Recession is 'Worth It' to Make Trump Policy Great, U.S. Commerce Secretary Says
1min read U.S. Commerce Secretary Howard Lutnick defended President Trump's tariff policies on Tuesday, insisting they are necessary even if they lead to a recession.
"These policies are the most important thing America has ever had," Lutnick told CBS News when asked whether they would still be worth it if they triggered an economic downturn. "It is worth it."
Lutnick quickly dismissed concerns about a recession, attributing any potential downturn to the previous administration. "The only reason there could possibly be a recession is because of the Biden nonsense that we had to live with," he said.
Trump has not ruled out the possibility that his policies, particularly tariff increases, could impact the economy. In a recent interview with Fox News, he acknowledged the potential for a transitional period. "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 it takes a little time. But I think it should be great for us," Trump said.
The administration's recent tariff announcements on Canada, Mexico, and China have unsettled the stock market, fueling concerns of an economic slowdown. On Tuesday, Trump briefly threatened to double tariffs on Canadian steel and aluminum imports in response to Ontario premier Doug Ford's plan to impose a retaliatory surcharge on U.S. electricity exports. However, after ford backed down, Trump reversed course, agreeing to talks in Washington about renewing the U.S.-Mexico-Canada Agreement (USMCA).
Lutnick defended Trump's aggressive trade tactics, arguing that short-term tariff threats are part of a broader strategy. "When you're negotiating with someone and they're not paying attention, the president, who's the best dealmaker ever to sit in that chair, is going to say, 'Here's my response,'" Lutnick said. "And then all of a sudden, shockingly, they respond."
Addressing concerns about the unpredictability of Trump's tariff approach, Lutnick pushed back. "It is not chaotic, and the only one who thinks it's chaotic is someone who's being silly," he said. "Let the dealmaker make his deals."
He cited Tuesday's confrontation with Ontario's premier as an example of Trump's negotiating prowess. "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... by a tweet and a Truth Social post. And you think that's chaotic?"
Lutnick argued that markets and foreign leaders would eventually adapt to Trump's methods. "Within a short period of time, they'll realize it doesn't need to be this way. Let's just do it the grown-up way, 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?'"
