The Senate has confirmed wealthy financier Howard Lutnick as the new commerce secretary, a staunch supporter of President Donald Trump's hardline trade policies. Lutnick, former CEO of Cantor Fitzgerald, will now oversee 50,000 employees at the Commerce Department, responsible for tasks ranging from collecting economic statistics to managing the census and issuing weather reports.
One of Lutnick's primary responsibilities will be to work alongside Jamieson Greer, Trump's nominee for the top U.S. trade negotiator, in implementing the president's aggressive plans to impose import taxes on U.S. trading partners, including both allies and adversaries.
Trump sees tariffs as a versatile economic tool, aiming to raise funds for tax cuts, protect U.S. industries, and pressure other countries into making concessions on various issues. However, mainstream economists generally view tariffs as counterproductive, as they can lead to increased costs for import companies, potentially passing on higher prices to consumers and contributing to inflationary pressures.
During his confirmation hearing, Lutnick dismissed concerns about tariffs contributing to inflation and expressed support for using tariffs as leverage to lower barriers to American exports on a country-by-country basis.
Trump recently announced plans for 'reciprocal' tariffs, which would match the higher taxes imposed by other countries on U.S. goods, disrupting the longstanding rules governing world trade negotiations. The president has already imposed tariffs on Chinese imports and increased taxes on foreign steel and aluminum, with further tariffs on goods from Canada and Mexico threatened.
Lutnick, who led Cantor Fitzgerald's recovery after the September 11, 2001, attacks, has pledged to divest his business holdings, which include positions in over 800 businesses and private organizations.
