Republican senators desperate for an off-ramp to Trump’s escalating trade war want to know Donald Trump’s endgame now — even as GOP leaders pledge to give the president “space” to let his market-tanking tariff gamble play out.
Expect it all to play out in front of Senate Finance, where Trump’s top trade representative Jamieson Greer testifies starting at 10 a.m. It’s the first of two annual Hill hearings this week on the president’s trade policies that will now serve to show the scope of the fallout from Trump’s blanket-tariff strategy.
Republicans are eager to hear more about potential trade deals that could help calm the markets. “The faster we can get some negotiations done and resolved, the better,” committee member Sen. James Lankford told POLITICO on Monday.
Indeed, Greer plans to argue that Trump’s tariff strategy is “already bearing fruit,” according to a copy of his prepared remarks that we reviewed. “Nearly 50 countries have approached me to discuss the president’s new policy and explore how to achieve reciprocity,” he plans to say.
But Trump is still playing coy about whether he intends to negotiate, even after Treasury Secretary Scott Bessent’s weekend warning to the president that he needs to focus more on cutting deals or risk a further economic meltdown. Trump on Monday threatened to slap an additional 50 percent tariff on China, disparaged the idea of a trade deal with the European Union and did not announce a tariff agreement with Israel during a closely watched meeting with PM Benjamin Netanyahu.
Turning his attention to the Hill, he mocked his trade-policy critics as “Weak and Stupid” while pledging to veto bipartisan legislation from GOP Sen. Chuck Grassley — and backed by a half-dozen other Republicans — that would return some control over enacting tariffs to Congress. GOP Rep. Don Bacon is pursuing similar legislation in the House. Neither are likely to see floor action.
The salvos appeared to have their intended effect: Outright breaks with Trump’s brash trade policy remain limited inside the GOP. Greer has been a key part of the pacification effort — privately briefing Hill Republicans over the past few weeks in an attempt to assuage nervous free-market-supporting members.
Greer can certainly expect a grilling from Senate Democrats. Ranking member Ron Wyden plans to slam the administration for offering “no clear message” about how Trump chose his tariff targets and how long he plans to keep them up, according to prepared remarks POLITICO reviewed. Sen. Bernie Sanders’ message: The blanket tariffs are “illegal and another step toward authoritarianism.”
What else we’re watching:
– Budget business: GOP leaders are planning to bring the Senate-approved budget resolution to the Rules Committee today — but there are still plenty of hurdles to leap before a planned vote on Wednesday. Several hard-liners still want steeper spending cuts, even after Johnson stopped by the House Freedom Caucus on Monday night.
– Trump’s military moves: Bipartisan concerns about reports that the Trump administration is considering major changes to military posture in Europe are likely to take center stage when House Armed Services hears today from the commander of U.S. forces in Europe, Gen. Christopher Cavoli. Chair Mike Rogers plans to raise his objections to a reduced U.S. role in Europe.
– SNAP takes the spotlight: House Agriculture will convene this morning to discuss “the power of work” related to the Supplemental Nutrition Assistance Program — the first public meeting this Congress about House Republicans’ plan to cut agriculture spending.
Jordain Carney, Daniel Desrochers, Joe Gould, Benjamin Guggenheim, Ari Hawkins, Connor O’Brien, Jennifer Scholtes and Katherine Tully-McManus contributed to this report.
