Lutnick has reportedly pushed for ‘more aggressive’ tariffs during talks
Your support helps us to tell the story
Support Now
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.
It’s unclear what impact President Donald Trump’s “Liberation Day” tariffs will have on the U.S. economy, but if things go badly, members of the administration are reportedly ready to blame Secretary of Commerce Howard Lutnick.
Lutnick, a businessman and former CEO of Cantor Fitzgerald, is aligned with the president on tariffs, believing they will balance the U.S. budget and reduce its deficit.
Despite fears that they could plunge the U.S. stock market – or worse, incite a recession – Lutnick has said they are “worth it” and “produce revenues,” though from American businesses that pay the tariffs, and U.S. consumers who have to help cover them.
Lutnick has even advocated for them, allegedly “pushing” for “more aggressive tariffs” one person close to the administration told Politico.
Secretary of Commerce Howard Lutnick has championed tariffs while speaking with reporters on TVopen image in gallery
Secretary of Commerce Howard Lutnick has championed tariffs while speaking with reporters on TV (REUTERS)
While Peter Navarro serves as Trump’s trade adviser, the Commerce secretary’s positive position on tariffs has now made him the de-facto fall guy should the economy or stock market respond poorly to Trump’s tariffs, two people told Politico.
A spokesperson for the White House told Politico that “every member of the Trump administration is aligned on finally leveling the playing field for American industries and workers.”
Spokesperson Kush Desai added: “President Trump has assembled the best and brightest trade team in modern American history to reignite American Greatness, and they are hard at work following the same playbook — President Trump’s playbook — to deliver for the American people,.”
Each time Trump has threatened to impose, or briefly imposed, 25 percent tariffs on Canada and Mexico – the nation’s largest trading partners – the markets have responded poorly.
Trump has not revealed what tariffs he will impose on which countries or if he will stick to reciprocal tariffs – those proportional to tariffs imposed by other countries. The president has mentioned the reciprocal tariff plan multiple times, but Treasury Secretary Scott Bessent indicated there could more narrowly tailored tariffs for the country’s largest trading partners by volume.
The economic impact of Trump’s sweeping tariff plan will become clear on Thursday morningopen image in gallery
The economic impact of Trump’s sweeping tariff plan will become clear on Thursday morning (Getty Images)
Bessent has remained a “measured voice” in the tariff talks, according to Politico.
A “worst case scenario” would be Trump implementing a 20 percent tariff across the board, a Moody’s analyst told The Washington Post. This would disproportionately hit lower-income consumers and businesses that rely on imported goods, send stocks plummeting and hurt U.S. jobs – essentially sending the U.S. into a recession.
While White House aides have reportedly drafted that proposal, it’s unclear how likely the scenario is.
Trump’s tariff plan will become clear on Wednesday afternoon when Trump hosts his “Liberation Day” event.
Although the tariffs will go into effect immediately, the stock market will be closed by that point so the economic impact will become clear on Thursday morning.