Commerce Secretary Discusses Trump’s Trade Policy

During a discussion on Breitbart News, Commerce Secretary Howard Lutnick talked about President Donald Trump’s trade strategy, which aims to shift the long-standing foreign economic dominance over the U.S. He pointed out persistent trade imbalances and highlighted the implications of foreign ownership of American assets.

In a conversation with Breitbart’s Editor-in-Chief Alex Marlowe and Economics and Finance Editor John Carney, Lutnick outlined the evolution of America’s position in the global financial landscape over the last four decades.

He reflected on the situation in 1985, stating, “Back then, our corporations were in control. We owned more of the world than it owned us, with around 150 billion shares of stock and debt.” He contrasted that robust position with current projections. “By 2025, the rest of the world is expected to have $26 trillion more in assets than us. That’s quite the change over 40 years.”

Lutnick shared a personal anecdote from his college days, explaining, “I learned that I can buy your car and wine with the dollars I print. But eventually, you get fed up, and then you devalue my dollar. That’s the cycle.” He noted that while he was taught persistent trade deficits would lead to a dollar devaluation, this did not happen. “The reality is, we keep innovating—the light bulb, the transistor, the GPU. Instead of devaluing, they’re buying us out.”

He also discussed trade negotiations, sharing insights from his talks with the president. Trump advocated for a firmer approach, suggesting Lutnick tell foreign leaders they “will not be allowed to invest in America.” When leaders propose massive investments, like $500 billion, Trump advised saying, “No, we don’t want that.”

Lutnick emphasized the unique position of the U.S. in the global economy, noting that it allows for significant decisions. “When they ask about alternatives for their investments, the truth is, there’s nowhere better than here. We have to balance that, and that’s precisely what’s unfolding.”

To illustrate the intricate economic relationship between American ingenuity and foreign production, he likened it to two islands. “One island is home to brilliant inventors, while the other is where everything they create is produced. When the genius buys from the producer, it creates a cycle. Eventually, the genius may become an engineer for them because all resources are being amassed from below.”

Finally, Lutnick acknowledged Trump as a singular political figure who recognized these issues early. “He was discussing this in the ’80s when no one else would. He’s the only one who really addressed it. And honestly, if you thought I knew about tariffs before working with him, you’d be mistaken.”