Trump's commerce nominee defends tariffs, arguing they will restore US manufacturing and strengthen leverage
Howard Lutnick, US President Donald Trump’s nominee for Commerce Secretary, defended tariffs during his confirmation hearing, signalling the administration’s readiness to impose levies on both allies and adversaries, according to BNN Bloomberg.
Speaking before the Senate Committee on Commerce, Science, and Transportation, Lutnick outlined how tariffs could enhance national security, restore domestic manufacturing, and reinforce US supply chains.
He also described them as a strategic tool to pressure foreign nations into showing the US greater “respect.”
Lutnick dismissed concerns that tariffs would significantly raise inflation, calling such fears “nonsense,” though he acknowledged that some prices could increase.
When asked whether US tariff policies would differentiate between allies and competitors, he stated that while China should face the highest duties, friendly nations would not be spared.
“I think Chinese tariffs should be the highest, our adversaries should be the highest,” Lutnick said. “But the fact that we Americans cannot sell an American car in Europe is just wrong and it needs to be fixed.”
He added that some countries “are taking advantage of us, they are disrespecting us, and I would like to see that end.”
Lutnick received support from both Republicans and some Democrats, making his confirmation likely. US Vice President JD Vance introduced him, calling him “a good dude” who could help reverse stagnating wages.
During the hearing, senators questioned Lutnick on his financial holdings and Cantor Fitzgerald LP’s connection to Tether Holdings Ltd., a stablecoin firm linked to illicit activities.
Lutnick pledged to divest from his financial interests.
The committee also discussed the Commerce Department’s oversight responsibilities, including wireless telecommunications, weather forecasting, fisheries management, and international trade promotion.
Export controls and semiconductor manufacturing emerged as key topics, with Lutnick emphasizing that tariffs should complement US restrictions on China’s tech sector.
Citing the release of China-based DeepSeek’s open-source AI model, he criticized current enforcement measures.
“What this showed is that our export controls, not backed by tariffs, are like a whack-a-mole model,” he said. “We’ve got to find a way to back our export controls with tariff model. I do not believe that DeepSeek was done all above board. That’s nonsense.”
Lutnick differentiated between short-term and long-term tariff strategies, noting that some duties could be avoided if trading partners complied with US demands.
He pointed to Trump’s recent threat of 25 percent tariffs on Canada and Mexico, set to take effect on February 1, and linked the move to border security and fentanyl-related concerns.
“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.”
Beyond short-term negotiations, Lutnick supported sweeping tariff reforms aimed at reshaping global trade relationships and driving manufacturing back to the US. He endorsed “across-the-board” tariffs on a “country-by-country” basis, arguing that current trade policies disadvantage American producers.
“We are treated horribly by the global trading environment,” he said, echoing Trump’s long-standing complaints about international trade.
Lutnick also singled out Canada’s dairy system as an example of unfair treatment, responding to a question from Senator Tammy Baldwin, a Democrat from Wisconsin. “Canada, as we spoke about, treats our dairy farmers horribly,” he said. “That’s got to end.”
Lutnick’s influence on Trump’s trade policies remains uncertain, as he will be competing with other administration officials, including China hawk Peter Navarro and Treasury Secretary Scott Bessent.
Trump has ordered multiple trade and tariff reviews, which Lutnick described as part of a broader White House strategy.
These studies, expected by April 1, will determine how and when tariffs are implemented.
Trump has proposed three broad categories of tariffs but has not specified their scope. In addition to potential duties on Canada, Mexico, and China, the administration has floated sector-specific tariffs on semiconductors, pharmaceuticals, steel, aluminum, and copper.
Trump has also suggested imposing a universal tariff of up to 20 percent on all imports, though details remain unclear.
