US Commerce Department Nominee Says "Manufacturing Production of Allies Like Han and Il Should Be Brought to the US"

"Korea and Japan Have Taken Advantage of U.S. Goodwill...
No Tariff Exceptions"

Howard Lutnick, nominee for Secretary of Commerce in the U.S. Donald Trump administration, stated that allied countries such as Korea and Japan should be pressured with tariffs to increase manufacturing production within the United States.

At a Senate confirmation hearing on the 29th (local time), Lutnick claimed, "Allies have taken advantage of our (U.S.) goodwill," adding, "Japan has used us in steel, and Korea has used us in home appliances."

He further stated, "Now it is time for them to cooperate with us and bring production back to the United States," and "I believe our allies will cooperate to increase productivity within the U.S."

This was in response to a question about "what will be done to encourage joint investments for economic growth between allied countries such as Korea and Japan and the United States."

Lutnick mentioned tariffs as a means to pressure domestic production in the U.S. He said, "I think tariffs are what make companies produce products in the U.S.," and noted that allies would also be affected by tariffs.

He also commented on the CHIPS and Science Act (CSA), which provides subsidies to companies producing semiconductors in the U.S., saying that while the intent is good, a review is necessary.

He added that even if contracts related to CSA subsidies were made under the previous Biden administration, he could not be certain about payments until he reviewed the details himself.

This raises the possibility that the subsidy payment schedules for U.S. investment companies such as Samsung Electronics and SK Hynix, which hurriedly signed subsidy payment confirmation contracts before the end of the Biden administration’s term, may be subject to change.