By Brian Schwartz and Gavin Bade

WASHINGTON -- Howard Lutnick's journey from Wall Street veteran to one of President Trump's most hawkish trade advisers began with a speech at his October campaign rally at Madison Square Garden.

Lutnick extolled the virtues of tariffs and argued that the duties could at least in part replace the U.S. income tax -- a line that Trump has regularly used as a talking point. Since then, Lutnick has privately built an alliance with two of Trump's most vital first-term trade advisers and proponents of punitive tariffs: Peter Navarro and Jamieson Greer, according to people familiar with the matter.

Lutnick became a student of Navarro and Greer's on the intricacies and history of trade deals, with all three Trump advisers staying in regular touch about policies and how they could be implemented throughout Trump's second term, the people said. The two have offered Lutnick guidance as he tries to promote Trump's trade agenda.

This is how Lutnick, the incoming Commerce secretary and CEO of financial services firm Cantor Fitzgerald, positioned himself at the center of the bellicose, punitive tariff threats that have defined the early days of Trump's second term. Once known as a more moderate Republican-aligned donor and a supporter of Hillary Clinton during the 2016 election, Lutnick has spent the week since Trump's inauguration positioning himself as one of the advisers in the president's ear arguing in favor of maximalist pressure on allies and foes alike, people close to Trump and Lutnick said.

Lutnick and deputy chief of staff Stephen Miller have been advocating for a tariff-first, talk-second approach when it comes to targeting Mexico and Canada as soon as this weekend with a 25% levy, The Wall Street Journal previously reported. Lutnick said during an event celebrating Trump's inauguration that foreign companies will have to pay a tax if they want to continue to do business with the U.S. and a so-called "external revenue service" will help " put up tariffs."

The White House and a representative for Lutnick didn't return requests for comment.

The longtime Wall Street executive will likely face a wave of questions about the administration's trade agenda from the Senate Commerce Committee during his confirmation hearing Wednesday. Trump's tariff agenda enjoys broad support among Washington Republicans, but some Republican senators expressed concern about Lutnick and Trump's maximalist trade approach -- particularly the impacts that a trade war could have on their constituents.

Sen. Jerry Moran (R., Kan.), in a closed-door meeting with Lutnick last month, expressed concern over how a trade war would affect farmers in his state. He said that Lutnick listened to his concerns, but offered him no assurances.

Sen. Bill Cassidy (R., La.) said he disagreed with Trump's weekend move to invoke an emergency economic law to threaten Colombia with tariffs. The same law could be used as soon as Saturday to hit Mexico and Canada with 25%, across-the-board tariffs, a hardball tactic Lutnick has pushed.

And Sen. Todd Young (R., Ind.), a member of the Commerce Committee, said he would prefer to see a comprehensive approach to tariffs and sanctions rather than episodic threats at trading partners. He hasn't said whether he'll support Lutnick's confirmation to lead Commerce, a role Trump has put at the epicenter of his trade agenda.

Lutnick has positioned himself as a point of contact for Canadian trade officials in the buildup to his confirmation hearing, as Canada prepares to authorize their own trade barriers against the U.S. if Trump moves ahead with his tariff plans. Lutnick has been in close contact with Canada's finance minister, Dominic LeBlanc, according to the Canadian official's spokeswoman.

Lutnick and LeBlanc were pictured at a late November dinner with Trump, Canadian Prime Minister Justin Trudeau and others at the president's private Florida club, Mar-a-Lago. At the dinner, Trudeau warned that any tariffs on Canadian goods would hurt the country's economy, and Trump later joked that maybe Canada should consider becoming a 51st U.S. state.

"Following the dinner at Mar-a-Lago between the prime minister and President Trump, Minister LeBlanc has had informal discussions with incoming Commerce Secretary Howard Lutnick regarding ways to further strengthen collaboration between Canada and the U.S. in areas such as trade and border security," LeBlanc's spokeswoman said.

Lutnick's conversations with Navarro and Greer also helped prepare him for his meetings with senators, according to a person familiar with the matter. Some Republicans and Democrats have pressed Lutnick on his knowledge of the history of trade deals, this person said.

Republican senators largely expect Lutnick to be confirmed with board support.

"This is what the American people voted for," Young said, "and Trump is going to give it to them good and hard."

Write to Brian Schwartz at brian.schwartz@wsj.com and Gavin Bade at gavin.bade@wsj.com

(END) Dow Jones Newswires

January 28, 2025 23:00 ET (04:00 GMT)

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