Senate Finance Committee members on March 22, 2018, expressed concerns to USTR Robert Lighthizer about the effects of the Administration's tariffs on their constituent businesses, particularly agricultural interests.

Lighthizer went a step further than his testimony at Ways and Means yesterday, saying the President has indeed decided to "pause" the imposition of steel and aluminum import tariffs with respect to the European Union, Argentina, and Australia. He said yesterday the move was under consideration, and today he added Brazil to the list of exempted countries. Canada and Mexico were exempted in the March 8 proclamation in light of NAFTA renegotiations, and Korea is exempted in light of similar discussions.

Subsequent to the hearing, the President signed a memo to impose a reported roughly $50 billion in tariffs against China in response to the theft of intellectual property, and the USTR released findings of an investigation leading to the tariffs.

During the hearing, Chairman Orrin Hatch (R-UT) repeated his objections to tariffs, Senator Chuck Grassley (R-IA) asked if the USTR is aware of the extent to which agriculture producers will be harmed by China tariffs, and Senator Ben Cardin (D-MD) expressed concern about a constituent business facing retaliation by other countries in response to steel and aluminum tariffs.

Senator Michael Bennet (D-CO) asserted that the agriculture industry is the most vulnerable to retaliation, and pushed back against Lighthizer's position that the Administration is sympathetic to that argument but unwilling to give up their right to action. Bennet said farmers and ranchers want the right to export goods. "They don't need sympathy, they need the Administration to act responsibly," he said.

Senator Maria Cantwell (D-WA) also expressed an interest in steps to keep agricultural interests from suffering from retaliation resulting from the "trade war" the President is initiating. Lighthizer refused the premise that President Trump is trying to start a trade war, and Cantwell responded that she was citing the President's tweets. Senator John Thune (R-SD) expressed concern about South Dakota grain exports.

Senator Claire McCaskill (D-MO) said agriculture will be a big loser under the Administration's trade agenda, given markets in Canada and Mexico and, for soybeans, China. She asked whether Boeing is still going to be able to compete with its foreign competitors "with what you all are doing." Regarding metals tariffs, McCaskill cited a constituent business that relies on Japanese steel imports because the material is specialized, not because it is more affordable.

Opening statements and testimony from the hearing are available here.

The USTR report on the investigation leading to China tariffs may be found here.

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