WASHINGTON — President-elect Donald Trump has chosen Howard Lutnick, head of the brokerage and investment bank Cantor Fitzgerald and a cryptocurrency enthusiast, as his nominee for Commerce secretary.
The nomination would put Lutnick in charge of a sprawling Cabinet agency with a broad range of responsibilities, such as funding new computer chip factories, imposing trade restrictions, releasing economic data and monitoring the weather. It is also a position in which connections to CEOs and the wider business community are crucial.
Lutnick, a co-chair of Trump’s transition team, once appeared on Trump’s NBC reality show, “The Apprentice.” He has become a part of the president-elect’s inner circle.
Here are things to know about the billionaire who, if confirmed by the Senate, will lead the Commerce Department.
Elon Musk wanted him for the post
Elon Musk and others in Trump’s orbit called on Trump last week to dump Scott Bessent, the previous front-runner for Treasury secretary, in favor of Lutnick. Musk said in a post: “Bessent is a business-as-usual choice, whereas @howardlutnick will actually enact change.”
The Treasury role has been at the center of high-profile jockeying within the Trump world. At the same time, the position is closely watched in financial circles, where a disruptive nominee could have immediate negative consequences on the stock market, which Trump watches closely.
The major remaining contenders for the role are believed to be Bessent, former Federal Reserve board Gov. Kevin Warsh, Apollo Global Management Chief Executive Marc Rowan and Tennessee Sen. Bill Hagerty, Trump’s former ambassador to Japan.
Supports Trump’s tariffs plans
Lutnick is an advocate for imposing wide-ranging tariffs.
During his campaign, Trump proposed a 60% tariff on goods from China — and a tariff of up to 20% on everything else the United States imports. Trump portrayed the taxes on imports as both a negotiating tool to hammer out better trade terms and as a way to generate revenue to fund tax cuts elsewhere.
Lutnick gave full support for Trump’s tariffs plan in a CNBC interview in September: “Tariffs are an amazing tool for the president to use — we need to protect the American worker.”
Mainstream economists are generally skeptical of tariffs, considering them a mostly inefficient way for governments to raise money and promote prosperity and noting that it is consumers who most often pay the price.
His brother and employees died on Sept. 11
Lutnick’s brother, Gary Lutnick, and 658 Cantor Fitzgerald employees were killed in the Sept. 11, 2001, attack on the World Trade Center in New York. The firm lost two-thirds of its employees that day. Lutnick is a member of the board of directors of the National September 11 Memorial & Museum, the Partnership for New York City.
After Cantor Fitzgerald settled a wrongful death and personal injuries case against American Airlines and insurance carriers in 2013 for $135 million, Lutnick said: “For us, there is no way to describe this compromise with inapt words like ordinary, fair or reasonable. All we can say is that the legal formality of this matter is over.”
Trump’s Tuesday announcement of the Cabinet nomination mentioned Lutnick’s loss — stating he was “the embodiment of resilience in the face of unspeakable tragedy.”
A major supporter of cryptocurrency
Lutnick is a proponent of advancing aims of the cryptocurrency industry — namely, the cryptocurrency Tether.
Cryptocurrencies are forms of digital money that can be traded over the internet without relying on the global banking system. Bitcoin is the most popular cryptocurrency.
“Bitcoin is like gold and should be free trade everywhere in the world,” Lutnick said at a bitcoin conference earlier this year. “And as the largest wholesaler in the world we’re going to do everything in our power to make it so. Bitcoin should trade the same as gold everywhere in the world without exception and without limitation.”
Trump has taken on a favorable view of cryptocurrencies — from announcing in May that the campaign would begin accepting donations in cryptocurrency as part of an effort to build what it calls a “crypto army” leading up to election day. This year, he launched a cryptocurrency platform called World Liberty Financial with members of his family.
Hussein writes for the Associated Press.