Howard Lutnick, Trump Commerce secretary pick, says it’s ‘nonsense’ that tariffs cause inflation
Howard Lutnick, President Donald Trump’s nominee to lead the Commerce Department, made a bold statement during a confirmation hearing with senators, dismissing the argument that tariffs cause inflation as “nonsense.” Lutnick pointed out that countries with high tariffs like India and China have not experienced inflation, debunking the belief that levies lead to widespread price hikes.
While Lutnick acknowledged that the price of specific products may increase due to tariffs, he emphasized that this does not necessarily translate to overall inflation. He argued in favor of implementing “across-the-board” tariffs on a “country-by-country” basis rather than targeting specific sectors or products. Lutnick stressed the need for fair treatment in the global trading environment, advocating for the use of tariffs to create reciprocity and ensure that American industries are not unfairly disadvantaged.
Drawing on his close relationship with President Trump, Lutnick echoed the administration’s stance on simplifying tariffs and promoting reciprocity in trade relations. He criticized the complex exclusion process for steel and aluminum tariffs, highlighting the need for a more streamlined approach to trade policy. Trump’s recent executive order directing a review of U.S. trade policy and tariff models, particularly focusing on China, underscores the administration’s commitment to addressing trade imbalances.
Lutnick also called out Europe for imposing unfair restrictions on American agricultural products, citing examples of discriminatory policies that hinder U.S. farmers and ranchers from accessing foreign markets. He emphasized the importance of correcting these disparities and ensuring a level playing field for American exporters.
In response to escalating trade tensions, Lutnick supported imposing higher tariffs on China and emphasized the need for reciprocity in trade relationships. He echoed Trump’s tough stance on trade with the European Union, advocating for tariffs as a means to achieve fairness in trade dealings.
As the U.S. prepares to implement tariffs on imports from Canada, Mexico, and Europe, Lutnick’s nomination as Commerce Secretary signals a commitment to addressing trade imbalances and promoting American economic interests on the global stage. With a focus on simplifying tariffs, promoting reciprocity, and advocating for fair treatment in trade relations, Lutnick’s confirmation could pave the way for a more assertive approach to U.S. trade policy.
