US commerce secretary pick favors sweeping tariffs, hawkish China stance

Yahoo

29-01-2025

Donald Trump's commerce secretary nominee said Wednesday that he favors "across-the-board" tariffs and a country-based approach rather than targeting products, signaling a hawkish China stance as he addressed US lawmakers on the president's punishing trade agenda.
"We can use tariffs to create reciprocity, fairness and respect," Wall Street billionaire Howard Lutnick told lawmakers at a confirmation hearing, denying such levies would cause broad inflation in the United States.
Lutnick's appearance comes as Washington threatens sweeping duties on imports from allies and adversaries alike -- with levies on major trading partners Canada and Mexico potentially unveiled this weekend.
On Wednesday, Lutnick said the president's pledges were aimed at getting both major US trading partners to do more on illegal migration and fentanyl.
In announcing his nomination last year, Trump said Lutnick would lead the world's biggest economy's tariff and trade agenda, with additional direct responsibility for the US Trade Representative's office.
Asked about the impact of tariffs on prices, Lutnick said "a particular product's price may go up" but added that "it is nonsense" that they would cause widespread inflation.
Lutnick vowed, however, to work to understand the impact of retaliatory tariffs on US agriculture and manufacturing.
- 'Strong' export curbs -
If confirmed, Lutnick will helm a department overseeing export controls to competitors like China as well, aimed at ensuring the United States' lead in sensitive technology with military uses.
On rivalry with China, Lutnick said: "Let them compete, but stop using our tools to compete with us. I'm going to be very strong on that."
He separately stressed the importance of American-driven leadership in artificial intelligence.
Asked about the CHIPS and Science Act, a major law passed during former president Joe Biden's term aimed at strengthening the US semiconductor industry, Lutnick called it "an excellent downpayment."
But he added that "we need to review them and get it right."
In introductory remarks, Vice President JD Vance said Lutnick would help convince businesses that America is thriving, bringing US commerce "back on track."
The commerce department nominee was co-chair of Trump's 2024 transition team, identifying new hires for the president-elect's administration.
He serves as chief executive of financial services firm Cantor Fitzgerald.
In the past, he has criticized electric vehicles and blamed China for being the source of the deadly drug fentanyl coming into the United States.
He has also lamented previously the loss of manufacturing jobs in the world's biggest economy, and offshoring to China.
On Wednesday, he vowed in opening remarks that he would help make the US government "more responsive" and stressed the need for healthy businesses of all sizes to drive the economy.
The Commerce Department under Biden ramped up export controls on critical technologies like quantum computing and semiconductor manufacturing goods, taking aim at access by adversaries like Beijing.
Trump's administration could harden this stance.
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