Howard Lutnick, President Trump's nominee to be secretary of commerce, testifies during a Senate Committee on Commerce, Science, and Transportation hearing for his pending confirmation on Capitol Hill, Jan. 29, in Washington, D.C. AP-Yonhap
President Donald Trump's nominee for commerce secretary accused Korea and Japan on Wednesday of having "taken advantage of" America's "good nature," stressing the need to work together with the allies to bring their production to the United States.
Howard Lutnick, a preeminent businessman, made the remarks during a Senate confirmation hearing, pointing to steel products from Japan and appliances from Korea, as he responded to a senator's question over what he will do to foster an environment to encourage joint ventures with U.S. allies.
"Our great allies have taken advantage of our good nature, and they like steel in Japan and appliances in Korea ... I mean, they've just taken advantage of us. It's time for them to partner with us and bring that production back home," Lutnick told the Senate Committee on Commerce, Science and Transportation.
"So I think we're going to work closely with our allies to increase their manufacturing productivity at home, and I think your way of thinking about it saying let's work together to do that and bring it home ... I think it's really important for us, and really important for our workforce," he added.
Lutnick also pointed out that he wants to bring semiconductor production back to America.
"We want to look at the supply chain and bring that back to America. We want to create those great jobs in America. So that way, we can go back to innovating, which is where we began," he said.
"Intel began the chips, right? And then the world sort of leveraged our chips. TSMC leveraged us and sort of took it from us," he added, referring to the Taiwanese tech giant.
The CHIPS and Science Act is an "excellent down payment" to begin the process of bringing semiconductor manufacturing to the U.S., he said.
"We need to study it, but we need to make sure that you get the benefit of the bargain, and (that) domestic manufacturing happens in America," he said in response to a question over whether he will continue to operate the CHIPS programs if confirmed.
Asked if he will stick to the CHIPS programs that involve distributing federal funds, Lutnick said, "We get the money out appropriately and correctly, and we build in America ... that is vital."
His remarks came amid lingering questions whether Korean businesses, which had an agreement with the Biden administration to receive federal grants and loans for their investment in the U.S., can still get the money under the new U.S. administration.
The nominee expressed a negative view on a subsidy program that a senator said allows a luxury European electric vehicle, which is not even remotely made in America, to get a $7,500 tax credit if it is leased. Korea's Hyundai Motor has benefited from the program.
U.S. Vice President J.D. Vance introduces Howard Lutnick, U.S. President Donald Trump's nominee for commerce secretary, during his Senate Committee on Commerce, Science, and Transportation confirmation hearing in the Russell Senate Office Building, Jan. 29, in Washington, D.C. AFP-Yonhap
"We have to end that," he said.
He added, "That is the example of the failed industrial policy of the United States of America. It's a failed industry policy and needs to be changed."
On tariffs, Lutnick said he prefers "across-the-board," "country-by-country" tariffs rather than targeted ones as Trump is seeking to impose new tariffs on some countries to redress America's trade deficits and address other policy issues.
"I think when you pick one product in Mexico, they'll pick one product. We pick avocados, they pick white corn. We pick tomatoes, they pick yellow corn. All you're doing is picking on farmers, which is just not going to happen," he said.
He argued that in terms of trade, the U.S. needs to be treated "better" and "with respect."
"We can use tariffs to create reciprocity, fairness and respect," he said.
In November, Trump nominated Lutnick, chairman and CEO of Cantor Fitzgerald, as his commerce secretary, saying that if confirmed, Lutnick will spearhead the tariff and trade agenda of the incoming administration. (Yonhap)