President-elect Trump plans to appoint Howard Lutnick, CEO of Cantor Fitzgerald LP, to lead the Department of Commerce, which will be a core figure in a government potentially oriented towards comprehensive tariff proposals.

"I am excited to announce that Howard Lutnick, the chairman and CEO of Cantor Fitzgerald, will join my government as Secretary of Commerce. He will lead our tariff and trade agenda and will be directly responsible for the Office of the United States Trade Representative," Trump posted on Truth Social on Tuesday.

63-year-old Lutnick is one of Trump's most prominent supporters on Wall Street, advocating for his connections to the financial sector and supporting his populist agenda. He has traveled across the country supporting Trump, decrying the outsourcing of American manufacturing jobs, criticizing "coastal elites' nonsense on electric vehicles," and denouncing high inflation as "the most despicable thing you can do to your people."

As co-chair of Trump's transition team, Lutnick played a frontline role in preparing for the incoming president to regain power and push his conservative agenda alongside a team of like-minded loyal supporters.

The Department of Commerce serves as a liaison between the federal government and the private sector and will play a key role in advancing Trump's policies. The agency's main goal is to promote domestic jobs and economic growth.

This news partially calmed the public feud between hedge fund manager Scott Bessent and Lutnick, as both had previously sought the Treasury Secretary position. Lutnick won the support of billionaire entrepreneur Elon Musk, who posted on X over the weekend that the Cantor Fitzgerald CEO would "truly bring change."

According to insiders, infighting has frustrated Trump, who is currently considering other candidates for the top economic position of Treasury Secretary. Insiders say Trump plans to meet with former Federal Reserve Governor Kevin Warsh in the next day or two. Also under Trump’s consideration are Marc Rowan, CEO of Apollo Global Management Inc., and Senator Bill Hagerty from Tennessee. Insiders say Bessent discussed the positions of Treasury Secretary and Director of the National Economic Council with Trump last week.

Tariff plan

After Trump announced his nominee for the Department of Commerce, Lutnick gained significant power over the White House's trade and tariff agenda, which is central to the president-elect's economic plan.

Trump has proposed a baseline tariff of 10% or 20% on all imported goods, with tariffs of up to 60% on imports from China, one of the United States' major suppliers. Other potential targets for additional tariffs include cars from Mexico and countries that abandon the use of the dollar.

Some economists predict that Trump's tariff proposals could have inflationary effects on consumers.

Nevertheless, according to Bloomberg Economics, despite the former president imposing a 25% tariff on hundreds of billions of dollars worth of Chinese goods during his first term, the ultimate impact remains unclear. Biden has retained most of Trump's tariffs, and even added some additional taxes on semiconductors and electric vehicles from China.

During Biden's administration, the Department of Commerce has been busy implementing a series of industrial policy bills, including allocating federal funds for the semiconductor manufacturing industry.

Lutnick, a veteran of Wall Street, will lead the White House's "tariff and trade agenda." He must be confirmed by the Senate.

"Apprentice" guest

Lutnick graduated from Haverford College and joined Cantor Fitzgerald in 1983, becoming the company's president and CEO in 1991. His brother, Gary Lutnick, was one of the 658 Cantor employees who died in the September 11 attacks.

He was a guest on Trump's reality show, Celebrity Apprentice, and as he was on the path to being elected president, he was at the center of many circles of money and power—higher than many other Wall Street executives. He occupies an important position in the ecosystem surrounding Trump and his loyal supporters of "Make America Great Again."

With the support of congressional Republicans, Trump vowed to repeal the climate bill signed by Biden, which likely means a reduction in federal funding for green projects. However, repealing the law known as the Inflation Reduction Act may be difficult, as some of its incentives are popular with oil companies and other core Republican voters.

The Department of Commerce is also the parent agency of the Bureau of Economic Analysis and the Census Bureau, with the Bureau of Economic Analysis responsible for developing key inflation indicators favored by the Federal Reserve, and the Census Bureau responsible for publishing its namesake decennial survey report and other reports on economic conditions.

The Trump administration prematurely ended the 2020 Census before its last term, sparking dissatisfaction among some civil rights organizations. Additionally, he attempted to exclude undocumented immigrants from the Census, but was unsuccessful, as the Census is used to allocate congressional seats and federal funds.

Lutnick is also a supporter of the cryptocurrency industry, and his company has been the reserve custodian for the stablecoin Tether.

Article reposted from: Golden Ten Data