Senate confirms Howard Lutnick as commerce secretary amid trade policy disputes

In February 2025, the Senate approved Howard Lutnick as the new commerce secretary for the United States, signaling a continuation of President Donald Trump's aggressive trade policies. Lutnick, a wealthy financier and former CEO of Cantor Fitzgerald, is now responsible for overseeing about 50,000 employees within the Commerce Department. Among these personnel duties are tasks such as collecting economic data, conducting the census, and issuing weather reports. However, it is anticipated that his primary focus will be managing trade relations and implementing Trump’s controversial plans regarding import taxes on various countries, including both allies and adversaries. The vote confirming Lutnick was narrowly passed at 51-45, reflecting a deeply divided Senate on trade issues. President Trump views tariffs as a strategic tool designed to raise revenue to support tax cuts, protect U.S. industries from foreign competition, and compel other nations to relax their own trade barriers and address associated concerns such as immigration and drug trafficking. Historically, mainstream economists have criticized such tariffs, labeling them as counterproductive, as they tend to be ultimately borne by American consumers, potentially leading to increased inflation rates. Throughout his confirmation hearings, Lutnick dismissed common economic arguments that tariffs would add inflationary pressure, labeling such suggestions as “nonsense.” He rather advocated for the application of across-the-board tariffs on a country-by-country basis to leverage negotiations in favor of American exports. Recently, Trump announced intentions to implement reciprocal tariffs, aiming to elevate U.S. tax rates on imports to correspond with those imposed by other nations. This represents a significant shift from established international trade conventions that have historically relied on multilateral negotiations for tariff rates. Lutnick's appointment comes at a time when heightened tensions exist around U.S. trade policies. The Trump administration has already enacted a 10% tariff on Chinese imports, increased duties on foreign steel and aluminum, and threatened to impose additional tariffs on goods sourced from Canada and Mexico. His appointment could further escalate these tensions, given the administration's willingness to employ aggressive trade measures. Lutnick has a unique background that includes leading Cantor Fitzgerald’s recovery from the devastation of the September 11 attacks in 2001, where the firm lost a majority of its employees, including Lutnick's own brother. His experience in crisis management could be pivotal in this new role as the Commerce Secretary.