On Thursday’s broadcast of The Ingraham Angle, Commerce Secretary Howard Lutnick claimed tariffs “paid for tax on tips and no tax on overtime,” while warning that the U.S. must reduce its trade deficit. Lutnick emphasized that tariffs directly support tax reforms and bolster American revenue.
Discussing a potential future trade deal with China, Lutnick said the nation must “balance ourselves, get our trade deficit down,” referencing products diverted through Vietnam. He stated, “At some point, we need to… get rid of them selling to Vietnam, who sells to us. He’s done that.” Lutnick argued that every trade agreement now mandates a content threshold—claiming that if content from other markets hits 40%, this measure benefits U.S. bottom lines significantly.
Lutnick continued: “Donald Trump is on it. And that’s why he knows he’s going to make 7, 800, maybe 900 billion dollars, because if you put 40% on all that stuff—this is going to the bottom line of America. Who paid for tax on tips and no tax on overtime? Tariffs.” These comments came about 3 minutes and 25 seconds into the segment.
His remarks frame tariffs as a funding mechanism for policy goals like ending taxes on tips and overtime, and as leverage in trade talks to shore up domestic economic interests.
These comments align with Lutnick’s broader messaging portraying tariffs as essential tools in President Trump’s broader economic strategy. They also echo past statements that intend to position tariff revenue as a revenue stream to support fiscal objectives.
