[Page H1280]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         UNDERSTANDING TARIFFS

  (Ms. Johnson of Texas was recognized to address the House for 5 
minutes.)
  Ms. JOHNSON of Texas. Mr. Speaker, I recognize that most Americans 
are not economists, trade experts, or well versed in the intricacies of 
tax policy. If you will, I want to take this opportunity to sort of 
``Schoolhouse Rock'' tariffs. Let's talk about what they are, how they 
work, and how they impact Americans and their families.
  Tariffs are taxes on imported goods, plain and simple. When the 
government slaps a tariff on a product, it makes the product more 
expensive to buy from other countries.
  Take your sneakers. Most sneakers are made with rubber, synthetic 
fabrics, and leather, stuff that gets imported from China and other 
places. Let's say the government puts a tariff on those materials. That 
is an extra included tax on materials that make up the sneakers.
  Now these products become more expensive to make, and the way that 
companies make up for that is passing that cost on to the consumer. A 
pair of sneakers that cost $30 might now cost $50 after tariffs are 
imposed. You now have to work more to get more money and then pay more 
for the same exact pair of sneakers.
  The idea of tariffs is to protect American businesses and jobs. The 
reality, though, is, as you can see with the sneaker example, it often 
backfires. Other countries hit back with their own tariffs, hurting 
American manufacturers and workers.
  Now, are tariffs always bad? The answer is no. When used correctly, 
tariffs can be a powerful tool. They can protect American jobs, boost 
key industries, and stop countries like China from flooding our market 
with cheap, low-quality goods.
  When a country imposes tariffs strategically on industries we need to 
rebuild, like steel and manufacturing and technology, we can give 
American businesses the breathing room to compete and grow. When 
foreign countries play dirty with unfair trade practices, tariffs can 
be a productive way to respond to that.
  Here is the key: Tariffs have to be smart. When used correctly, 
tariffs can defend American industry. When used incorrectly, though, 
they are just another tax on working people. Right now, the Trump 
administration is using tariffs in the wrong way, and their actions are 
causing costs to skyrocket for families in Texas and all American 
families.
  To be clear, Trump's tariffs on Canada and Mexico are nothing but a 
tax on American businesses and consumers. They are two of our biggest 
trading partners. For example, Mexico is Texas' largest trading 
partner, accounting for one-third of our State's exports. In 2023, 
trade between Texas and Mexico totaled more than $272 billion. We trade 
so many products with our neighbors to the south that families in Texas 
use every day, like tomatoes, greens, avocados, car parts, electronics, 
plastics, and the list goes on. With Canada, Texas buys steel and 
lumber to build homes to ensure families have a roof over their heads.
  All of these products will have higher costs, and the only ones who 
will pay more are the families and businesses that buy them. Instead of 
strengthening those relationships with our neighbors, Trump's tariffs 
are making everything more expensive for us.
  What do we get in return? Absolutely nothing. American companies 
didn't suddenly stop buying from Canada or Mexico. They just have to 
pay more to do it. Meanwhile, those countries have hit back with their 
own tariffs, hurting Americans across the board. Instead of using 
tariffs for smart trade policy, Trump is using them as a political 
stunt that punishes the very people it claims to help.

                              {time}  1030

  Madam Speaker, these tariffs are self-inflicted wounds on the 
American economy. We see this every day in the stock market with the 
market value falling by trillions of dollars over the past few weeks. 
Those in their twenties, thirties, and forties have lost tons of money 
in their 401(k).
  I should also mention something else because I know there is 
something more sinister going on. Right now, we have Elon Musk in the 
White House. He has been our president since January 20, calling all 
the shots and using President Trump as his puppet.
  These tariffs will benefit his businesses because they are being 
imposed on Elon's competition. This is a clear conflict of interest. It 
is wrong, and it is a display of the grift and the greed that the Trump 
administration has ushered into this White House.
  None of this is about helping American families. None of this is 
about lowering costs. This is about Trump and Musk settling scores, 
causing chaos, and making sure they line their pockets on the backs of 
Americans and the middle class.
  Madam Speaker, we need to end these reckless tariffs and get back to 
lowering costs for the people we serve.

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