Jan. 29 (UPI) — Howard Lutnick said tariffs are essential for supporting U.S.-based manufacturing and agriculture and won’t trigger inflation. He made the comments while undergoing a Senate confirmation hearing on Wednesday.
Members of the Senate Commerce, Science and Transportation Committee queried Lutnick while assessing his qualifications to be the Trump administration’s Commerce secretary.
Lutnick is the executive chairman of the Newark Group, which is a publicly traded real estate firm that deals in commercial properties. He also is the CEO of Cantor Fitzgerald and the BGC Group.
He told the Senate committee he favors applying blanket tariffs on a country-by-country basis to help balance trade between the United States and other nations.
“Our farmers, our ranchers and our fishermen are treated with disrespect,” Lutnick told the committee. “We need that disrespect to end, and I think tariffs are a way to create reciprocity.”
Sen. Tammy Baldwin, D-Wis., suggested imposing such tariffs would drive inflation and harm U.S. consumers.
“It is just nonsense that tariffs cause inflation,” Lutnick said, adding that the prices for some products might rise but inflation would not due to tariffs.
While Lutnick expressed a preference for blanket tariffs, President Donald Trump favors targeting specific market segments for tariffs rather than applying them equally to all goods imported by a particular nation.
Lutnick also expressed opposition to policies that enable U.S. manufacturing firms to move to Mexico, but his business activities have promoted Mexico as a friendly destination for such firms, the Washington Post reported.
Lutnick, who is a billionaire, told committee members he intends to sell his business holdings and assets within 90 days if he is confirmed as secretary of the Commerce Department.
“I will divest,” he told the committee. “I’ve made enough money in my life.”
Lutnick earlier provided a financial disclosure, which shows he has investments in more than 800 business entities and private organizations.
