Official announcements from the U.S. Department of Commerce or U.S. Trade Representative

Trump Commerce Nominee Howard Lutnick Backs Tariffs, CHIPS Act in Senate Hearing

Jan 29, 2025, 03:56 PM

Howard Lutnick, President Donald Trump's nominee for Secretary of Commerce, testified before the Senate Commerce Committee, chaired by Senator Ted Cruz, during his confirmation hearing on Wednesday. Lutnick, CEO of investment bank Cantor Fitzgerald and a cryptocurrency advocate, emphasized his commitment to supporting American companies and outlined his views on trade, tariffs, and technology. He praised the CHIPS Act as an 'excellent down payment' to bring semiconductor manufacturing back to the United States and vowed to be 'very strong on chip controls.' He stated that the U.S. must lead in artificial intelligence and issue standards. Lutnick expressed his preference for 'across-the-board' tariffs applied on a 'country-by-country' basis to create reciprocity and fairness in trade, asserting that 'tariffs can be used to create fairness' and 'tariffs don't cause inflation,' calling suggestions to the contrary 'nonsense.' He criticized China, stating that it needs to 'stop using U.S. tools to compete,' and highlighted that U.S. farmers are 'treated with disrespect around the world.' Lutnick also advocated for U.S. stablecoins to be audited and fully backed by U.S. Treasuries to ensure transparency in the cryptocurrency market. During his testimony, Lutnick became visibly emotional when reflecting on the loss of over 650 Cantor Fitzgerald employees, including his brother, during the 9/11 terrorist attacks. Vice President JD Vance introduced Lutnick at the hearing, and senators, including Elizabeth Warren, raised questions about his connections to the cryptocurrency firm Tether, which has been linked to illicit activities.