Washington: Two countries – India and China – have the most tariffs but no inflation, an American businessman nominated by US President Donald Trump to be his commerce secretary told lawmakers on Thursday, making a point that there is no relationship between tariffs and inflation.
“The two top countries with tariffs, India and China, have the most tariffs and no inflation, it is just nonsense that tariffs cause inflation. It is nonsense,” Howard William Lutnick, former head of Cantor Fitzgerald, told members of the Senate Commerce, Science, and Transportation Committee during his confirmation hearing.
He assured senators that the economy of the United States of America will be much, much better. “A particular product’s price may go up, but all of them, this is not inflationary,” he asserted.
Responding to questions, Lutnick said the United States is treated horribly by the global trading environment. “They all have higher tariffs, non-tariff trade barriers and subsidies. They treat us poorly. We need to be treated better. We need to be treated with respect and we can use tariffs to create reciprocity, fairness and respect,” he said.
Observing that US farmers are treated with disrespect around the world, he said: “The countries take advantage of American kindness, American gratitude that we used to rebuild the world after the World Wars and after the Korean War and after the Vietnam War. We need that disrespect to end.”
“I think tariffs are a way to create reciprocity to be treated fairly, to be treated appropriately. It will help our farmers and ranchers and our fishermen to flourish and that’s what I expect this administration is going to drive. That’s why I’m honoured to serve President Trump in his pursuit of that reciprocity and that fairness and the end of the disrespect,” he said.
“These countries have the reliance on the American economy and they need to start to respect us now,” Lutnick said, as he noted that President Trump has signed an executive order for the review of tariffs by the Department of Commerce and US Trade Representative (USTR).
“The big tariff view is going to be studied and the president launched that in an executive order where he asked the Commerce Department and the USTR to study the tariff model, long term. The short-term issue is illegal migration and worse, even still, fentanyl coming into this country and killing over 100,000 Americans,” he said.
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