Commerce Secretary Howard Lutnick defended President Trump’s new tariffs, arguing they are necessary to stop other countries from taking advantage of the U.S. through unfair trade deals.
Key Facts:
- Trump’s tariffs—25% on Canadian and Mexican imports, 20% on Chinese goods—started Tuesday.
- Lutnick argues tariffs will bring more jobs and manufacturing back to America.
- Honda already plans to build the next-generation Civic hybrid in Indiana instead of Mexico.
- Lutnick says other countries, like Canada, have tariffs as high as 250% on dairy imports.
- Trump cites drug trafficking as another reason for tariffs on Canada and Mexico.
The Rest of The Story:
Trump’s tariffs sparked immediate backlash from Canada, Mexico, and China, who vowed retaliatory measures.
Commerce Secretary Lutnick said the move would eventually create jobs by forcing manufacturers to return production to America, although he admitted it might take around six months for industries like auto manufacturing to adjust.
Lutnick dismissed worries about inflation, saying tariffs alone won’t cause it.
He argued China and India impose high tariffs without high inflation, and said current complaints were exaggerated.
President Trump has also linked tariffs to reducing drug trafficking, highlighting the flow of fentanyl through Canada and Mexico into the U.S.
"You can't kill Americans and get away with it!" Mexico, China, and Canada must stop the flow of fentanyl and opioids into our country. The President is not going to take this laying down.
This morning, I had the opportunity to deliver that message to @SquawkCNBC, @JoeSquawk,… pic.twitter.com/JU1yTSNOBA
— Howard Lutnick (@howardlutnick) March 4, 2025
Commentary:
America has long faced an uneven playing field in international trade, losing jobs and wealth because of unfair agreements.
Lutnick is correct: countries like Canada and China impose incredibly high tariffs, restricting American companies while freely selling their goods here.
For decades, politicians have talked tough but never stood firm.
Now, Trump is finally changing that.
Lutnick rightly emphasizes how imbalanced deals hurt American workers, especially in manufacturing.
Cars built abroad by American companies highlight the issue—jobs that belong here end up in Mexico or Canada.
Trump’s tariffs put pressure on manufacturers to return home, providing a powerful incentive to bring back high-paying jobs.
Critics who complain about short-term price increases ignore the bigger picture.
For too long, American families have suffered from factories closing and wages stagnating.
A temporary increase in prices is a small price to pay if it results in long-term prosperity and job security.
The example of Honda moving Civic hybrid production to Indiana shows Trump’s strategy working already.
It demonstrates that companies recognize the cost of tariffs outweighs the benefits of cheap foreign labor.
As production returns to America, communities across the nation will thrive again.
Additionally, tariffs aren’t only about jobs—they’re about fairness and national security.
Countries using American consumers to enrich themselves must offer equal treatment.
Trump’s stance on fentanyl trafficking is another critical dimension, showing that tariffs also serve to protect American lives.
In short, America’s generosity has been taken advantage of, and it’s time for our trading partners to respect our markets.
Lutnick is right to stand firm.
These tariffs represent a bold step toward lasting economic fairness.
The Bottom Line:
Trump’s tariffs aim to balance unfair trade practices, protect American jobs, and enhance national security.
Although initially controversial, this policy pushes foreign companies to invest in American workers.
Ultimately, fairer trade means a stronger America economically and politically.
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