Bloomberg Talks Commerce Secretary Howard Lutnick Talks Japan, Switzerland, BLS Troubles
Sep 5, 2025
Howard Lutnick, U.S. Secretary of Commerce, dives into pivotal trade developments with Japan, including a groundbreaking $550 billion agreement aimed at revitalizing domestic manufacturing. He reveals a forthcoming proposal from Switzerland to enhance tariff rates. The conversation also touches on the U.S.-India trade dynamics, highlighting concerns over India's oil imports from Russia and their implications. Additionally, Lutnick calls for reforms at the Bureau of Labor Statistics to improve the accuracy of crucial economic data.
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Japan's $550B Investment-for-Access Plan
- Howard Lutnick describes a novel trade model where Japan commits $550 billion for U.S.-directed investments.
- He frames it as Japanese government funds handed to President Trump to build U.S. projects and reduce reliance on China.
Antibiotics Example To Reduce China Reliance
- Lutnick gives the antibiotic example: move generic antibiotic production from China to the U.S. funded by Japan.
- He uses this concrete project to illustrate how the $550B could reduce supply-chain reliance on China.
Enforcement Via Capital Calls And Tariff Reversion
- Lutnick explains the enforcement: Japan funds capital calls during Trump's term through January 2029.
- If Japan stops funding, tariffs revert and the U.S. retains project cash flows, he says.