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U.S. Rep. Gary Palmer, R-Hoover, talks with Perryn Carroll of the Jimmie Hale Mission at Palmer's "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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Close to 200 people attended U.S. Rep. Gary Palmer's "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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U.S. Rep. Gary Palmer, R-Hoover, gives his 2025 "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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Hoover Mayor Frank Brocato welcomes people during U.S. Rep. Gary Palmer's "Washington update" at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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U.S. Rep. Gary Palmer, R-Hoover, speaks with a constituent at his 2025 "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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Anna Catherine Roberson, the government and communications manager for Alabama Power Co., introduces U.S. Rep. Gary Palmer, R-Hoover, at his "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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Derrick Ellis and Cheryl Williams talk with U.S. Rep. Gary Palmer, R-Hoover, during Palmer's "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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An audience member asks a question of U.S. Rep. Gary Palmer, R-Hoover, at Palmer's "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
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U.S. Rep. Gary Palmer, R-Hoover, poses for a photo with a group at his "Washington update" to six chambers of commerce at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover, Alabama, on Monday, April 21, 2025.
U.S. Rep. Gary Palmer on Monday said he is not a big fan of tariffs, but he told representatives from six Birmingham-area chambers of commerce that he understands why President Trump is raising tariffs on other countries.
From 1946 to 1992, the United States spent $8 trillion to $9 trillion defending Europe from the Soviet Union, not including money spent on rebuilding countries after wars, Palmer told the business groups during a “Washington update” at the Hyatt Regency Birmingham — The Wynfrey Hotel in Hoover.
Trump believes other countries have been taking advantage of the United States, and the president believes it’s time they take on more financial responsibilities, Palmer said.
Trump also has claimed the tariffs are a tool to get Canada, Mexico and China to crack down on the flow of illegal drugs like fentanyl into the United States.
Palmer said he thinks countries can get through these trade wars and the uncertainties that they have brought into the economy. “I think there’s some deals being worked out right now because this is hurting everybody,” he said.
It’s important for people to realize that the United States is not in competition with Europe or Canada, Palmer said. “The West is in competition with China.”
Chinese companies have a huge advantage over U.S. companies because the Chinese government is subsidizing its companies, Palmer said. It’s time for the Western countries to realize that “we’re in this together” and re-evaluate tax and regulatory structures to make Western companies more competitive in the global marketplace, he said.
It’s also important for people to realize that the trade issues are not just economic concerns; they’re also security concerns, Palmer said.
The United States has put itself in a position of being too dependent on China and other countries for critical minerals and other earth elements, Palmer said. The United States depends on China and other countries for minerals and elements to make everything from phones to washing machines, microwaves, pharmaceuticals and even fighter planes and artillery, he said.
A year ago, China cut off U.S. access to three rare earth elements, then four or five more elements two weeks ago and now all of them, Palmer said.
The United States has some of these elements, but you have to have plants to process and refine the elements and minerals, he said. There are no such refineries in the entire Western hemisphere, he said. There are only nine such refineries — eight in China and one in Malaysia, Palmer said.
If the United States got into a major conflict with China, the United States would be in a bad position to keep its military operational and keep its economy going, Palmer said. The United States needs to partner with other Western countries to combat this without being overly confrontational with China, he said.
When asked if he would have implemented the tariffs Trump is levying, Palmer said “I would have done something.”
Without getting into details, he said the United States can’t continue on the path it has been traveling.
“This has been brewing for a long time, and past administrations haven’t had the will to confront it,” he said.
DEREGULATION
One of the answers is deregulation, Palmer said. Some of the companies that were looking to establish rare earth processing centers or refineries in the United States left because it takes too long to get permits in the United States, he said. One company that processes antimony — used in ammunition — finally left to go to Mexico after having a permit challenged for 24 years, he said.
During Trump’s first term, Trump was able to get rid of $200 billion in annual regulatory costs by by getting rid of regulations that contradicted one another, Palmer said. Under President Biden, regulatory costs increased by $2.12 trillion annually, which is close to $12,000 per household, Palmer said.
The government through regulation effectively was imposing a hidden tax almost equal to what Americans pay in personal income taxes, he said. He doesn’t advocate getting rid of all regulations but does advocate making “sensible” reductions in regulations to bring some stability to the marketplace, he said.
One big change he advocates is passing a law to reassert Congress’ legislative authority and prevent excessive overreach by the executive branch. Such a law, called the Regulations from the Executive In Need of Scrutiny Act (or REINS Act), would replace the Congressional Review Act.
The CRA requires that Congress consider any federal regulation that has a positive or negative economic impact of $100 million or more. If Congress passes a resolution of disapproval of the regulation within 60 legislative days and the president signs it, the regulation becomes null and void, Palmer said. However, that law frequently is ineffective if the president and a majority of Congress are from different parties, he said.
The REINS Act would give Congress 70 days to consider such a regulation but would require Congress to pass legislation affirming the regulation for the regulation to become effective, Palmer said. The REINS Act would put the power of law making back in the hands of the legislative branch, he said.
In the past, the U.S. House has approved the REINS Act but it frequently is not approved by the Senate, Palmer said. When the Senate did approve it under the Biden administration, Biden vetoed the act, he said. Palmer said he is trying to get it passed again this year.
COMMENTS ON DOGE
Palmer also commented on work being done by the new Department of Government Efficiency.
While some opponents claim DOGE is cutting Social Security and Medicaid and eliminating Medicare, it’s not true, Palmer said.
“We’re not cutting Social Security for anyone unless you’re dead,” Palmer said. “If you’re dead and still getting a check from Social Security, we’ve got a problem.”
DOGE has determined the government has been doling out $240 billion to $250 billion in improper payments to people each year, Palmer said. A good portion of that is due to antiquated data systems that need to be modernized, he said.
DOGE’s work is really just a modernization of the federal government and an attempt to right-size the federal government and get its financial house in order, Palmer said. The national debt is so high now that the interest the government is paying on that debt is almost as much as the government pays for the military, he said.
DOGE also uncovered about $20 billion worth of federal disbursements that the Biden administration gave out to eight organizations in Biden’s final four weeks in office, Palmer said. Palmer, who chairs a subcommittee on oversight and investigations for the Congressional Committee on Energy and Commerce, said his committee is trying to find out exactly how that money was authorized and how it was spent.
“There’s got to be more transparency and accountability,” he said.
Monday’s “Washington update” luncheon was sponsored by the Homewood, Hoover, Montevallo, Mountain Brook, North Jefferson and Shelby County chambers of commerce.
