Trump tariffs part of ‘drug war,’ not ‘trade war’: Commerce secretary

Commerce Secretary Howard Lutnick said President Trump’s tariffs on other countries are part of a “drug war,” not a “trade war.”

Lutnick joined CNBC on Tuesday, just hours after Trump’s 25 percent tariff plan went into effect for Mexico and Canada. In retaliation, Canada introduced a 25 percent tariff on the U.S. and Mexico is expected to announce its own tariffs soon.

“Hopefully Mexico will understand that this is not a trade war,” Lutnick said. “This is a drug war.”

While the Trump administration has sought to lessen the flow of migration into the U.S. through taxing its neighbors, it’s also targeting the flow of fentanyl into the country.

The tariffs were first introduced when Trump took office in January, but after Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau agreed to implement resources at the border, they were paused for a month before officially going into effect Tuesday.

Lutnick said there is an April 2 deadline for a study about the tariff efficacy at the shared borders, and Trump will make a decision about how to proceed.

“If they can stop the flow of fentanyl, and they can prove to the president they can stop the flow of fentanyl, then of course the president can remove these tariffs,” he said.

The Wall Street Journal noted that the Dow Jones took a 650-point drop after Trump confirmed the tariffs would go into effect. Companies also have begun announcing that price hikes for Americans will go into effect shortly as they grapple with increased prices of goods under the plan.

On Sunday, Lutnick said Trump’s plans were expected to be a “fluid situation,” and indicated the tariffs may differ from the original 25 percent Trump proposed. However, as of Tuesday, the 25 percent was applied to Mexico and Canada.

Lutnick reiterated that the Trump administration sees the tariff plan as a way to save American lives from the drug.

“We need to see material reduction in autopsy deaths from opioids and that’s what the president is talking about,” he said on CNBC. “This is not a trade war.”