On Thursday’s broadcast of CNBC’s “Squawk Box,” Commerce Secretary Howard Lutnick responded to a question on President Donald Trump imposing tariffs on the United Kingdom and Australia, two nations that America runs a trade surplus with, by stating that “they have a goods deficit with us,” “And Australia buys a lot of our planes, which we really appreciate. But we’re really looking at the production for people to get jobs.”
Co-host Aaron Ross Sorkin asked, “Mr. Secretary, in terms of the suggestion that we’re being abused or being fair, what would you say to the United Kingdom or what would you say to Australia, where we have a trade surplus, where they could look at us and say we’re the winners of that competition, and yet we are going to tariff them?”
Lutnick responded, “Well, look, they each have the lowest rate available, right? If you really dissect the trade numbers that are made publicly, the United Kingdom, part of their trade surplus is that they have the London Metals Exchange and they count the importing of bullion. Come on. So, if you really dissect these things, you realize they have a 20% VAT, okay, and these things, but they work hard to have a balance of business with us –.”
Sorkin then cut in to ask, “So, we don’t have a trade surplus with them. They’re raping us too?”
Lutnick answered, “Well, if you looked at them and really studied it, you’d see they have a goods deficit with us, right? And Australia buys a lot of our planes, which we really appreciate. But we’re really looking at the production for people to get jobs.”
Follow Ian Hanchett on Twitter @IanHanchett
Read the full article here
