Commerce Secretary Howard Lutnick defends Trump’s tariff endgame against recession fears
Tariffs are 'playing for the strength of America,' Lutnick tells FOX Business
Commerce Secretary Lutnick: Tariffs are 'fundamental for national security'
U.S. Commerce Secretary Howard Lutnick breaks down reasoning behind a plethora of tariffs, reacts to trade criticism and reveals the ultimate goal for President Donald Trump's negotiation tactics.
Setting the record straight around seemingly constant tariff debates in the political and economic spheres, President Donald Trump’s commerce secretary quelled any recession fears and explained how the tariff agenda is "playing for the strength of America."
"The president is here to protect American workers. He's here to protect American industry. We're going to stop that nonsense and bring steel here," Howard Lutnick said Wednesday on "Varney & Co."
"So this concept that, ‘Oh, prices are going to rise,’ you got to remember, President Trump is playing for the strength of America," he continued.
After taking action against Mexico, Canada and China, Trump’s 25% tariff increase on all steel and aluminum imports officially took effect on Wednesday, the latest move in the administration’s plans to reshape global trade norms in favor of U.S. manufacturing.
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The order extends the duties to hundreds of downstream products, including nuts and bolts, bulldozer blades and soda cans. It also prompted retaliation from the European Commission, which announced shortly after Trump's tariffs took effect that it would impose counter tariffs on the equivalent of $28 billion worth of U.S. goods starting next month.
Commerce Secretary Howard Lutnick said "nothing" will stop President Donald Trump's tariff endgame on "Varney & Co." (Getty Images)
"So I think the president views steel and aluminum as fundamental for our national security. I mean, we can't be in a war and rely on steel and aluminum from some other country," Lutnick explained. "It's just not reasonable."
"So the president wants steel and aluminum in America. And let me be clear — nothing's going to stop that until we've got a big, strong domestic steel and aluminum capability. And by the way, he's going to add copper to that mix, too," the secretary added.
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When FOX Business host Stuart Varney pointed out that aluminum, steel and copper prices have already started to rise, and could potentially "ripple" through the economy, Lutnick put the onus on the Biden administration.
"Inflation comes from a government printing too much money, the Biden administration having a $2 trillion deficit. You don't get inflation from having a tariff. Because what a tariff says is, if it's made in Europe, if it's made foreign, it might cost a little more. But that which is made in America does not cost more," he noted.
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Planned steel and aluminum production is only operating at 50 to 55%, according to Lutnick, who argues that Trump’s plan is to raise that yield to 80%.
The former CEO of Cantor Fitzgerald and BGC Group also responded to a Politico article claiming "Trump allies are blaming Lutnick for Trump's tariff turmoil," quoting anonymous sources who say he is acting like a "mini Trump."
"I am indeed helping him execute his policy. The economic team is one. We're doing it together," the secretary clarified. "We understand what he wants to achieve. He wants to bring manufacturing back to America. He wants to bring and protect America from certain industries, which he's called out. And we're doing it together."
FOX Business’ Eric Revell contributed to this report.
