Washington — Commerce Secretary Howard Lutnick defended President Trump’s economic policies Tuesday, saying they are “worth it” even if they lead to a recession.
“These policies are the most important thing America has ever had,” Lutnick told CBS News in an interview when asked whether they would be worth it if they lead to a recession. “It’s worth it.”
But he quickly added, “The only reason there could possibly be a recession is because the Biden nonsense that we had to live with. These policies produce revenues. They produce growth. They produce factories being built here.”
Mr. Trump in a recent interview with Fox News declined to rule out that his policies, including increasing tariffs, could cause a recession.
“I hate to predict things like that,” Mr. Trump told Fox News. “There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing, and there are always periods of, it takes a little time. It takes a little time, but I think it should be great for us.”
Mr. Trump’s tariff announcements on Canada, Mexico and China have rocked the stock markets and fueled concerns of an economic downturn. Canada received some welcome news Tuesday, after Lutnick told CBS News that the U.S. no longer plans to double tariffs against its northern neighbor on aluminum and steel.
Asked whether the president plans to proceed with the 50% tariffs, Lutnick replied, “No, that’s off, too. So, we’re at 25% for steel and aluminum because that’s where we were.”
The one- or two-day tariffs that are ultimately withdrawn have their purpose, Lutnick argued.
“When you’re negotiating with someone and they’re not paying attention and they’re disagreeing, the president, who’s the best dealmaker ever to sit in that chair, he’s going to say, ‘here’s my response,'” Lutnick said. “And then all of a sudden, shockingly, they respond.”
Lutnick said the markets will learn to adjust to Mr. Trump’s negotiation tactics.
He denied that there’s any chaos in the way the president has been using tariffs to pressure U.S. trading partners.
“It is not chaotic, and the only one who thinks it’s chaotic is someone who’s being silly,” Lutnick said, pointing out that Mr. Trump had warned he’d impose reciprocal tariffs.
As for the sudden announcement of the 50% tariffs on Canada Tuesday morning, Lutnick said, “He needed to break some guy in Ontario who said he was going to tax American energy 25%. The president of the United States, in the White House says, ‘Oh no, you won’t,’ and breaks him. Breaks him … by a tweet and a truth (social post). And you think that’s chaotic?”
“Let the dealmaker make his deals,” Lutnick said, adding that “within a short period of time,” any country negotiating with the U.S. will come to “realize it doesn’t need to do it this way.”
“Let’s just do it the grown-up way,” he continued, “where the biggest economy in the world says, ‘I don’t like the way you’re treating us. How about a little respect? How about a little dignity?'”
