Donald Trump has named Howard Lutnick, a Wall Street businessman, as the next Secretary of the Department of Commerce. In his announcement, Trump praised Lutnick, the CEO of financial firm Cantor Fitzgerald, as a “dynamic force on Wall Street for more than 30 years” and highlighted his leadership on the administration’s “tariff and trade agenda.”
Lutnick’s nomination follows months of speculation. Initially considered for Treasury Secretary, he faced competition from hedge fund manager Scott Bessent. His appointment to Commerce also came as a surprise, beating out Robert Lighthizer, Trump’s former U.S. Trade Representative, and Linda McMahon, the former head of the Small Business Administration. Both Lighthizer and McMahon were recently informed that Lutnick was Trump’s choice to head the Commerce Department.
The Department of Commerce, while smaller than the Treasury Department, plays a crucial role in areas where business and national security intersect. The Secretary’s responsibilities include supporting U.S. businesses, negotiating trade agreements, and fostering foreign investment. Beyond its role in the US-China trade and tech war, its responsibilities include patent approvals, publishing economic data, and conducting the US census. The department also investigates anti-dumping and anti-subsidy cases, often leading to punitive tariffs designed to protect domestic industries.
Fearing that Beijing could exploit American technology to enhance its military capabilities, both the Trump and Biden administrations have aggressively used the Commerce Department’s authority to regulate the flow of U.S. and foreign technologies to China. This effort has particularly focused on semiconductors and the equipment used to manufacture them. Over the past two years, the U.S. has implemented sweeping export controls on advanced chips and chipmaking tools, curtailing China’s access to cutting-edge artificial intelligence technologies and next-generation semiconductor production equipment.
During Trump’s first term, former Commerce Secretary Wilbur Ross was a central figure in the U.S.-China trade war and a vocal advocate for higher tariffs—an agenda Lutnick has also embraced. Lutnick has not been outspoken about China compared to other figures in the administration. However, he is a staunch advocate for tariffs, particularly targeting China. Trump’s campaign pledge to impose a 60% tariff on goods from China and a 10% tariff on goods from other countries aligns closely with Lutnick’s views. In a recent podcast interview, Lutnick emphasized his support for revenue-driven trade policies, saying, “Don’t tax our people. Make money instead. Put tariffs on China and make $400 billion.”
The next Commerce Secretary will be tasked with enforcing a range of regulations aimed at restricting China’s technological advancements, particularly in artificial intelligence and semiconductors. This includes efforts to keep major Chinese firms, such as Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC), several steps behind their global competitors in key tech sectors.
