On December 9, 2025, the U.S. Senate Appropriations Subcommittee reviewed USTR activities and FY2026 funding priorities, with Ambassador Jamieson Greer as the witness. The hearing emphasized the use of reciprocal tariffs as an enforcement tool aimed at addressing a reported $1.2 trillion trade deficit.

While the memo is written through an agriculture lens, the themes apply broadly across supply chains:

• More tariffs used as leverage (and more frequently)
• More scrutiny on where goods “really” come from (rules of origin)
• More tension between trade goals and national security considerations

A major takeaway is the push to expand USTR’s operational capacity. The memo notes that earlier in 2025, President Trump requested USTR’s budget increase to $95 million for FY2026 (including $23 million for the Trade Enforcement Trust Fund).

Ambassador Greer tied the request to a “flatline” in funding alongside an “unprecedented workload,” and flagged a need for 19 new career (non-political) positions, including roles dedicated to enforcement monitoring.

What that means for shippers: more monitoring, faster escalation, and less tolerance for “good enough” documentation, especially in classifications, valuation, and origin substantiation.

China purchase commitments: big numbers, big signals

In the Q&A, Ambassador Greer provided specifics on a recent deal with China tied to agricultural purchases:

• 12 million metric tons of U.S. soybeans through the current growing season (ending Feb/March)
• 25 million metric tons annually for the next two years

He also stated China was “on track” with approximately 3 million metric tons purchased to date.

Why supply chain leaders should care (even outside ag):

• When purchase commitments become part of trade enforcement strategy, commodity flows, and the transportation capacity behind them, can shift quickly.
• This can impact equipment availability, port velocity, and inland capacity during peak seasons.

Diversification + new market access: “nearshoring” with tariff advantages

Ambassador Greer emphasized diversifying agricultural exports to reduce reliance on China, citing tariff reductions in Vietnam and Cambodia and a permanent agricultural agreement with Israel.

He also described a Western Hemisphere “nearshoring” approach, where tariffs are lowest for regional partners to encourage supply chain relocation.

The memo cites examples of recent agreements with El Salvador and Guatemala prioritizing use of U.S. cotton in textile supply chains.

Operational takeaway: If tariff structures are being used to “pull” supply chains into preferred regions, origin strategy becomes a boardroom topic, not just a customs topic.

Reciprocal tariffs: the framework you need to model now

One of the most actionable items in the memo is the reciprocal tariff structure (noted as modified on August 1):

• Surplus countries: 10% tariff rate
• Small deficit countries: 15% tariff rate
• Large offenders: significantly higher rates (especially in parts of Asia)

Greer also defended temporary tariffs on goods like coffee and bananas as leverage, imposed to accelerate deals and removed after agreements were reached.

What to do with this?

Build a tariff exposure map by lane and supplier country

Identify “surplus,” “small deficit,” and “large offender” country risk buckets based on your sourcing footprint (your broker can help translate policy into SKU-level exposure).

Pressure-test landed cost under multiple rate scenarios

Don’t just model “+10%”, run scenarios for higher-rate shocks on critical components.

Strengthen SKU classification + product descriptions

Tariff programs often turn small classification errors into big duty deltas.

USMCA: rules of origin enforcement is heading into a critical window

With the USMCA review approaching in July 2026, Greer signaled a hardline approach to enforcement, specifically citing Mexico’s compliance and Canada’s dairy quotas.

He also indicated interest in revisiting Rules of Origin to ensure benefits flow to true North American content rather than third-party pass-throughs.

Most importantly for operators: the memo notes he explicitly stated tariffs are the primary tool for enforcement when partners fail to comply.

What USMCA-focused shippers should do now:

• Audit supplier origin files (BOMs, affidavits, certificates, transformation rules)
• Validate “country of origin” logic in your ERP/WMS/TMS data flows (bad master data becomes compliance exposure fast)
• Prepare for more questions at the border, especially if your goods could be interpreted as “pass-through” content.

“Managed trade” and national security: watch the policy crosswinds

The hearing also surfaced tension between trade and national security, including criticism around relaxing the “affiliates rule” and allowing high-end chip exports (the memo cites Nvidia as an example) to China and the UAE.

Greer defended the approach as “managed trade” tied to ensuring continued flow of rare earth minerals from China, and acknowledged the U.S. is currently “over a barrel” regarding rare earths.

Why it matters operationally: when strategic materials, export controls, and tariff policy collide, rules and enforcement priorities can shift quickly—sometimes by product category, not just by country.

How GLC helps you stay ahead

When policy shifts turn into real border outcomes, the winners are the teams with clean data, strong documentation, and fast execution.

GLC supports shippers with:

• Customs brokerage guidance built around visibility and compliant filings
• End-to-end logistics support across freight forwarding, warehousing, and distribution
• A practical, “no surprises” approach to helping you model risk and keep freight moving when trade rules tighten.