Howard Lutnick Claims Tariffs Will Spark Up to 1.5 GDP Growth [View all]

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 tariffs—including a general 10 percent levy on U.S. imports and even higher rates on key trading partners—marks 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

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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.