On Tuesday, November 19th, President-elect Trump nominated Wall Street financier Howard Lutnick to serve as Secretary of Commerce and United States Trade Representative. Lutnick is a supporter of tariff policies.
Lutnick is the CEO of the bond trading company Cantor Fitzgerald. He has been one of the most prominent figures in the financial industry supporting Trump’s election in recent months, and a close ally of Trump.
In his nomination statement, Trump said that Lutnick would lead the tariff and trade agenda, as well as directly oversee the Office of the United States Trade Representative.
“As the Co-Chair of the Trump-Pence Transition Team, Lutnick has created the most complex processes and systems to help us build the greatest government in American history,” the statement read.
As the Co-Chair of the President-elect Transition Team, Lutnick spent most of his time at Trump’s Mar-a-Lago estate in Florida, drafting lists of candidates for government positions.
By elevating Lutnick to the positions of Secretary of Commerce and Trade Representative, Trump entrusts him with overseeing the economic agenda of the new government. This means he will play a pivotal role in implementing the tariff agenda proposed by the President-elect.
Lutnick is an advocate for broad tariff policies. In a September interview with CNBC, he stated, “Tariffs are a great tool that the President uses – we need to protect American workers.”
During his campaign, Trump proposed imposing a 60% tariff on Chinese goods. Tariffs are seen as a means for Trump to push competitors to the negotiation table.
However, some scholars express concerns that tariffs will increase costs for importers, and may not be an efficient way to raise government revenue and promote prosperity.
The purpose of the Department of Commerce is to expand U.S. economic growth and promote domestic industry development.
The next Secretary of Commerce will ensure that the U.S. maintains a leading edge over Chinese tech companies in global competition for key technologies, including competition with Huawei and SMIC.
Due to concerns that Beijing may exploit American technology for China’s military development, both the Trump and Biden administrations actively use regulations from the Department of Commerce to block the flow of cutting-edge American and foreign technology to China, particularly advanced chips and chip manufacturing equipment.
During Trump’s first term, the Department of Commerce initiated dozens of anti-dumping and anti-subsidy investigations against Chinese imports on its own, without waiting for petitions from U.S. manufacturers.
Lutnick’s bio describes him as a “dynamic force on Wall Street.” He joined Cantor Fitzgerald in 1983 and became President and CEO at the age of 29.
The company, which employed 960 people, suffered heavy losses during the September 11, 2001 terrorist attacks, losing 658 employees.
The bio states that Lutnick has an unwavering sense of mission as he rebuilt the company in memory of his lost colleagues and friends, supporting their families.
Lutnick and the Cantor Fitzgerald Relief Fund donated $180 million to families of the 9/11 victims.
The bio also emphasizes his firm commitment to philanthropy, having donated over $100 million to victims of terrorism, natural disasters, and other emergencies worldwide.