San Francisco Frontiers - Trump commerce pick says favors broad tariffs, vows tough China stance

"We can use tariffs to create reciprocity, fairness and respect," said Howard Lutnick, a close Trump ally and billionaire CEO of Wall Street firm Cantor Fitzgerald.

Lutnick's appearance comes as Trump threatens sweeping duties on imports from allies and adversaries alike -- with levies on major trading partners Canada and Mexico potentially to be unveiled this weekend.

On Wednesday, Lutnick said the president's February 1 deadline for 25 percent tariffs were aimed at getting both neighbors to do more on illegal migration and particularly the flow of deadly fentanyl.

"This is a separate tariff to create action from Mexico and action from Canada," he said, differentiating between uses of duties.

"As far as I know they are acting swiftly, and if they execute it, there will be no tariff."

But Lutnick stressed that duties on China -- and "adversaries" -- should be higher than those on other countries.

In announcing his nomination last year, Trump said Lutnick would lead the world's biggest economy's tariff and trade agenda, with additional direct responsibility for the US Trade Representative's office.

Asked about the impact of duties on prices, Lutnick conceded certain products' costs may rise. He charged that "it is nonsense" however that they would cause widespread inflation.

Lutnick vowed to work to understand the impact of retaliatory tariffs on US agriculture and manufacturing.

- 'Strong' export curbs -

Lutnick also signaled he would take a firm stance on export controls involving China, after the recent emergence of the DeepSeek chatbot and its lower cost breakthrough threatened US-based artificial intelligence leaders.

"Let them compete, but stop using our tools to compete with us," he said of rivalry with Beijing. "I'm going to be very strong on that."

If confirmed, Lutnick will helm a department overseeing export controls to competitors, aimed at ensuring the United States' lead in sensitive technology with military uses.

"Our export controls, not backed by tariffs, are like a whack-a-mole model," he told the Senate Commerce, Science and Transportation Committee.

"I do not believe that DeepSeek was done all above board," he added, pledging rigorous enforcement of restrictions to help the United States stay ahead.

On the CHIPS and Science Act, a major law passed during former president Joe Biden's term aimed at strengthening the US semiconductor industry, Lutnick called investments towards it "an excellent downpayment."

But he added that "we need to review them and get it right."

Vice President JD Vance, in remarks introducing Lutnick to the panel, said the billionaire ally would help convince businesses that America is thriving, bringing US commerce "back on track."

The commerce secretary nominee was co-chair of Trump's 2024 transition team, identifying new hires for the administration.

In the past, he has criticized electric vehicles and blamed China for being the source of fentanyl into the United States.

He has also lamented the loss of US manufacturing jobs and off-shoring to China.

On Wednesday, he said: "Tariffs will encourage companies to come back and build in America."

The Commerce Department under Biden ramped up export controls on critical technologies like quantum computing and semiconductor manufacturing goods, taking aim at access by countries such as China.

Trump's administration could harden this stance.

Y.Gomez--SFF