Trump’s Tariff Man at Commerce, Howard Lutnick, is making no bones about the fact that he is a fan of President Trump’s idea of across-the-board tariffs on all countries.
At a hearing on his nomination before the Senate Commerce Committee last week, several senators expressed a preference for targeted tariffs. But the nominee for Commerce Secretary, said across-the-board tariffs are the way to get “reciprocity, respect and fairness” from other countries.
Targeted tariffs are more likely to trigger retaliation aimed at US agriculture than across-theboard tariffs, he said. Mr. Lutnick did not suggest a particular rate he is looking at for across-the-board tariffs. President Trump has raised the possibility of 10 percent.
In response to a question, Mr. Lutnick said arguments that raising tariffs will cause higher inflation is “nonsense.” He acknowledged, however, that prices on some products could rise.
The 25 percent tariff hike that President Trump says he plans to impose on Canada and Mexico on February 1 is not really a tariff “per se,” Mr. Lutnick said, but rather it’s about “creating action.”
If Canada and Mexico secure their borders against illegal immigration and cut off the flow of fentanyl into the United States there won’t be tariffs, he said.
Meanwhile, Commerce and the US Trade Representative’s Office have been charged with producing a report by April 1 on the need for across-the-board tariffs on all countries, he noted.
Asked about tariff exclusions, Mr. Lutnick said he thinks the process should be simplified and more targeted than it was during Mr. Trump’s first term. He also wants to see tariffs used as an enforcement tool for violations of export controls. Mr. Lutnick took a hawkish stance on China, saying Beijing should be subject to the highest tariffs and stiffer export controls.
William Kimmitt is set to be tapped for the position of Under Secretary of Commerce for International Trade, where he will lead the International Trade Administration (ITA) The role is responsible for promoting U.S. exports, enforcing trade laws, fostering fair trade, and supporting American businesses in global markets.
A partner at Kirkland and Ellis, Mr. Kimmett had been nominated by President Biden to the International Trade Commission, although he withdrew his nomination in December.
Jeffrey Kessler is expected to be tapped to lead Commerce's Bureau of Industry and Security. Assistant Secretary for Enforcement and Compliance (2019–2021). Appointed during the first Trump administration to lead the Enforcement and Compliance division within the ITA, Mr. Kessler oversaw enforcement of U.S. antidumping (AD) and countervailing duty (CVD) laws, managed trade remedy investigations and policy development to counter unfair foreign subsidies and dumping.
Reuters and Inside US Trade first reported the Under Secretary nominations.
President Trump’s nominee for US Trade Representative Jamieson Greer will be making his appearance next week before the Senate Finance Committee. Finance Chairman Mike Crapo (R-Idaho) announced yesterday that the committee will hold a hearing on Mr. Greer’s nomination on February 6. Mr. Greer is often described as a protégée of Mr. Trump’s first term USTR Robert Lighthizer. He served as Mr. Lighthizer’s chief of staff at USTR and has endorsed the President’s tariff policies. The hearing is slated for February 6 at 10 am in room 215 Dirksen Senate Office Building.
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