Sens. JD Vance, N.C. Lutnick, M.S.Vance, and the Second Term: The Taxpayer’s Responsibility to the State and the Government
Lutnick told lawmakers he was committed to divest all his assets before assuming the Cabinet position to avoid financial conflicts of interest. He previously revealed stakes in many firms and legal entities. It’s unclear whether Lutnick might sell his assets to his adult children.
Lutnick was introduced at the hearing by Vice President JD Vance, who described him as a personal friend, a wildly successful businessman and “just a good dude.” Senators praised Lutnick’s resilience after the death of both his parents at his young age and his fundraising to support the families of his colleagues who died in the Sept. 11 attacks.
The senator asked if President Trump would propose cutting infrastructure funding in a bipartisan way.
Would you refuse to do something if it was asked of you by President Trump? The senator returned to the question.
Several Democrats pushed Lutnick to commit to dispersing federal subsidies appropriated by Congress, for example for broadband access, even if President Trump directs him otherwise. In response, Lutnick repeated that his goal was to “give Congress the benefit of the bargain,” by ensuring programs were actually effective and efficient.
The CHIPS Act pledged $54 billion to revive the US chip manufacturing industry and much of the hearing focused on that. Trump has panned the program as wasteful, and Lutnick called it “an excellent down payment” that still needed to be reviewed to get it right.
He accused China of “leveraging what they’ve taken from us, stolen from us” to develop its groundbreaking DeepSeek chatbot, arguing that export controls on technology should be combined with stricter tariffs. Lutnick also said the government’s use of artificial intelligence tool would over time “rid the world of criminals using blockchain for illicit activity.”
Several lawmakers asked Lutnick about rising costs for both U.S. companies and consumers — especially if other countries retaliate with tariffs of their own on American exports.
The Trump administration plans to move forward with imposing stiff tariffs on Mexico, Canada and China on Saturday, in an attempt to further pressure America’s largest trading partners to accept deportees and stop the flow of migrants and drugs into the country.
He said that he wanted America to make it more fair. “We are treated horribly by the global trading environment… And we can use tariffs to create reciprocity, fairness and respect.”
The world has treated the United States with disrespect, but has also taken advantage of our good nature to grow their own economies.
He extolled the virtues of the United States, saying the country has the world’s brightest innovators, the greatest land in the world and the best farmers, fishers and ranchers who grow the most superior steers for “much more beautiful” steak.
Howard Lutnick, the billionaire Wall Street CEO, fielded questions about tariffs’ impact on U.S. manufacturers and farmers, federal funding for broadband access, China’s progress on artificial intelligence and reviving American domestic mining, logging and semiconductor production.
Trade and Consumer Competition: Implications for American Manufacturing, Energy and Energy Prices in the Light of the FIRE and COVID-19 Tariffs
The Commerce Department is in charge of the enforcement and granting of exemptions from import taxes. The Secretary of Commerce negotiates trade deals. The department also includes the National Oceanic and Atmospheric Administration with the National Weather Service, the Census Bureau and the National Telecommunications and Information Administration, which focuses on the use of wireless airwaves and broadband access.
Ernie Tedeschi, the director of economics at the Yale Budget Lab, estimates that a 25 percent tariff on all Canadian and Mexican imported goods — paired with a 10 percent tariff on all Chinese imports — would lead to a permanent 0.8 percent bump in the price level, as measured by the Personal Consumption Expenditures price index. That equates to over $1,200 for the average household. The Federal Reserve does not adjust interest rates, so the estimates assume that the targeted countries will retaliate.
In an email, Mr. Lutnick said he believed China should be hit with the highest tariffs and that Europe, Japan and South Korea had treated American industries unfairly.
Over time, economists also worry about the effects on growth, warning that trade tensions are likely to lead to less investment, more subdued business activity and slower growth.
The tariffs will make it much more difficult to bring products into the country. If importers choose not to pay the tariffs, supply chains will be disrupted and there will be product shortages. Companies may choose to increase prices and slow the economy in the future because of the tariffs.
The Fed is still trying to wrestle inflation down to 2 percent, but the economic implications of tariffs are making that difficult. In light of inflation and the uncertainty of the tariffs, the Fed held interest rates steady this week.
If fuel producers respond to the tariffs by decreasing production, gasoline prices could go up 15 to 20 cents a gallon in the Midwest, but not necessarily in the rest of the country.
While the United States is the world’s largest oil producer, refineries need to mix heavier oil from Canada, and lighter oil from other countries, to make gasoline and diesel. Roughly 60 percent of the oil that the United States imports comes from Canada, and about 7 percent comes from Mexico.
He stated that the tariffs may not apply to oil imports and that it was a good idea to avoid a spike in gas prices.
“We’ll be announcing the tariffs on Canada and Mexico for a number of reasons,” he said. We must do that because I will be putting a 25 percenttariff on Canada and 25 percent on Mexico.
President Claudia Sheinbaum of Mexico told reporters on Friday that the Mexican government had been working for months on a plan to react to possible tariffs. She said that Mexico was doing everything in its power to prevent tariffs and was prepared for any scenario. What do you want? That dialogue with respect prevail.”
Canadian and Mexican officials tried to convince the administration to hold off on tariffs since they were concerned about the security of the border.
In a press briefing Friday, White House press secretary Karoline Leavitt said the president would implement on Saturday a 25 percent tariff on goods from Mexico, a 25 percent tariff on goods from Canada, and a 10 percent tariff on goods from China.
Mr. Trump’s desire to hit allies and competitors alike with tariffs over issues that have little to do with trade demonstrates the president’s willingness to use a powerful economic tool to fulfill his domestic policy agenda, particularly his focus on illegal immigration.
Many businesses and shoppers are expecting higher prices on everything from gas to groceries as President Trump tries to protect America from unfair trade practices by Canada and Mexico.
Many businesses are preparing for the possibility of the tariffs being larger and more widespread. The trade data released on Wednesday shows that in December, imports increased dramatically, suggesting some companies tried to get ahead of tariffs.
“Importers were trying to bring in goods ahead of time,” says Matthew Martdin of Oxford Economics. “Holding inventory isn’t without its costs or its risks. Businesses have reason to believe that there will be enough demand for their inventory to be taken off the market.
The shoppers tried to get around the tariffs. Personal spending on durable goods such as autos and televisions jumped in December, according to figures released Friday by the Commerce Department. Mexico is the main producer of flat-screen TVs.
GM told financial analysts that it might shift some pickup truck production out of Mexico and Canada if tariffs happen. But the automaker is reluctant to act while the trade landscape is still uncertain.
Increasing expenses by 25% is going to lead to higher costs at the pump for U.S. consumers and higher costs for businesses around the country, says Martin
“Increasing expenses by 25% is going to lead to higher costs at the pump for U.S. consumers and higher input costs for businesses around the country,” Martin said.