Senators Tell Nominee Tariffs Are Raising Costs for Farmers, Consumers; Nominee Defends Policy Objectives
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Multiple senators warned that the administration's tariff policy is creating market uncertainty and raising prices for agricultural exporters and consumers. The nominee said tariffs serve three goals — revenue, correcting inequities and a negotiating tool — and said reciprocal outcomes could lower tariffs if concessions are extracted.
WASHINGTON — Senators from states that rely on trade pressed Mike Faulkinder during his confirmation hearing about the administration's tariff policy, warning it is creating uncertainty for exporters and raising costs for consumers.
Senator Maria Cantwell told the nominee that apples, potatoes and wheat represent more than $3 billion in agricultural exports for her state and said the day-to-day unpredictability of tariff policy is harming producers, exporters and supply chains. Senator Cantwell asked Faulkinder whether the administration understood the level of damage being done by frequent policy reversals.
Faulkinder said the administration has three objectives for tariffs: generate revenue, correct long-standing inequities such as unfair subsidies or currency manipulation, and use tariffs as a negotiating lever to obtain concessions from trading partners. He said tariffs can be used to secure better market access and that, in some cases, reciprocal tariff changes could lead other nations to lower their rates.
Senator Maggie Hassan and Senator Patty Murray raised specific concerns about gasoline, electricity and home-heating costs for border and northern states; Senator Welch of Vermont asked whether a 25% tariff could translate into higher gasoline and heating costs for residents. Faulkinder said some of the price effect could be absorbed by exchange-rate movements, some absorbed by foreign producers and some could appear as a one-time price adjustment if tariffs remained in place permanently. He added that the administration would remove tariffs if trading partners provided the concessions the president seeks.
Cantwell said the uncertainty itself — frequent changes in tariff lists and exemptions — was particularly damaging to exporters and that the committee should work with the administration to reduce unintended harm. Faulkinder said he understood concerns and described tariffs as one tool among many to advance U.S. economic and security interests.
The exchanges underscored tensions between an administration asserting leverage through tariffs and senators representing trade-dependent states seeking predictability for local producers and consumers.