Trump Commerce Secretary Stuns Republican Senator By Undercutting Trump’s Justification For Sweeping Tariffs

 

Commerce Secretary Howard Lutnick stunned Republican Senator John Kennedy (R-LA) during a Senate hearing on Wednesday when answering questions about President Donald Trump’s sweeping global tariffs. Kennedy grilled Lutnick after the Trump cabinet member appeared to undercut Trump’s stated goal for the tariffs – to bring down other countries’ trade barriers on the U.S.

Kennedy asked at one point during their exchange, “If Vietnam, for example, came to you tomorrow and said, okay, Mr. Secretary, you win, we’re going to remove all tariffs and all trade barriers. Would the United States please do the same? Would you accept that deal?”

“Absolutely not. Absolutely not,” Lutnick replied. “That would be the silliest thing we could do.”

“Why is that?” pressed Kennedy, who has publicly raised concerns about Trump’s tariffs hurting free trade.

“Vietnam has $125 billion exports to us and imports from us $12.5 million. And you’re thinking, Vietnam exports 125 billion?”

Kennedy replied, “I’m aware of the figures, but tell me why you–”

Lutnick cut in, “But where do they get it from? They buy 90 billion from China, then they mark it up and send it to us. You’re just a pathway of China to us! You wouldn’t even–”

Kennedy pushed, “So you wouldn’t accept that deal.”

“No, it’s a terrible deal. We’re the one with money, we’re the one with the store. Of course, they want us to take down,” Lutnick replied.

A stunned Kennedy followed up, “What’s the purpose of reciprocity then? Is reciprocity not one of your goals? Are you telling the president that we shouldn’t seek reciprocity? If that’s what you’re telling him, why are you trying to do these trade deals?

Lutnick replied, “What do we want? We want to encourage Vietnam to produce products. They’re great at producing.”

Kennedy pushed Lutnick to answer his question, “But I want to get back to reciprocity. You just said you don’t believe in it. You don’t accept reciprocity as a goal. What are you negotiating in these trade deals?”

“Why would we open our bank account?” Lutnick replied as Kennedy spoke over him to demand, “Why are you negotiating trade deals?”

“You’re trying to get other countries to lower their tariffs and trade barriers in return for us lowering ours!” insisted Kennedy.

“That’s true for the things that they’ll take from us,” Lutnick replied.

“That’s called reciprocity,” Kennedy insisted as Lutnick agreed, “Of course.”

“So are you or are you not seeking reciprocity in these trade deals?” Kennedy pushed again.

Lutnick replied, “We are absolutely seeking reciprocity with respect to things that can be reciprocal. But when they’re importing from China and sending it to us, they’re not.”

Kennedy hit back, “You just said that if a country came to you and offered you the ultimate reciprocity, no tariffs, no trade barriers in return for us doing the same, you would reject that.”

“Of course, because they buy from China and send it to us. Don’t you agree with me?” Lutnick replied.

Kennedy shot back, “Suppose they said we won’t buy from China.”

Lutnick replied, “Now we’re talking. Now we are talking. If it was Vietnam–”

Kennedy demanded, “Would you accept that deal?

“We would consider it,” Lutnick replied, arguing that some products he wants brought back to the U.S. for production.

Watch the clip above.

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Alex Griffing is a Senior Editor at Mediaite. Send tips via email: alexanderg@mediaite.com. Follow him on Twitter: @alexgriffing