 "US Commerce Secretary Howard Lutnick walks near the White House in Washington, DC, US, March 13, 2025. File Image/Reuters")
Howard Lutnick, the former CEO of Cantor Fitzgerald and now United States Commerce Secretary under Donald Trump, has become the face of the administration’s aggressive tariff policies.
As the architect and vocal advocate of the controversial “Liberation Day” tariffs, he has championed these measures as essential to balancing the US budget and reducing trade deficits.
While some within the administration see him as a key strategist, others view him as a liability, particularly as economic concerns mount and markets react negatively to the unfolding trade war.
Despite concerns from business leaders and economic analysts, Lutnick has maintained that tariffs will be beneficial for the country.
He has argued that they will generate revenue for the government, even though this revenue ultimately comes from American businesses paying the tariffs and consumers absorbing higher costs.
His insistence on the necessity of these trade measures has made him both a key ally of Trump and a potential scapegoat should economic instability follow.
Howard Lutnick ‘under fire’
While trade adviser Peter Navarro has long been known for his support of tariffs, Lutnick has emerged as an influential voice, reportedly encouraging even more aggressive policies, reported Politico. However, this has led to internal tensions within the administration.
US Treasury Secretary Scott Bessent has been described as a “measured voice” in the discussions, advocating for a more selective approach. Several officials have voiced concerns that Lutnick’s push for sweeping tariffs is exacerbating economic uncertainty.
According to multiple sources, dissatisfaction with Lutnick is widespread. His frequent presence in the Oval Office and his influence over Trump’s trade policies have raised eyebrows among White House officials.
Speaking to Politico, one insider described the growing frustration, stating that Lutnick has been “pushing more aggressive tariffs” and providing “bad advice” to the president. Another likened the situation to being “like a mosquito at a nudist colony – where do you even start?”
His critics believe that should the economy falter due to the tariffs, he will be the most likely to take the blame. White House insiders told Politico that Lutnick’s role as Commerce Secretary has made him the de facto fall guy for any negative fallout.
Some within the administration believe that if the markets plummet, or if businesses suffer substantial losses, Lutnick’s position could be at risk.
White House officials, however, continue to defend him publicly. “Every member of the Trump administration is aligned on finally levelling the playing field for American industries and workers,” White House spokesperson Kush Desai said.
“President Trump has assembled the best and brightest trade team in modern American history to reignite American Greatness.”
Lutnick remains convinced
Trump’s upcoming tariff measures remain a source of concern for businesses, investors, and global trade partners. A 20 per cent across-the-board tariff, reportedly considered as a “worst-case scenario,” could have far-reaching consequences.
According to a Moody’s analyst, such a policy would disproportionately affect lower-income consumers, increase costs for businesses reliant on imports, and potentially lead to a recession , reported The Washington Post. Stock market volatility has already been apparent, with previous tariff announcements causing market downturns.
Lutnick, however, remains resolute in his stance. “Donald Trump is bringing growth to America. I would never bet on recession. No chance,” he stated during an appearance on NBC’s “Meet the Press.”
Meanwhile, Trump himself has taken a more cautious tone, telling 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.”
The new tariffs, set to be announced on “Liberation Day,” will take effect immediately, but their full economic impact will only become clear in the days and weeks following.
Some businesses hope the consequences will be swift and severe enough to prompt a reconsideration of the policy, but White House officials suggest that Trump prefers uncertainty and leverage in trade negotiations.
“Trump likes the shock and awe,” a White House official told Politico. “Each country needs to panic and call. … Trump wants to hear you grovel and say you’ll cut a deal.”
What we know about Howard Lutnick
Before joining the Trump administration, Lutnick built a successful career in finance. He began his journey at Cantor Fitzgerald in 1983 and quickly rose through the ranks, becoming CEO in 1991. Under his leadership, the firm became one of the dominant players in stock and bond trading.
His career, however, was profoundly shaped by the events of September 11, 2001, when Cantor Fitzgerald, headquartered in the North Tower of the World Trade Center, lost 70 per cent of its workforce in the attacks.
Lutnick himself narrowly avoided the tragedy because he was taking his son to his first day of kindergarten. His brother, Gary, was among the victims.
Over the years, Lutnick expanded his wealth through strategic business moves, real estate investments, and political contributions. While he donated to multiple candidates in the 2016 presidential race, including Jeb Bush and Hillary Clinton, he was known as a longtime friend of Trump.
Following Trump’s victory at the time, Lutnick was asked in an interview with CNN whether he would join the administration, to which he responded, “You know what? I’ve known him a long time. And I’m rooting for him and hoping great things happen to America.”
Months later, he donated $1 million to Trump’s 2017 inauguration and continued to be a major fundraiser. In 2019, he hosted a high-profile fundraiser in Manhattan for Trump’s re-election campaign.
During the 2024 campaign, he donated $5 million to Trump’s PAC and hosted an event that raised $15 million in August. Just days after that fundraiser, Trump announced that Lutnick would co-chair his transition team .
Now, as US Commerce Secretary, Lutnick finds himself in a role that traditionally focuses on increasing exports for US businesses. However, his tenure has been defined by a trade policy that threatens to restrict trade rather than expand it.
His frequent television appearances, including an endorsement for Tesla stock on Fox News, have drawn additional scrutiny, with critics questioning whether he is fit for such a high-profile policy position.
With the “Liberation Day” tariffs set to take effect, the stakes for Lutnick and the Trump administration have never been higher. If the economy suffers, he is likely to bear much of the blame.
With inputs from agencies