President Donald Trump’s nominee to lead the Commerce Department, Howard Lutnick, testified before the Senate Commerce, Science and Transportation Committee on Wednesday, stating that the argument that tariffs cause inflation is “nonsense.” Lutnick noted that India and China, the two countries with the most tariffs, do not have inflation. He also argued that tariffs would not cause broad inflation, but rather affect specific products.
Lutnick also expressed his support for “across-the-board” tariffs on a “country-by-country” basis, rather than targeting specific sectors or products. He believes that this approach would create reciprocity and make trade more fair. Lutnick also criticized the European Union for treating the US industry unfairly, citing policies that prevent American ranchers from selling steak in Europe.
Lutnick’s comments echoed those of Trump, who has promised to bring down household prices and has threatened to impose tariffs on goods from Canada, Mexico, and China. The nominee also expressed his support for Trump’s plan to impose a 25% tariff on goods from Canada and Mexico, and to increase tariffs on China by 10%.
The hearing came as the US is preparing to conduct a review of its trade policy and tariff models, with a focus on China. The review is part of an effort to address concerns about mass migration and drug trafficking. Lutnick’s nomination is pending before the full Senate, and his comments are likely to be closely watched by lawmakers and trade experts.