Commerce Secretary Howard Lutnick commended the White House’s progress on trade negotiations with China on Sunday, downplaying fears of price hikes due to President Donald Trump’s tariffs.
During an interview with CNN’s Dana Bash on “State of the Union,” Lutnick expressed optimism about the ongoing U.S.-China trade talks in Switzerland over the weekend but refrained from divulging specifics.
Positive Sentiments
“Things feel really good,” Lutnick shared. He delegated the discussion to the trade team, emphasizing their current presence and the positive vibes from the previous day.
Addressing concerns about inflation, Lutnick shifted the burden away from American families, attributing it to businesses and foreign entities.
“The tariffs are primarily absorbed by businesses and countries, not American consumers,” Lutnick clarified. He cited the 25% tariffs implemented during President Trump’s first term as an example.
Contrasting Views
Despite Lutnick’s reassurances, economists and Democrats warn of the impending impact on consumers and labor as prices surge and supply chains constrict. Lutnick urged the public to reject these assertions.
“Don’t fall for the misconception that U.S. consumers bear the brunt,” he cautioned. Lutnick underscored that domestically produced goods are exempt from the tariff burden.
Trump hinted at a significant shift in U.S.-China trade relations, without elaborating, signaling a recalibration in the trade dynamics. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer engaged in negotiations in Switzerland.
The escalating trade tensions have led to a substantial 145% tariff on Chinese imports, triggered by retaliatory measures following Trump’s tariff imposition in April.
Steadfast Stance
Despite the positive rhetoric on trade talks, Lutnick affirmed that the 10% baseline tariff on all nations remains unchanged. The announcement of a U.K.-U.S. trade agreement featuring the 10% duty reinforces this stance.
“We are adamant about maintaining the 10% threshold,” Lutnick declared. He called for trust in Trump’s trade strategy, despite the limited transparency surrounding the negotiations.
“Remain optimistic and supportive,” Lutnick encouraged viewers during his appearance on “Fox News Sunday.” He expressed confidence in the President’s approach, emphasizing his credibility.
