U.S. Commerce Department nominee vows to pressure allies into manufacturing in the U.S.

We begin with the comments from U.S. President Donald Trump's pick for Commerce Secretary, which is causing concern for U.S. allies and the global trade market.

The nominee backed plans to impose levies on foreign goods, while possibly backing out of subsidies signed under the Biden administration.

Our Moon Hye-ryeon has the details.

President Trump's nominee to lead the Commerce Department, Howard Lutnick, backed Trump's plans to impose tariffs and stated that American allies – including South Korea – have exploited the United States in trade.

During his Senate confirmation hearing on Wednesday, Lutnick claimed that Washington will need to work closely with allies such as Tokyo and Seoul in order to push foreign companies toward U.S.-based manufacturing.

These remarks came in response to a question that asked about his plans to promote joint investments with allies to stimulate growth in the U.S.

Lutnick made clear that tariffs would serve as a tool to encourage domestic manufacturing, and emphasized that while tariffs on China should be the highest, allies should not expect any exceptions.

"We need to be treated better. We need to be treated with respect. And we can use tariffs to create reciprocity, fairness and respect."

He also addressed Trump's recent announcement of a 25-percent tariff on Mexico and Canada scheduled to take effect at the start of next month, clarifying that these tariffs are separate from general trade tariffs.

He explained that these specific tariffs aim to curb illegal immigration and fentanyl trafficking, and would not be implemented if both countries cooperate on these issues.

As for general trade tariffs, he revealed his preference for across-the-board tariffs by country, suggesting that he favors tariffs applied across all goods rather than specific goods categories.

Lutnick expressed skepticism about subsidies provided under the Biden administration through the CHIPS and Science Act and the Inflation Reduction Act, raising concerns about how South Korean firms investing in the U.S. might be negatively affected.

Tech giants Samsung Electronics and SK hynix have made significant investments in the U.S. based on these incentives, but Lutnick stated that even if contracts under the CHIPS Act were finalized under the Biden administration, they would need to be reviewed.

He ALSO opposed the tax credit for leased electric vehicles – a provision under the IRA that has benefited South Korean auto companies such as Hyundai Motor.

The hearing also addressed growing concerns over China's advances in artificial intelligence – including the recent breakthroughs by DeepSeek, a Chinese AI company.

Lutnick advocated for stringent export controls and tariffs to curb China's technological rise, and accused DeepSeek of stealing intellectual property from the U.S.

Moon Hye-ryeon, Arirang News.