WATCH: Trump Transition Chair Reveals Trump's Plan To Use Tariffs To Protect American Workers - 'This Is The Best Explanation I've Heard'

During a Monday CNBC interview, Trump transition chairman Howard Lutnick expertly explained how President Trump plans to use tariffs to protect American industries, attract investment to the United States, and secure more favorable trade deals from other countries. CNBC host Becky Quick described Lutnick's explanation as one of the "best explanations" she's heard on the topic.

"When you talk to the former president about tariffs, do you see it as a bargaining chip, or do you think you're going to see tariffs across the board at 20 percent?" Joe Kernan asked the billionaire businessman. 

"I think we should put tariffs on stuff we make and not put tariffs on stuff we don't make. It's pretty simple. And, of course, it's a bargaining chip. We can't sell a Ford or GM in Europe. If you go to Europe, you can't sell a Ford or GM. Why? There are 100 percent tariffs. What about Japan? 100 percent tariffs. So if you think we said, 'We're going to tariff you like you tariff us.' Do you think they're going to allow Mercedes, all of these Japanese companies, Porsches, and BMWs to all of a sudden have 100 percent tariffs in America? Of course not. They are going to come and negotiate, and their tariffs are going to come down, and finally, Ford and General Motors are going to be able to sell in these places."

"If you do it strategically, it absolutely makes sense. If you do it strategically, if it is across the board, it creates a real problem," CNBC anchor Andrew Sorkin said. "And the question is if you think the president is going to do it strategically or across the board. He keeps saying it's across the board."

Lutnick explained that the president has made multiple broad statements about his tariff plans to get his point across, adding that Trump understands that it wouldn't make sense to put tariffs on products that the United States doesn't produce. "Use tariffs to build in America. If we are making it in America, tariff it. Or if we are competing, tariff it. But you've got to remember, we need to protect the American worker. Finally, someone is going to protect the American worker, and Donald Trump is here to protect the American worker."

The Trump transition chair then explained that the tariffs put on the United States originated with the 1948 Marshall Plan when American policy mandated that Germany and Japan could tariff America so they could rebuild their home industries. "Our economy is so awesome that we'll use it to help you rebuild. When should that have ended? 1980? 1985? I mean, why, 40 years, are Japan, Germany, and all of Europe still tariffing the heck out of our auto industry? Tariffing the heck out of our furniture industry. Do you realize all of the furniture you're buying is [foreign made]? It seems crazy," Lutnick said. "They tariff us, and we don't tariff them. It's so obvious."

WATCH:

"THIS IS THE BEST EXPLANATION I'VE HEARD": Trump Transition Chair @howardlutnick outlines how President Trump will use tariffs to protect the American worker pic.twitter.com/14FNgFgcC6

— Trump War Room (@TrumpWarRoom) September 16, 2024

.@howardlutnick: "There is only one way to break inflation, ok? And that is to bring down energy costs... Inflation comes from the 'American Rescue Plan,' which was passed in 2021, which created $2 Trillion of new cash being produced... everyone said it's going to create… pic.twitter.com/bd3nEAl6gx

— Trump War Room (@TrumpWarRoom) September 16, 2024

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