Howard Lutnick Calls $1.2 Trillion Trade Deficit A 'National Emergency,' Says Trump's Tariffs Are 'Not Going Away'

The U.S. Commerce Secretary, Howard Lutnick, doubles down on the Trump administration’s tariff strategy following recent federal court rulings that blocked key trade policies, declaring America’s trade deficit a national emergency requiring immediate action.

What Happened: In a Fox News interview on Sunday, Lutnick outlined the legal framework supporting continued tariff implementation. “The $1.2 trillion trade deficit, and all the underlying implications of that, is a National Emergency — it’s gutting our manufacturing base… rest assured, tariffs are not going away,” Lutnick stated.

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Lutnick emphasized that Congress granted President Donald Trump authority under the International Emergency Economic Powers Act (IEEPA) to address countries creating national emergencies.

“Congress has given this authority to Trump, and he’s going to use it,” he said, indicating multiple legal pathways remain available even if current challenges succeed in higher courts.

Why It Matters: Lutnick’s comments come as federal courts have blocked significant portions of Trump’s tariff program. U.S. District Judge Rudolph Contreras ruled IEEPA does not grant Trump authority to impose tariffs without Congressional approval.

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The U.S. Court of International Trade separately struck down 6.7 percentage points of tariffs, potentially affecting $200 billion in annual revenue.

Goldman Sachs economist Alec Phillips noted the administration could quickly reimpose similar tariffs using Section 122 authority, which allows 15% tariffs for 150 days without Congressional approval.

The Kobeissi Letter estimates that approximately $10 billion in tariff revenue has been collected since April 2, which could require refunding if court rulings are upheld.

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