On Tuesday, the Senate cast a pivotal vote, confirming Howard Lutnick as President Trump’s commerce secretary with a count of 51 to 45. This appointment positions him as a key figure in the administration’s economic strategy, primarily focusing on tariffs and protectionism.
Previously the CEO of Cantor Fitzgerald, a notable financial services company, Lutnick has become a significant economic advisor to Trump over the past year, spearheading his transition team. He’s consistently advocated for using tariffs to shield U.S. businesses from abroad, supported reducing corporate taxes, and pushed for increased energy production.
In his role as commerce secretary, Lutnick will handle a diverse agenda, notably defending U.S. business interests globally and managing constraints on technology exports to countries like China.
During his confirmation hearing last month, Lutnick emphasized a firm approach toward overseeing technology sales to China. He highlighted a specific case involving DeepSeek, a Chinese startup utilizing AI technology, which benefited from Meta’s open platform and technology from U.S. firm Nvidia. He expressed firm intentions to back export controls with tariff threats, asserting, “We need to stop helping them. I’m going to be very strong on that.”
As the U.S. resumes negotiations with China, Lutnick is expected to be a pivotal player. President Trump has tasked him with leading the Office of the United States Trade Representative’s efforts, a critical component of trade policy.
Lutnick takes on this role as the President has already begun disrupting the global trading landscape. This includes threats of tariffs on Canada and Mexico, enacting tariffs on China, and exploring reciprocal tariffs for all U.S. trading partners. The Commerce Department will collaborate with other agencies to establish tariff rates for different countries.
He will also manage and possibly reshape initiatives prioritized by the Biden administration, such as subsidies for U.S. chip manufacturers under the 2022 CHIPS and Science Act and expanding broadband internet to over 6.25 million homes and locations nationwide.
Given his substantial wealth and extensive connections, Lutnick’s appointment raises potential conflict of interest concerns. His leadership could influence government policies affecting businesses and markets, potentially benefiting his former associates.
For instance, Lutnick’s interests span to the mining sector in Greenland via Cantor Fitzgerald’s investment in Critical Metals. This company aims to start mining metals and minerals in Greenland by 2026. President Trump has even proposed the U.S. purchase Greenland, a self-governing region within Denmark.
Lutnick’s recent financial disclosure reveals his involvement in over 800 firms and substantial earnings from his extensive network of financial services and real estate ventures, over $350 million in the last two years alone.
His long tenure on Wall Street brought him into the national spotlight, notably when Cantor Fitzgerald, where he was president and CEO, lost many employees in the September 11, 2001, terrorist attacks.
