Another entry in a series examining manufacturing issues before the next president’s Cabinet nominees.
President-elect Trump will be inaugurated on January 20th, but Congress is already preparing to hold confirmation hearings for Cabinet nominees. We are considering some of that as well. The Senate Commerce Committee will reportedly soon hold a confirmation hearing for investment banker Howard Lutnick, President Trump’s nominee to head the U.S. Department of Commerce.
If approved, Mr. Lutnick will lead a division that helps U.S. companies export goods and services, identifies and analyzes new markets for the United States, and promotes foreign direct investment in the country.
Senators on the Commerce Committee will likely question Lutnick on all of these points and more during a hearing. But here are three little-known issues candidates may hear about that have a significant impact on U.S. manufacturing and its workers.
trade enforcement
Unfair trade practices are an everyday reality for U.S. manufacturers and their employees and pose a widespread existential threat to our rules-based market economy. If trade misconduct is left unchecked, it can have a major negative impact on people’s lives if domestic factories are forced to close or operate at reduced production capacity.
There are many different types of commerce trade enforcement That is, ensuring fair dealing and compliance with trade laws and agreements. For example, if an antidumping or countervailing duty trade case is filed, it is up to the Department of Commerce to determine the scope or margin of trade misconduct. That makes it critical for U.S. manufacturing to use all tools available to the sector to quickly address trade fraud.
Similarly, commerce plays a central role in initiation and implementation. Article 232 An investigation to determine whether imports have an adverse effect on the national security of the United States. The deterioration of Japan’s industrial base due to overcapacity and unfair trade is having a serious impact on its security. It is important that the Department of Commerce continues to appreciate the close relationship between economic welfare and national security. The Department of Commerce should also ensure that current Section 232 measures regarding steel and aluminum are maintained and strengthened to address circumvention and evasion, particularly with respect to downstream “derivative” products.
American broadband deployment
The federal government currently $65 billion The Department of Commerce is responsible for much of this effort as we seek to expand broadband internet across the United States. However, to ensure that funding supports U.S. manufacturing and its workers (and protects national security interests), Congress inserted strong Buy America rules and The use of materials and equipment was prohibited.
It is critical that the National Telecommunications and Information Administration within the Department of Commerce comply with these Congressional Buy America directives. Waivers for fiber optics and other broadband equipment that allow the use of foreign content have already been approved and should be periodically reviewed by the incoming Trump administration with a view to narrowing or eliminating them.
mutual defense procurement agreement
For years, the U.S. government has entered into mutual defense procurement (RDP) agreements to facilitate trade in defense goods between allies. RDP is a tool that repeals the Buy American Act, which generally requires U.S. federal agencies to purchase American products rather than imported goods. Although this policy has benefited America’s industrial base for nearly 100 years, it should not be overlooked without understanding its negative effects on our economy and national security.
The Department of Commerce has the important responsibility of analyzing the potential adverse effects of proposed RDP agreements on U.S. industry and its workers. However, recent Board of Audit report It turned out that Commerce could not provide Any This required some RDP analysis, but the methodology had weaknesses. Proposed RDP agreements for Brazil, India, and South Korea are being considered, allowing the Commerce Department to help Pentagon decision makers decide whether lifting Buy American requirements through the RDP would be harmful to U.S. companies and their workers. Therefore, it is necessary to carry out the necessary analysis. In doing so, input from both companies and workers should be sought to improve the process to ensure that the analysis is comprehensive.
What will happen to this hearing?
Lutnick is a Wall Street titan. He is the billionaire CEO of financial services firm Cantor Fitzgerald, an advocate of cryptocurrencies, and a key political fundraiser for Mr. Trump over the past two presidential election cycles. He currently serves as co-chair of the president-elect’s transition team.
He also supported Trump’s tariff proposals during his campaign, calling them “a great tool for the president” in September. That would be notable for any potential Commerce Secretary, but even more so for this Commerce Secretary. President-elect, While announcing “He will have additional direct responsibility for the Office of the U.S. Trade Representative and will lead on tariffs and trade issues,” Lutnick’s nomination said.
I’ll be keeping an eye on Lutnick’s hearing before the Senate Commerce Committee. Read about the manufacturing policy issues facing President Trump’s pick to lead the United States Ministry of Transport. And stay tuned for details on the issues facing the president-elect’s other Cabinet nominees.
