Washington Confirms Howard Lutnick as Commerce Secretary amid Looming US Tariffs
Concurrent with the looming threat of US trade tariffs, the Senate in Washington has confirmed Wall Street entrepreneur and China critic Howard Lutnick as the new Secretary of Commerce. The congressional chamber voted overwhelmingly in favor of the 63-year-old nominee of President Donald Trump, with 51 senators voting in favor and 45 against.
Lutnick, who serves as the CEO of financial services firm Cantor Fitzgerald, is considered a close ally of the new US president. He is tasked with implementing the Trump administration’s foreign policy, which has taken a confrontational turn since Trump assumed office. Lutnick has accused China of "targeting America from within" through the alleged distribution of the painkiller Fentanyl. He also aims to fund tax cuts and protect US industry through tariff revenues.
In contrast, many economists contend that the tariffs are counterproductive, potentially fueling inflation throughout the economy. The costs of the tariffs are typically passed on to consumers. During his Senate confirmation hearing last month, Lutnick dismissed the notion that tariffs contribute to inflation as "nonsense." He also advocated for a tough stance against the Beijing government and the imposition of tariffs on US imports, arguing that tariffs should be used to establish "fairness and respect."
Lutnick assumes his new role as Commerce Secretary amidst looming trade disputes. Trump recently announced the possibility of tariffs on auto imports "around April 2nd." On Tuesday, he specified a tariff rate of approximately 25% on auto imports.
Trump has already imposed new tariffs of 25% on products from Canada and Mexico, though these have been temporarily suspended. The US will also levy a 25% tariff on steel and aluminum imports effective March 12th.
Lutnick has already signaled his willingness to impose sweeping "counter-tariffs" on US trading partners starting April 2nd. Prior to taking office, Lutnick pledged to divest his corporate holdings. His financial disclosures reveal that he holds positions in over 800 companies and other private entities.
Key Points
- The Senate has confirmed Howard Lutnick as the new US Commerce Secretary, despite opposition from many economists.
- Lutnick, a close ally of President Trump, is expected to implement the Trump administration’s confrontational foreign policy and protectionist trade agenda.
- Lutnick has dismissed concerns about the inflationary impact of tariffs, arguing for their use in promoting fairness.
- The new Commerce Secretary faces looming trade disputes, including the potential for tariffs on auto imports from April 2nd.
- Lutnick has pledged to divest his corporate holdings prior to taking office, as his financial disclosures reveal extensive investments.
