'I prefer across the board': Trump's top tariff man favors broad duties for a range of issues — including AI
Published On Jan 29, 2025, 1:03 PM
Howard Lutnick, Trump's nominee for Commerce Secretary, advocated for broad tariffs during his confirmation hearing. He emphasized that tariffs could be applied across the board to address various economic issues, including the protection of U.S. leadership in artificial intelligence (AI). Lutnick criticized current export controls without tariff support, stating that they create an ineffective system. He suggested that broad tariffs could deter IP theft and ensure reciprocity in trade. Trump's administration is considering imposing significant tariffs on Canada and Mexico, with deadlines approaching for these decisions.
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Lutnick's stance on tariffs may create volatility in market sectors directly impacted by trade, particularly in tech and agriculture. The potential implementation of high tariffs could lead to increased costs for companies needing to import goods, thus affecting profitability. However, certain U.S. companies that focus on domestic production may benefit from such tariffs as they could face reduced competition from foreign entities. Investors should be wary of sectors heavily reliant on imports.
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