Treasury secretary defends tariff strategy as members warn of harm to small businesses

Treasury Secretary Scott Bissett told a House Appropriations subcommittee that tariffs, tax cuts and deregulation form the core of the administration's trade strategy, and that the administration expects to complete negotiations with several trading partners before year-end.

The plan is intended, Bissett said, to spur U.S. job creation and ‘‘reshape incentives for reshoring manufacturing,’’ though members pressed him on who ultimately bears the cost of tariffs and the short‑term harm to small businesses.

Members raised several concerns about the effect of shifting tariff policy on Main Street. Representative Pokan pressed the secretary with a one‑line question that drew sustained attention: ‘‘Who pays tariffs?’’ Pokan later told the hearing, ‘‘Consumers pay Trump's tariff tax,’’ describing supply‑chain disruptions, surcharges from suppliers and higher retail costs for small businesses.

Bissett defended the approach as part of a three‑leg strategy, saying, ‘‘The core components of the Trump economic agenda are trade, tax cuts, and deregulation. These are not stand alone policies. They are interlocking parts of an engine designed to drive economic growth and domestic manufacturing.’’ He added that many trading partners have approached the administration with offers and that the administration expects to announce deals soon.

Members also cited data and market signals in criticizing the policy. Ranking Member Hoyer and Representative Pokan described market volatility and falling cargo volumes and urged clearer explanations of how tariffs will protect workers without increasing costs for consumers.

The exchange underscored a central policy tension: administration officials argue tariffs can shift production and boost wages over time, while lawmakers representing small businesses and consumers said the near‑term effects are rising prices, empty ports and uncertainty for firms that cannot ‘‘play the negotiation game’’ by altering global sourcing quickly.

As the hearing closed, members asked for follow‑up briefings and more specific cost‑benefit data on proposed tariff schedules and transition assistance for small businesses.

Looking ahead, the committee said it expects additional testimony and documents that would quantify distributional impacts, including who pays surcharges and whether tariff negotiations will be paired with targeted relief for affected industries.