03.06.25

Cantwell Challenges Deputy Treasury Nom on Trump’s Tariff Chaos: “People Can't Even Follow What His Game Plan Is.”

In Senate Finance Committee, Cantwell highlights whiplash for manufacturers, growers, & consumers due to an administration that changes its tariff policies on a near-daily basis; In WA state, 2 out of every 5 jobs are tied to trade-related industries

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), senior member of the Senate Finance Committee and ranking member of the Senate Committee on Commerce, Science, and Transportation, pressed Michael Faulkender – President Donald Trump’s pick to serve as Deputy Treasury Secretary – on the whiplash caused by the administration’s ever-changing tariff policies.

On Jan. 31 -- citing punishment for failing to crack down on fentanyl trafficking -- the Trump administration announced plans to impose a 25% tax on many goods imported into the U.S. from Canada and Mexico and a 10% tax on goods imported from China, then abruptly postponed those tariffs. Last month, he doubled down, announcing an additional 25% tax on all steel and aluminum imports.

At 12:01 a.m. ET Tuesday, President Trump’s long-promised 25% tariffs on goods from Mexico and Canada and 10% tariff increase on goods from China took effect, causing stock prices in the United States to plummet. Then, yesterday, he announced that automobiles from Canada and Mexico would be exempt from his tariffs for one month. Just this morning, he announced that he would suspend the tariffs for some products from Mexico. Then, this afternoon, he announced he was suspending most new tariffs on products from both Mexico and Canada until April 2.

“I feel like we're almost just having chaos about what are we doing. One day it's about fentanyl, one day it's about emergency services, one day we'll give these exemptions, one day we'll go back to this -- and so I'm trying to get your views,” Sen. Cantwell said. “Apples, potatoes, and wheat are the largest agriculture exports in our state. They represent over $3 billion worth of agriculture products around the world. And so I'm trying to understand if you understand the uncertainty that's being created right now with these tariffs. If you get that it's hard for businesses to even follow what is the predictability and certainty about what the President is even doing or proposing, because it's changing every day.”

Faulkender responded: “I think when you look at the President's approach on Canada and Mexico, it was very much to get them to focus on the fentanyl crisis, on the fact that 100,000 Americans are dying of fentanyl.”

Sen. Cantwell: “Do you really think that Canada was our fentanyl problem?”

Faulkender: “I have not had access to the data on that. My understanding is that some of it does come in from Canada. I grant you that more of it comes from Mexico than Canada.”

Sen. Cantwell: “A lot more.”

She continued: “Does [Trump] understand the level of chaos that is happening now? Because people can't even follow what his game plan is […] But I really, really hope that he understands how much damage is being done every day to the agricultural sector. And it's not that people, rich people, won't buy farmland -- they will buy farmland. It’s just that we’ll have a lot less farmers.”

In Washington state, two out of every five jobs are tied to trade and trade-related industries. More information on how President Trump’s tariffs on goods from Mexico, Canada, and China will affect consumers and businesses in the State of Washington can be found HERE. Nationwide:

  • A 25% tariff on Canada and Mexico would add an estimated $144 billion a year to the cost of manufacturing in the United States.
  • Tariffs on Canada and Mexico could increase U.S. car prices by as much as $12,000.
  • According to the Yale Budget Lab, Trump’s proposed tariffs would result in the highest U.S. effective tariff rate in more than 80 years, and depending on the level of retaliation by other trading partners, will result in increased costs of between $1,600 and $2,000 per household. According to their analysis, food, clothing, cars, and electronics will all see above-average price increases.

Sen. Cantwell has remained a steadfast supporter of increased trade to grow the economy and keep prices in check in the State of Washington and nationwide.

Sen. Cantwell was the leading voice in negotiations to end India’s 20% retaliatory tariff on American apples, which was imposed in response to tariffs on steel and aluminum and devastated Washington state’s apple exports. India had once been the second-largest export market for American apples, but after President Trump imposed tariffs on steel and aluminum in his first term, India imposed retaliatory tariffs in response and U.S. apple exports plummeted. 

The impact on Washington apple growers was severe: Apple exports from the state dropped from $120 million in 2017 to less than $1 million by 2023.  In September 2023, following several years of Sen. Cantwell’s advocacy, India ended its retaliatory tariffs on apples and pulse crops which was welcome news to the state’s more than 1,400 apple growers and the 68,000-plus workers they support.

Video of Sen. Cantwell’s Q&A in the Senate Finance Committee today is HERE; audio is HERE; and a transcript is HERE.

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