Howard Lutnick: Trump’s Reciprocal Tariffs Will Reshape the Economy

Commerce Secretary Howard Lutnick made it clear: the U.S. economy is about to change dramatically under President Trump’s new reciprocal tariff strategy. Speaking on The Ingraham Angle, Lutnick outlined how Trump’s policies will shift the burden from American taxpayers to foreign entities that benefit from the U.S. economy without paying their fair share.

Lutnick criticized Democrats’ obsession with taxation, arguing that Trump’s approach is fundamentally different. “The people who live and breathe off our economy—these foreign companies, these foreign countries—they’re going to start to pay,” he stated. Instead of relying on domestic tax increases, the administration plans to implement an “external revenue service” to replace the Internal Revenue Service (IRS) by generating funds from tariffs rather than taxing Americans.

April 2nd: A Turning Point for Trade

Lutnick revealed that on April 2nd, President Trump will officially announce his reciprocal tariff policy, ensuring that foreign nations treat the U.S. the same way they expect to be treated. Countries like India and China, known for their high tariffs on U.S. goods, will face the same restrictions when exporting to America.

Advertisement

This will take on India, which has huge tariffs, China which has huge tariffs,” Lutnick explained. More importantly, he noted that tariffs do not necessarily cause inflation, as seen in nations with much higher tariff rates than the U.S. but lower inflation.

Lutnick also emphasized that Trump’s fentanyl tariffs are not just about trade—they’re about stopping drugs. The U.S. needed Canada and Mexico to step up, while China must end the production of fentanyl precursors. If these nations fail to act, tariffs will remain in place. “If they don’t break fentanyl, then this tariff continues,” Lutnick declared, making it clear that Trump won’t back down on the issue.

Bringing Jobs and Manufacturing Back to America

Lutnick also addressed the threat of Chinese companies attempting to manufacture goods in the U.S. to bypass tariffs. He dismissed the idea outright, referencing the lyrics of Amy Winehouse’s “Rehab”: “That’s what I call an Amy Winehouse, which is no, no, no.” He warned that allowing Chinese automakers to build in the U.S. would devastate American industries.

Advertisement

Instead, he outlined Trump’s plan to bring jobs back, pointing to semiconductors, pharmaceuticals, and auto manufacturing as key industries making a comeback. He highlighted that 10,000 jobs returned to the U.S. in Trump’s first month, with many more to follow. “Imagine when he starts doing reciprocal tariffs—they’re going to come in the hundreds of thousands,” he predicted.

Lutnick also dismissed New York Times claims of cabinet tensions between Elon Musk and Marco Rubio, calling them false. He praised Trump’s leadership, explaining that the goal is to cut government waste carefully while keeping talented workers in key roles.

With Trump’s economic strategy taking shape, Lutnick is confident: foreign nations will pay their fair share, and American industries will thrive once again.

Advertisement