WASHINGTON — Lawmakers on both sides of the political aisle tried to secure assurances from the country’s top trade official that automotive supply chains will not collapse and the United States-Mexico-Canada Agreement will remain strong as President Donald Trump’s widespread tariffs take hold.
Jamieson Greer, who heads the Office of the U.S. Trade Representative, has spent much of the past two days on Capitol Hill defending Trump’s tariff policy from a barrage of criticism coming almost exclusively from Democrats.
But concerns about tariff-induced disruptions to supply chains crossing the country’s Northern and Southern borders were raised by both parties at a House Ways and Means Committee hearing on Wednesday.
U.S. Rep. Danny Davis, D-Ill., whose district covers parts of Chicago, represents companies in the vehicle supply industry that assemble and produce cars for the automotive industry.
“The tariff impact on the automotive industry is massive, and may result in shutting down businesses within the automotive supply chains, which will harm the U.S. economy as a whole,” Davis told Greer.
“It would take years to adjust production and supply chains back to the U.S. In the meantime the auto sector will be hit by multiple layers of tariffs that will soak up any free cash that could be used for the very investments in the U.S. that the administration is seeking.
“Is the administration planning any relief for auto parts suppliers and the auto industry, and what other help can the government provide to these suppliers due to the most recent changes in tariffs?”
Greer did not reveal any plans for economic relief but instead pointed out that auto part imports that comply with the USMCA continue to come across the Mexican and Canadian borders duty-free, an exclusion that was included in Trump’s “Liberation Day” reciprocal tariffs announcement last week.
He also cited United Auto Workers’ support for the reciprocal tariffs as evidence that auto manufacturing and its supply chains will be strengthened and not harmed.
“It’s really critical that we protect our auto industry, and the autoworkers understand that,” Greer said. “We’ve accounted [in the USMCA] for parts that have content from the U.S., Canada and Mexico, and we have to be very deliberate about doing this to save this industry.”
U.S. Rep. Carol Miller, R-W.Va., said the USMCA has been a major factor in growing and sustaining manufacturing in her district. While the agreement is not perfect, Miller said a review of the pact, due in 2026, can help improve it.
“What commitments can you make today regarding the USMCA review? Specifically how will you use this opportunity to advance President Trump’s goals of promoting domestic manufacturing?” Miller asked.
Greer responded that he has been meeting with his counterparts in Mexico and Canada, and plans “at some point” to initiate the review process as required by statute.
He also emphasized keeping countries that are not part of the USMCA from circumventing the agreement by using Canada and Mexico as export platforms.
“USMCA should be an agreement that promotes manufacturing in America, and that we can rely on our partners to the north and south if needed,” Greer said.
“But it can’t be a situation where countries like China or Vietnam can just come in, build a factory in Mexico, assemble [products] with parts from there, and send it across the border and get the benefit of an agreement where they’ve taken no obligation. I want to make sure it’s an agreement that helps America first.”
