On Thursday, April 3rd, US Commerce Secretary Howard Lutnick stated that the new tariff policy of the Trump administration will encourage manufacturers to build factories in the United States to avoid the cost pressure brought by high tariffs. He emphasized that this is not only an economic restructuring but also aimed at ensuring long-term prosperity and security for the United States.
Lutnick, in an interview with CNBC, pointed out that global trade rules have long been unfavorable to the United States, and President Trump is forcing countries to reevaluate their trade policies through tariffs and negotiations to achieve fair competition.
On April 2nd, the Trump administration implemented the “Universal Tariff,” imposing a 10% basic tariff on all goods imported into the United States and higher tariffs on some major trading partners, causing a global stir. President Trump fulfilled his campaign promise and referred to this day as “Liberation Day” for the United States.
Lutnick emphasized that behind the tariff policy lies not only economic considerations but also national security. He noted that the US’s overreliance on overseas supply chains, especially for medicines and semiconductors, has become a potential risk.
“Why are all our pharmaceutical raw materials produced in Asia? This is not a matter of cheap labor but a policy failure that has hollowed out the United States from the world,” he said.
Lutnick warned that in the event of a war, the US might not be able to obtain antibiotics or critical components, which is unacceptable.
He specifically mentioned Taiwan’s dominance in semiconductor manufacturing, stating that this dependency needs to change.
“Our electronic products are mainly manufactured in Taiwan, 9000 miles away, where our way of life is being shaped. These things need to come back to the United States,” Lutnick said.
The Trump administration plans to gradually “reshore” these key industries to ensure self-sufficiency for the United States in times of crisis.
Lutnick is confident in the revival of US manufacturing. He stated that with factories returning to the US, there will be a wave of production boom domestically, particularly in agriculture, automotive, and technology sectors. He mentioned that US workers are ready for this shift, especially as factory efficiency will greatly improve with the application of robotics.
“You will see the greatest surge in technical training, teaching people to become robot technicians, engineers, and electricians for high-tech factories,” Lutnick said. He predicted that this will create high-paying job opportunities that only require a high school education plus professional training, saying, “Americans are ready for it.”
He cited Apple’s commitment to invest $500 billion in US production as the beginning of the resurgence of manufacturing.
“We all have our beloved iPhones, so why do they have to be manufactured in Taiwan and China? Why can’t they be produced in the US with robots?” Lutnick said.
He believes that as tariff pressures force businesses to reconsider their supply chains, the US will become a significant hub for global manufacturing, leading to a substantial increase in domestic Gross Domestic Product (GDP).
“Trump has said there are $50 billion worth of factories coming to the US. Think about $50 billion divided by his four-year term; this is huge GDP growth solely from factory construction,” Lutnick said.
Lutnick revealed that the Trump administration has been negotiating with major global trading partners for over a month, requesting them to open their markets and accept more US products like agricultural produce and automobiles. He gave an example of a “major country” where the trade minister has promised to provide the same subsidies to US automakers as their domestic companies in exchange for market access, but he did not disclose which country.
Lutnick criticized many countries for being “stringent” towards US products, stating, “Tariffs are just the tip of the iceberg; the real issue lies beneath the surface of the water. They have subsidies, trade barriers. If you deviate slightly, they won’t let you sell.”
He expects that as negotiations progress, tariff rates will gradually decrease, and the global market will become more open to US products. “We are consumers of a $200 trillion market, the world needs us, retaliation is ineffective,” Lutnick said.
He also believes that this “global trade adjustment” will prompt companies to act swiftly, with “everyone building factories in the US,” transforming the US from a consumer to a producer.