Howard Lutnick, billionaire CEO of the financial institution Cantor Fitzgerald, joined CNBC’s Squawk Box this week where he highlighted how Republican presidential candidate Donald Trump’s tariff proposals will help the American economy and workers.
NEW: CNBC host verbally stunned after billionaire Howard Lutnick explains how Trump's tariffs will be used as a negotiation tactic to make the U.S. a "bunch of money."
— Collin Rugg (@CollinRugg) October 15, 2024
Lutnick shot down the media narrative that tariffs would increase inflation.
"It's a bargaining chip. We can't… pic.twitter.com/J3MJakntYc
Speaking with the mainstream media anchors, Lutnick explained how foreign nations in Europe and Asia impose 100% tariffs on American products such as GM or Ford vehicles.
He noted that if Trump were to roll out a similar tax on foreign vehicles entering the U.S., the other countries would bargain with America and bring down their tariffs on incoming American cars and trucks.
“Finally, Ford and General Motors are going to be able to sell in these places,” Lutnick stated. “Tariffs are an amazing tool for the president to use, but he [Trump] understands that you don’t tariff stuff we don’t make.”
Instead, the wealthy businessman noted Trump will “use tariffs to build in America.”
“If we want to make it in America, tariff it, or if we’re competing with it, tariff it. But, we need to protect the American worker. Finally, someone is going to protect the American worker,” he added.
One of the CNBC hosts appeared stunned at what she was hearing, telling Lutnick, “This is the best explanation I’ve heard of the tariff proposal yet.”
The billionaire went on to provide a history lesson, describing the post-World War II Marshall Plan agreement that European nations and Japan could tariff U.S. imports but America would not tariff them in an attempt to prop up their economies.
Lutnick questioned why the plan is still being implemented decades later, asking, “Why forty years are Japan and Germany and all of Europe still tariffing the heck out of our auto industry? Tariffing the heck out of our furniture industry! Do you realize all your furniture you’re buying that’s made foreign? It seems crazy! Why? Because they tariff us and we don’t tariff them. It’s so obvious.”
Trump also defended his tariff plan during a Tuesday sit-down with Bloomberg News Editor-in-Chief John Micklethwait at the Economic Club of Chicago.
“We’re going to bring the companies back with lower taxes, still further for companies that are going to make that product in the USA. We’re going to protect those companies with strong tariffs because I’m a believer in tariffs,” Trump said. “To me the most beautiful word in the dictionary is tariff. It’s my favorite word. It needs a public relations firm.”
Crowd starts cracking up after Trump roasts Editor-in-Chief of Bloomberg John Micklethwait on tariffs.
— Collin Rugg (@CollinRugg) October 15, 2024
Micklethwait: Yes, you're gonna find some people who will gain from individual tariffs. The overall effect could be massive to the economy…
Trump: I agree. I agree. It's… pic.twitter.com/lQkMi2Of0C