Commerce Secretary Howard Lutnick privately frustrated with Donald Trump’s tariff strategy, fears impact on US trade deals with Canada, Mexico

Commerce secretary Howard Lutnick, US president Donald Trump's biggest cheerleader of the new tariffs, is reportedly increasingly annoyed with Trump's uncertain trade strategy, as per a report.

Howard Lutnick's Concerns with Donald Trump's Impulsive Tariff Strategy

Though he has publicly supported the tariffs, Lutnick has complained about Trump's impromptu increases in tariffs without a clear strategy for the next set of negotiations.

According to a CNN report, Lutrick has told his friends that he is "not thrilled" with Trump's approach of increasing tariffs on an impulse instead of using them for future concessions from other countries.

This annoyance was specifically shown when Trump threatened Canada with a 50% tariff on imports of steel and aluminium following Canadian Premier Doug Ford's move to respond to the US tariffs by imposing a surcharge on exports of electricity to the US, reported Fortune. Lutnick was said to have been taken aback by Trump's incendiary reaction and did some behind-the-scenes work in an attempt to cool down tensions, according to Fortune.

Lutnick Helped Cool Tensions with Canada

On March 11, Lutnick spoke directly to Ford to cool things down, as per the report. Canada then lowered the electricity tax, and the US retreated from its threat of the 50% tariff and said Canada would face the same 25% tax like other countries, as per Fortune.

Contrasting View on Tariffs in Public and Private

While Lutnick has been a vocal proponent of Trump's tariffs policies, insisting they are critical for national security purposes, but in private, he isn't a strong supporter of the president's tariffs or free market trade, according to CNN.

An anonymous executive told CNN that according to Lutnick, "If we have the power and upper hand and full strength of the US economy, why are we not using it?" as quoted by Fortune.

Worries Over USMCA Review and Future Trade Deals

While, Lutnick worries that Trump's volatile behaviour might make it more difficult to get a good deal out of Canada and Mexico, potentially having future consequences for US trade policy, as per CNN. The first review of the free-trade agreement between the countries, the United States-Mexico-Canada Agreement (USMCA), will happen in July, reported CNN.

An anonymous senior Trump advisor told CNN that, “He’d much prefer to do this as part of negotiations for USMCA,” as quoted in the report. The advisor added that “He’s afraid [Trump] has jumped the shark,” as quoted by Fortune.

White House Defends Lutnick

However, the White House spokesperson Kush Desai claimed that the commerce Secretary has been a staunch defender of Trump's economic agenda, Fortune reported.

Desai said, "Every member of the Trump administration is playing from the same playbook – President Trump’s playbook – to deliver economic prosperity for the American people," as quoted by Fortune.

FAQs

What did Lutnick say privately about Trump’s tariff strategy?
According to CNN, Lutnick is “not thrilled” with how Trump escalates tariffs without clear plans for future negotiations.

How did Lutnick react to Trump’s 50% tariff threat on Canada?
Lutnick was caught off guard by the threat and worked behind the scenes to de-escalate the situation with Canadian officials, as per the report.