Let’s set the record straight: American families pay for tariffs.
For example, the President’s new tariffs on goods like pharmaceuticals and lumber will increase housing and drug costs. The President shouldn’t burden working families by misusing tariffs to deal with every foreign policy disagreement.
Let me be clear: tariffs are an important tool in trade policy. They can help level the playing field for domestic industries, but they cannot be our WHOLE trade policy.
While I have heard a lot about tariffs from the President, I have not heard how they will be paired with investments to onshore manufacturing and create jobs. If we care about workers who have been displaced by trade, where is the funding for TAA? Or are these tariffs just an excuse to fund new tax cuts for Elon Musk?
Today’s hearing ostensibly is about enforcement. The President talks a big game about enforcement, but you can’t just SAY you want enforcement. You have to FUND it! Every day we hear about thousands of federal workers being illegally fired.
How do we enforce trade laws if we’ve lost our enforcement capacity? And what about the businesses and workers who depend on those agencies to assess dumping and countervailing duties; to protect IPR rights; to hold countries to their environmental commitments; and to combat forced labor.
The President’s first trade action — the America First Trade Policy Memo — proposed reviews due April 1st that may guide new enforcement actions. However, the President’s reckless approach meant he couldn’t even stick to his own plan and wait for the review.
Instead, he immediately threatened massive tariffs on Canada, Mexico, and Colombia. In each case, the President’s use of economic coercion against our allies hasn’t been to solve trade issues, but to further his inhumane, anti-immigrant agenda.
Meanwhile, he imposed only a 10% tariff on China – far less than the 60% he promised in his campaign. He also walked back his promise to close the de minimis loophole for China. What changed? China certainly hasn’t stopped exporting fentanyl. Or stealing intellectual property.
This begs the question: is he flip-flopping on his policies because his billionaire friends have investments with China?
Mr. Chairman, I agree our trade policy needs a serious review. For too long, our policies assumed a rising tide would lift all boats. However, too many working families are not staying afloat. China has fundamentally changed the trading system and many of our trade policies have hurt American workers and industry.
But the answer is not to build walls around our country. We must invest in our communities and protect industries from predatory trade practices, like China’s. This will require us to work with our allies, not against them. This takes thoughtfulness, not the chaos and threats we have seen from this President.
This committee cannot stand by as the Executive Branch runs roughshod over the Constitution and raises prices on Americans. I hope this hearing marks a renewed mission for this body to craft thoughtful trade policy and reclaim our Constitutional prerogatives.
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