Howard Lutnick, the U.S. Commerce Secretary, recently proclaimed that he’s completed the outlines of a great trade victory. This deal is currently pending ratification by the leaders of one particular, yet-to-be-named foe. His remarks were made during a walk-and-talk with CNBC’s Brian Sullivan at a semiconductor fab building site in Arizona.
This gave rise to his comments, almost a month after “Liberation Day.” On July 6th, 2018, President Donald Trump locked in massive eradications for tariffs on industries. Over the next three months, most tariffs have been postponed for 90 days. The tariffs on China have ballooned to over 100%, making the way forward with international trade negotiations much more difficult.
“My portfolio is the rest of the world’s trade deals,” Lutnick stated, underscoring his role in managing U.S. trade relations outside of China. Treasury Secretary Scott Bessent’s authority extends to directly managing negotiations with China. This allows Lutnick to focus on continuing the search for opportunities with other potential partners.
Among others, Japan, South Korea, and India have increasingly become the focus of speculation as the next big trade agreement. The Trump administration likes to tout the interest from all these countries that have been clamoring to create trade deals in the last few weeks. As hopeful as Lutnick might be, there aren’t any formal deals made public still to date.
“I have a deal done, done, done, done, but I need to wait for their prime minister and their parliament to give its approval, which I expect shortly,” Lutnick commented, highlighting his confidence in the rapid progress of international negotiations.
After Lutnick’s testimony, Wall Street cheered, sending the stock market up to its session highs. The market is recovering from several weeks of dramatic downturns due to the first wave of tariffs. This increase is a welcome indication of recovery we’ve experienced over the last week.
Lutnick’s comments reflect a broader strategy aimed at bolstering U.S. manufacturing through the Trump administration’s tariff policies. By building up America’s international trade relationships beyond China, Lutnick hopes to open new markets for U.S. manufacturers.
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