Lutnick Denies Tariffs Cause Inflation, Advocates For 'Reciprocity and Fairness'

During a Senate hearing, Howard William Lutnick, nominated by President Trump for commerce secretary, stated that tariffs do not cause inflation, citing India and China as examples. He emphasized the need for reciprocal trade relations to counteract unfair treatment towards the US and its farmers. He backed Trump's tariff review.

Howard William Lutnick, the choice for commerce secretary by President Donald Trump, emphasized during his Senate hearing that tariffs are not responsible for inflation, contrary to popular perception. Citing examples from India and China, the businessman refuted any direct linkage between tariffs and inflationary trends, labeling the notion as 'nonsense.'

Lutnick addressed the Senate Commerce, Science, and Transportation Committee, assuring them of a better economic outlook for the US. He argued that although tariffs might affect specific product prices, these changes are not inherently inflationary. In his view, the global trade environment treats the US unfairly, advocating for the use of tariffs to achieve reciprocity and regain respect.

Pointing to the challenging situations currently faced by American farmers, Lutnick stressed the need for improved treatment from international trade partners, recalling America's past generosity in rebuilding after global conflicts. He highlighted President Trump's executive directive to review tariff models and alluded to pressing issues like illegal migration and the fentanyl crisis.

(With inputs from agencies.)