Secretary of Commerce Discusses Reshoring and Automation

On Wednesday, Secretary of Commerce Howard Lutnick participated in a policy discussion on Breitbart News, where he touched on reshoring, supply chain weaknesses, and the future of automated manufacturing in the U.S.

Lutnick highlighted the role of automation in reshoring, stating, “The opportunity is that manufacturing is becoming automated, and automated manufacturing is perfect for the United States. We don’t have a billion people, right? I think we need to become more high-tech thinking to function this way.”

Regarding his reshoring strategy, Lutnick suggested that not all manufacturing needs to return to the U.S., but modern technology offers new possibilities. “There are things that should be made overseas, like sandals and cheap T-shirts. We’re fine with that,” he noted. However, he stressed that advanced robotic technology could facilitate significant domestic manufacturing.

Lutnick made a distinction between different types of robotics, clarifying that the automated systems he envisions aren’t humanoid robots. “Close your eyes and imagine a modern car factory with an arm that drills holes like that,” he explained.

He cautioned against excessive dependence on hostile entities, remarking, “Just as we are not going to bring Chinese electric cars into this country, we are not going to bring Chinese humanoid robots into this country.” Lutnick expressed worry that vehicles and components made in China could be disabled remotely during conflicts.

He extended this vulnerability to the pharmaceutical sector, stating, “Before this job, I don’t think you could open my medicine cabinet and find any brand-name medicines. All of these generic versions are made in China. If we were hostile, why do you think you can make them number one? And if you get it, why would you be willing to take this drug in a hostile moment? Having to make it here means we have to look at all the ingredients and make sure they’re all made here.”

Speaking about his responsibilities, Lutnick said, “My job is to look at every item and say, ‘Okay, where is this? Where is this?'” This involves everything from critical minerals to the supply chains for components.

He illustrated his point with an example of magnets used in vehicles, explaining how access to small yet vital components can create significant issues. “They put magnets in cars, and the average price of magnets in cars is $20. They sell it by the pound. $55 per pound. This is not high-tech,” he clarified. “But it’s like I give you a really nice bookshelf for Christmas, but I don’t give you an Allen wrench. It costs a dollar to put it together, right? And they say, ‘We’re not going to send you magnets,’ and they make it all for you. It’s like I don’t send you your car keys. You can’t start your car.”

Lutnick expressed optimism about the administration’s coordinated effort to tackle these “challenges.” He remarked, “I thought that was a huge benefit because it woke us up and we thought, ‘We’ve got to fix this.’ I have been doing everything I can for the last four years, and the whole government is working together to make sure that all the challenges are removed over the last four years.”