Howard Lutnick says tariffs will push nations to "respect" the us and warns allies won’t be spared
Howard Lutnick, US president Donald Trump’s nominee for US Commerce Secretary, defended tariffs in his confirmation hearing, emphasizing their role in national security, trade negotiations, and US manufacturing.
According to BNN Bloomberg, he described the tariffs as an effective tool to force other countries to “respect” the US.
Speaking before the Senate Committee on Commerce, Science, and Transportation, Lutnick dismissed concerns that tariffs would drive inflation higher as “nonsense,” though he acknowledged some prices might increase.
He stated that while China should face the highest duties, US allies would not be exempt. “I think Chinese tariffs should be the highest, our adversaries should be the highest,” he said.
He also criticized European trade policies, saying, “The fact that we Americans cannot sell an American car in Europe is just wrong and it needs to be fixed.”
Lutnick argued that trade partners have taken advantage of the US, stating, “They are taking advantage of us, they are disrespecting us, and I would like to see that end.”
The hearing covered several topics under the Commerce Department’s purview, including trade, semiconductor manufacturing, and export controls.
Senators scrutinized Lutnick’s financial holdings and his firm’s ties to Tether Holdings Ltd., a stablecoin company linked to illicit activity. He pledged to divest his holdings if confirmed.
Lutnick differentiated between tariff uses, noting that some could be avoided if other countries met US demands. He pointed to the proposed 25 percent tariffs on Canada and Mexico, stating that these were tied to migration and fentanyl issues at their borders.
He indicated that the tariffs could be withdrawn if Canada and Mexico took action.
“If we are your biggest trading partner, show us the respect, shut your border,” he said. “And as far as I know, they are acting swiftly, and if they execute it, there will be no tariff. And if they don’t, then there will be.”
Lutnick also supported a long-term approach that resets trade ties and brings manufacturing back to the US. He endorsed “across-the-board” tariffs on a “country-by-country” basis, arguing, “We are treated horribly by the global trading environment.”
Trump has proposed a range of tariffs, though their implementation remains uncertain. These include measures targeting China, Mexico, and Canada, as well as tariffs on key industries such as semiconductors, pharmaceuticals, steel, aluminum, and copper.
Trump has also considered a universal tariff of up to 20 percent on all imports.
Lutnick singled out Canada’s dairy sector as an issue, telling Senator Tammy Baldwin, “Canada, as we spoke about, treats our dairy farmers horribly. That’s got to end.”
When asked about export controls on semiconductors and China’s AI advancements, Lutnick emphasized the need to back restrictions with tariffs.
He criticized the US approach as ineffective, stating, “What this showed is that our export controls, not backed by tariffs, are like a whack-a-mole model.” He also cast doubt on China’s compliance with trade rules, adding, “I do not believe that DeepSeek was done all above board. That’s nonsense.”
Lutnick’s nomination appears likely to pass the Senate.
Vice President JD Vance introduced him, calling him “a good dude” who could address wage stagnation.