Wall Street Billionaire Ratnik Appointed as Secretary of Commerce
Expected to Lead U.S. Manufacturing Revival and Counter China
Chosen as Secretary of Commerce After Treasury Secretary Competition
Donald Trump, the President-elect of the United States, has nominated Howard Lutnick, co-chairman of the transition team and CEO of investment bank Cantor Fitzgerald, as Secretary of Commerce for his second-term administration starting in January next year. The Department of Commerce led the imposition of steel and aluminum tariffs and restrictions on the use of American technology by China's Huawei during Trump's first term, and under the Joe Biden administration, it has overseen export control policies on advanced technologies such as semiconductors and artificial intelligence (AI). Lutnick, a 'tariff advocate' and a hardliner on China, is expected to lead a stronger Department of Commerce in Trump's second term, playing a key role in manufacturing revitalization, imposing ultra-high tariffs on China, and regulating advanced technologies.
On the 19th (local time), Trump announced in a statement that he officially nominated Lutnick as Secretary of Commerce.
Trump said, "I am very pleased that Lutnick will join my administration as Secretary of Commerce," adding, "He will lead the tariff and trade agenda and take additional and direct responsibility for the U.S. Trade Representative (USTR)." He further praised, "Howard, as co-chairman of the Trump-Vance (President and Vice President-elect) transition team, created the most sophisticated processes and systems to help build the greatest administration in American history."
CEO Lutnick, a native of New York, is a financial asset holder friendly to cryptocurrencies. As a major donor to Trump, he has supported him on the front lines for this election victory. Over the past two years, he donated $1 million to Trump through a super PAC (political action committee) and hosted a $15 million fundraising event at his New York residence. He has actively advocated for Trump's campaign promises, including tariff increases and strengthening the manufacturing base. Notably, CNN reported that during a rally at Madison Square Garden in New York on the 27th of last month, near the end of the election campaign, he said that America prospered most in the early 20th century when there was no income tax and only tariffs.
With Lutnick nominated as the first Secretary of Commerce in Trump's second-term administration, he is expected to play a crucial role in rebuilding American manufacturing and industry after the administration's inauguration in January next year, as well as in strategizing and executing the trade war against China. The Department of Commerce imposed tariffs on steel and aluminum and blocked the use of American technology and software by China's Huawei during Trump's first term. Under the succeeding Joe Biden administration, it has taken the lead in implementing export control measures on advanced technologies such as semiconductors and AI targeting China. In Trump's second term, the level of trade and technology pressure on China is expected to intensify, further expanding the role of the Department of Commerce. In particular, Trump promised during his candidacy to impose a universal tariff of 10% on all imports and a 60% tariff on China, and it is anticipated that the Department of Commerce will play a significant role alongside the USTR and Treasury Department in implementing these pledges.
The U.S. daily The New York Times (NYT) reported, "Wall Street executive Lutnick will promote American industry while overseeing export control measures on advanced technologies such as semiconductors against China and Russia for national security reasons." The Washington Post (WP) forecasted, "Trump plans stronger measures to curb China's technology boom, and Lutnick will play a role in formulating U.S. trade policy."
CEO Lutnick is regarded as a symbolic figure in overcoming the 9/11 terrorist attacks. Cantor Fitzgerald, which he led, was located in the New York World Trade Center (WTC) building that collapsed during the 9/11 attacks in 2001, resulting in the tragic loss of 658 of its 960 New York employees, including his own younger brother. Having escaped harm by dropping his son off at kindergarten before going to work, he defied expectations that the company would close and rebuilt it. It is known that Trump supported Lutnick in rebuilding the company. Lutnick also appeared as a judge on Trump's reality TV show "The Celebrity Apprentice," which aired from 2008. Notably, Lutnick's company manages assets of the stablecoin 'Tether,' which reportedly changed Trump's previously negative perception of cryptocurrencies by 180 degrees.
Lutnick was initially mentioned as a candidate for Treasury Secretary alongside Scott Bessent, CEO of hedge fund Key Square Group. However, factional disputes between the two within the transition team became publicly exposed, leading Trump to broaden the candidate pool and reconsider the Treasury Secretary nomination from scratch. In this process, Lutnick was ultimately selected as Secretary of Commerce. Bessent is expected to be nominated as chairman of the National Economic Council (NEC). Currently, candidates for Treasury Secretary include former Federal Reserve Board member Kevin Warsh and Mark Rowan, CEO of Apollo Global Management.
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