Commerce Secretary Howard Lutnick defended President Donald Trump’s taxes as aid wobbled this year over stock market volatility, and he said the end result may be “worth” the financial falls.
During an interview with CBS News on Tuesday, Lutnick was pressed on whether there are any problems the Trump administration’s tax laws might lead to a downturn after the United States and Canada engaged in a power battle over Ontario’s 25 % light tax on Minnesota, Michigan, and New York.
Lutnick contended that any possible economic slump may be because of the lingering effects of Biden-era policies, arguing that Trump’s tariffs are spurring economic development in the U. S., encouraging companies to transfer investments worldwide up to local creation, and creating innovative American jobs.
” These policies are the most important thing America has ever had”, Lutnick said, adding that it was “worth it” if such policies led to a recession, although he downplayed the event of an economic downturn occurring.
” The only reason there could possibly be a recession is because the Biden nonsense that we had to live with. These policies produce revenues. They produce growth. They produce factories being built here”, Lutnick continued. “You’re seeing the announcements. Eli Lilly calls me and says,’ Come to my opening, we’re announcing$ 40 billion new pharmaceutical plant.’ I mean, it is company after company. Manufacturing, auto companies, said … ‘ We’re going to move back to America.’ These are American jobs, American manufacturing. And anybody who bets against Donald Trump probably is a fool”.
Lutnick, who has reportedly earned a reputation for having an abrasive personality and tendency to get ahead of the curve when it comes to Trump’s economic announcements, has emerged as an important figure in the White House.
President Donald Trump speaks as C. C. Wei, chairman and CEO of Taiwan Semiconductor Manufacturing Company, Commerce Secretary Howard Lutnick and White House AI and crypto czar David Sacks, listen in the Roosevelt Room of the White House in Washington, Monday, March 3, 2025. ( Pool via AP )
During his CBS interview on Tuesday, Lutnick pointed to the short-lived electricity levy Ontario placed on the U. S. this week to back up his claims that Trump’s tariffs work and to knock concerns that the White House’s tariff strategy is chaotic.
On Monday, Ontario Premier Doug Ford announced he was placing the 25 % tariff on three U. S. states immediately. The electricity tariff responded to Trump’s move to enact 25 % tariffs on Canada on March 4, with a lesser tariff of 10 % on energy resources from the country.
On Tuesday, Trump announced on Truth Social that he would retaliate by doubling a tariff on all steel and aluminum Canadian exports set to take effect Wednesday morning.
Hours after the president’s announcement on Truth Social, Ford posted to X he had called Lutnick and agreed to withdraw the electricity surcharge.
” He needed to break some guy in Ontario who said he was going to tax American energy 25 %. The president of the United States, in the White House, says,’ Oh no, you won’t,’ and breaks him”, Lutnick said of Trump’s negotiating strategy. ” Breaks him … by a tweet and a Truth ( social post ). And you think that’s chaotic”?
TRUMP SLAPS 25 % ADDITIONAL RETALIATORY TARIFFS ON CANADA
” Thank God we have a president who’s taking care of us. Because if you were in one of those states and you thought your energy prices were going to go up 25 % and you said,’ Where’s the president? And all of a sudden, he came down like thunder to make that end, you’d say,’ Cool, I’m glad that’s the guy in the White House,'” Lutnick continued. ” Let the deal-maker make his deals”.
Trump withdrew the additional 25 % tariff after Ford pulled the electricity surcharge.
