The United States Senate Committee on Commerce, Science, and Transportation voted on Wednesday (February 5) to approve President Donald Trump’s nomination of Howard Lutnick as Secretary of Commerce, with the next step being a full Senate vote.
The committee passed the nomination by a vote of 16 to 12, with all Democratic members except Senator John Fetterman of Pennsylvania casting opposing votes. Lutnick suggested last week that Trump adopt a comprehensive tariff policy based on country distinctions to restore “reciprocity” in US trade relations.
Trump designated Lutnick to oversee government trade policy and supervise the operation of the Office of the United States Trade Representative (USTR). Lutnick emphasized that comprehensive tariffs would help revitalize American manufacturing.
Following the launch of the purportedly powerful and low-cost generative AI model by the Chinese artificial intelligence startup DeepSeek, the US financial markets swiftly reacted, prompting senators to inquire how Lutnick plans to maintain America’s leadership position in AI.
Lutnick stated that DeepSeek had unlawfully obtained US technology to develop “extremely low-cost” AI models, and vowed to implement new restrictions on Beijing.
Moreover, Lutnick believed that the Biden administration’s $52.7 billion subsidy plan, known as the CHIPS and Science Act, was indeed a “great initial investment to rebuild the American semiconductor industry,” but further review and improvement are still necessary.
According to Politico, Democratic members of the committee raised concerns about potential conflicts of interest in Lutnick’s business dealings. As the CEO of the Wall Street financial services firm Cantor Fitzgerald, Lutnick has close ties to a controversial cryptocurrency company, but he has not indicated whether he will recuse himself from matters related to the White House’s cryptocurrency working group. This group is responsible for developing a framework for digital asset transactions, a crucial issue for the cryptocurrency industry seeking legalization.
The Department of Commerce, with its 47,000 employees, is responsible for US export controls, anti-dumping and anti-subsidy tariffs, weather forecasting, fisheries management, economic data dissemination, and attracting investments in the United States.