Crowd's Response to Howard Lutnick's Price Rise Question Goes Viral
Newsweek has contacted the Department of Commerce for comment outside regular working hours.
President Donald Trump's tariffs, primarily those on Chinese imports, have been tied to increasingly gloomy assessments of the U.S.'s economic outlook, as well as fears over higher inflation and broader damage being done to the country's business community. Prior to the tariff pause announced earlier this month, port authorities warned that tariffs on China could lead to empty store shelves. Despite the temporary reprieve, major retailers such as Walmart have said they will need to raise prices to absorb the import taxes.
Trump and his administration have maintained that tariffs are a necessary measure to correct historic trade imbalances and foster a resurgence in American manufacturing, while acknowledging that there may be some short terms shocks to the economy. Others within the president's circle-Lutnick being key among them-have denied that Americans will feel any negative effects from the policy.
Speaking at Axios' Building the Future event in Washington on Wednesday, Lutnick said of the tariffs: "This is on since April. It's not that the tariff is coming; it's on."
"Have any of you felt any of it?" Lutnick asked, to which several audience members responded with an audible "yes."
The footage has gathered thousands of views on social media. In the full conversation posted on Axios' YouTube channel, the audience's response is more muted than in the widely shared clip, though it remains audible.
On April 9, Trump announced a 90-day pause on most nations' reciprocal tariffs. On May 12, China and the U.S. jointly announced a similar reduction in the rates placed on each other's imports. Chinese imports are subject to a 30 percent import tax-down from 145 percent-until mid-August as the two countries engage in more comprehensive trade negotiations.
Surveys have found stark concerns among American consumers about the anticipated effects of the trade measures. The University of Michigan's Consumer Sentiment Index fell to 50.8 in May, marking a 30 percent decline since January, with the majority of those surveyed mentioning tariffs in their responses. Year-ahead inflation expectations, meanwhile, spiked to 7.3 percent from 6.5, the highest reading in decades.
The University of Michigan said the results were largely gathered before the pause in U.S.-China tariffs, adding that those gathered after continued "to express somber views about the economy."
It continued, "The initial reaction so far echoes the very minor increase in sentiment seen after the April 9 partial pause on tariffs, despite which sentiment continued its downward trend."
Additionally, 54 percent of U.S. companies said they would have to raise prices to absorb the cost of tariffs, according to a survey conducted by the insurance company Allianz, up from 46 percent prior to the "Liberation Day" speech Trump gave on April 2.
Commerce Secretary Howard Lutnick said at Axios' Building the Future event on Wednesday: "You go to the store now. Are you feeling the pain? No. Why not? Because there is no pain. Because what happens is the sellers, the producers, the sellers and the currencies change, and the price effectively mostly goes away."
Acknowledging the audience's response, Lutnick later added: "I agree with you. The Chinese tariffs caused pain last month. I agree, and I feel horrible about it, and the president felt horrible about it. But we had to fight the fight, OK? The president has to stand strong, and you can't fix things in a day, OK? And that's still going. But I would expect that prices in America will be unaffected."
The pause on reciprocal tariffs announced on April 9 is set to end in early July. During this window, the administration is hoping to strike favorable deals with countries that would bring their eventual rates down.
Treasury Secretary Scott Bessent told CNN last week that the U.S. was focused on negotiating with 18 "important" trading partners and that if countries failed to secure a deal, their rates would revert to those Trump announced on April 2.
Tariffs on Chinese imports are set to remain at 30 percent until August 10, barring any reescalation in the trade war.
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