01:13They buy $90 billion from China, then they mark it up and send it to us.
01:17So you wouldn't accept that deal?
01:22No, it's a terrible deal.
01:23We're the one with money.
01:24We're the one with the store.
01:25Of course they want it to take down.
01:26What's the purpose of reciprocity, then?
01:29Is reciprocity not one of your goals?
01:32Are you telling the President that we shouldn't seek reciprocity?
01:36If that's what you're telling him, why are you trying to do these trade deals?
01:40What do we want?
01:41We want to encourage Vietnam to produce products.
01:45They're great at producing.
01:46But I want to get back to reciprocity.
01:47You just said you don't believe, you don't accept reciprocity as a goal.
01:52What are you negotiating in these trade deals?
01:54Why would we open our bank account and their bank account when ours is 10 times bigger?
01:57Why are you negotiating trade deals?
01:59You're trying to get other countries to lower their tariffs and trade barriers in return for us lowering ours.
02:06That's true for the things that they'll take from us.
02:10That's called reciprocity.
02:12Of course.
02:13So are you or are you not seeking reciprocity in these trade deals?
02:18We are thinking, we are absolutely seeking reciprocity with respect to things that can be reciprocal.
02:24But you just said that if a country came to you and offered you the ultimate reciprocity,
02:34no tariffs, no trade barriers, in return for us doing the same, you would reject that.
02:40Of course, because they buy from China and send it to us.
02:43Don't you agree with me?
02:44Suppose they said we won't buy from China.
02:46Now we're talking.
02:47Now we're talking.
02:48If it was Vietnam.
02:50Would you accept that deal?
02:52We would consider it.
02:53For what things?
02:55For products?
02:55What would you want to change?
02:57Well, there are certain products we want to reassure.
03:00We don't want other people making them.
03:02We want to make pharmaceuticals here.
03:05We need to protect ourselves for certain things.
03:06Let me ask you this because I'm going to run out of time.
03:10Are trade deficits, are you advising the president that trade deficits are always bad?
03:17In every situation?
03:20No.
03:21Okay.
03:24When are trade deficits good?
03:27Trade deficits, for instance, let's say there was a company that had the cure for cancer.
03:32Let's call it cancer cure.
03:34And we were buying it and it was located in another country.
03:37We would obviously have a trade deficit with them because they have the only one of it.
03:44An example, our technology companies, our great technology companies, we're the only ones with it.
03:50The trade deficit is okay if they're products we really need.
03:54If they're the only ones with it and we can't do it, then of course it's fine.
04:00But if we can do it, then we darn well better think about whether we're supposed to do it and whether we want to do it.
04:07And if it's in our interest as a country to do it.
04:09Here's where I'm getting at.
04:10I've heard you say that trade, well, strike that.
04:15I want to get, I'm running out of time.
04:17I want to come back to another subject.
04:22Tell me your understanding of the Trade Expansion Act.
04:29I don't have a really good understanding of the term.
04:32I may know the act, but I may not know its title.
04:34You know, you're not familiar with the Trade Expansion Act of 1962 that gives the president almost unlimited authority to impose tariffs so long as you conduct an investigation.
04:46You don't know about that?
04:47Oh, my 232s, of course I do.
04:50Okay.
04:50Sorry, I just didn't know the title of the plan, but of course I know.
04:53Why didn't you advise the White House instead of proceeding under other statutes?
05:00Why didn't you advise the White House to proceed under the Trade Expansion Act?
05:08The president chose IEPA because he could do it swiftly and he could do it sweeping in order to address the underlying problems that had created the $1.2 trillion trade deficit that was haunting the United States of America.
05:24Have you read the opinion in VOS selections, VUS?
05:29I have.
05:30What role does the major questions doctrine play in that decision?
05:35I am not a lawyer, so I can't speak to it with that kind of precision.
05:38That's a litigation that's under current investigation.
05:42Are you familiar with the major questions doctrine?
05:46Not offhand, but I did, of course, read the decision.
05:49Well, about three quarters of the opinion is on the major questions doctrine.
05:54Again, I tend to not know the title.
05:57I know that the topic and the details of it, but I tend not to focus on titles.
06:03Sorry.
06:03I'm way over.
06:05Thank you for your indulgence, Mr. Chairman.
06:08Senator Kennedy, thank you.
06:09Senator Shaheen.
06:10Thank you, Mr. Chairman.
06:11And thank you, Mr. Secretary, for being here today.
