Howard Lutnick Claims Tariffs Will Spark Up to 1.5 GDP Growth
Source: Newsweek
Published Jul 20, 2025 at 4:29 PM EDT
During an interview appearance on CBS News' Face the Nation on Sunday, Commerce Secretary Howard Lutnick said President Donald Trump's sweeping new tariffs would drive as much as 1.5 percent gross domestic product (GDP) growth and open hundreds of billions in export opportunities. Lutnick also outlined the administration's timeline for renegotiating major trade deals, challenged European threats of retaliatory tariffs, and accused Federal Reserve chair Jerome Powell of inflicting economic pain on Americans through high interest rates.
Why It Matters
The Trump administration's latest round of tariffsincluding a general 10 percent levy on U.S. imports and even higher rates on key trading partnersmarks an expansion of trade policy intended to address longstanding U.S. trade deficits.
Business and policy analysts have expressed concern about the impact tariffs would have since they're expected to lead to higher prices on imported goods, which could spur inflation and potentially dampen consumer spending.
What To Know
Lutnick projected that the new tariffs and subsequent trade negotiations could deliver between $300 and $400 billion of opportunity. "That's up to 1.5 percent GDP growth because the president's going to open all these markets up," he told host Margaret Brennan. The commerce secretary added that Trump's tariffs would force countries across the globe to "open their markets" to the U.S., which would allow American businesses to expand and sell overseas.
Read more: https://www.newsweek.com/commerce-secretary-howard-lutnick-tariffs-spark-gdp-growth-2101422
No they won't. It'll just piss them off more and they will start boycotting our stuff (like some are already doing). China makes most of the day-to-day stuff that people buy and "the world" will keep buying from China (and leave us out). Then they will set up trade agreements between each other.
He needs to stop listening to Navarro.

eppur_se_muova
(39,454 posts)Deminpenn
(16,920 posts)(very good explanation and examples)
https://www.investopedia.com/terms/g/gdp.asp
Real GDP is an inflation-adjusted measure that reflects the number of goods and services produced by an economy in a given year, with prices held constant from year to year to separate out the impact of inflation or deflation from the trend in output over time. Since GDP is based on the monetary value of goods and services, it is subject to inflation.
Rising prices tend to increase a countrys GDP, but this does not necessarily reflect any change in the quantity or quality of goods and services produced. Thus, by looking just at an economys nominal GDP, it can be difficult to tell whether the figure has risen because of a real expansion in production or simply because prices rose.
Economists use a process that adjusts for inflation to arrive at an economys real GDP. By adjusting the output in any given year for the price levels that prevailed in a reference year, called the base year, economists can adjust for inflations impact. This way, it is possible to compare a countrys GDP from one year to another and see if there is any real growth.
Real GDP is calculated using a GDP price deflator, which is the difference in prices between the current year and the base year. For example, if prices rose by 5% since the base year, then the deflator would be 1.05. Nominal GDP is divided by this deflator, yielding real GDP. Nominal GDP is usually higher than real GDP because inflation is typically a positive number.2
Real GDP accounts for changes in market value and thus narrows the difference between output figures from year to year. If there is a large discrepancy between a nations real GDP and nominal GDP, this may be an indicator of significant inflation or deflation in its economy.
Bernardo de La Paz
(57,171 posts)They compete for anatomy licking, praising the orange anus without fail. Lutnick continues to say that there will be tons of trade deals and the US people will love them all. Just like "90 days 90 deals". But July 9 has passed.
People can already see that export markets are not opening up, they are closing down. When a country can't sell its products in the biggest market (US), they can't buy from the US. tRump, the self-described economic genius, can't see what Henry Ford saw: if you take care of the prosperity of your workers, they can buy your product. Same goes for the suppliers.
tRump thinks he is creating jobs by onshoring. His tariffs are high on apparel manufacturing countries. Good ole maga boys don't want those jobs, which take stability and a lot of time to onshore. Look forward to shelves particularly bare of toys and clothing. Unsatisfied demand increases inflation.
Canada, Brazil, and the EU are all making deals around the US, not with the US.
sinkingfeeling
(55,933 posts)Ol Janx Spirit
(339 posts)...tariffs and the threat of them will have some of the positive impacts the Administration hopes they will. America is a huge economic power in today's world and certainly has a lot of leverage and economic cards to play here. Any country or market where America buys a lot of goods is vulnerable to changes in American trade policy, and they may very well want to find ways to open their markets to more American goods in the interest of their own market stability. That could be a good thing for segments of the American economy.
But the truth is also that it will not work out in exactly the way anyone predicts. Much like the weather, the global economy is a complex system of inputs and outputs that are linked in a myriad of ways that no one fully understands. The impact of changing those inputs and outputs are only known after they change--sometimes long after.
One thing that is predictable, however: the rich will get richer. And it is entirely unclear if that will mean anything positive for the average American or not. China did not really become a global powerhouse because of U.S. trade policy. Its rise was driven by their focus on creating a manufacturing base with access to both cheap labor and raw materials that was attractive to American companies seeking maximum profit. Corporations didn't lobby writ large to keep jobs in America--quite the opposite.
So now one can easily see a scenario where the American manufacturer with a patent on a product they've designed and contracted a manufacturing facility in China to produce on their behalf gets new markets opened up for them by American trade policy, and they just divert more of those same products made in the same Chinese factories to their newfound global markets rather than bothering to even ponder opening an American manufacturing facility.
So, we may not know how this will play out, but we can fairly easily predict who the biggest winners will be no matter what happens.
ProudMNDemocrat
(19,896 posts)How easily Americans are being duped that the country exporting goods to the US are paying the higher costs, when the opposite is actually true. American consumers are being forced to pay the higher costs as markets close for American manufacturers.
Take the Farmers of this country, as well as the Corporate farms. NO workers and NO markets to sell their crops means prices go up and product shortages. Why is that so hard to comprehend? Perhaps Americans prefer to be LIED to so that they have something to pin on Democrats and continue to vote for Republicans.
Talk about a fucking circus!
sabbat hunter
(7,011 posts)When asked if they will cause prices to rise at the store level, he just ignores the question and says "well if they bring production home to the US, there will be no tariff".
What boggles my mind is that the MAGAites think that we can just snap our fingers and boom we have fully operational factories in the US for all consumer products, from automobiles to textiles, and everything in between.
sabbat hunter
(7,011 posts)still claiming that the other countries are paying the tariffs, not the US consumers. If asked about it, he just answers a different question that wasn't asked.