Name: Watch CNBC's full interview with U.S. Secretary of Commerce Howard Lutnick
Uploaded: 2026-01-15T20:13:21+00:00
Duration: 963 s

Speakers

Howard Lutnick — Secretary of Commerce

Brian Sullivan — Anchor, CNBC (Last Call / Power Lunch)

Summary

Howard Lutnick, U.S. Secretary of Commerce, discusses the newly announced U.S.-Taiwan trade deal, including $250 billion in company investment and $250 billion in government credit to onshore semiconductor supply chains. He expects TSMC and hundreds of suppliers to expand in America, with 100% tariffs threatened if companies do not build domestically. He also argues the U.S. economy can grow over 5% in Q1 2026 with low inflation, expects lower interest rates, and says global stock markets are rallying amid Trump policies.

U.S.-Taiwan deal includes $250B company commitments and $250B government credit.
Goal is to move 40% of Taiwan's semiconductor supply chain to the U.S.
TSMC is expected to expand further in Arizona and possibly double U.S. footprint.
Companies building in America get tariff-free semiconductor imports during construction.
Lutnick threatens 100% tariffs if companies do not build in the U.S.
He predicts over 5% U.S. GDP growth in Q1 2026 with low inflation.
He says the Fed should cut rates and expects U.S. rates and mortgage rates to fall.
He says global stock markets are hitting new highs despite tariff concerns.

Ideas

Howard Lutnick Secretary of Commerce 1:00

Taiwan deal onshores U.S. semiconductor supply chain.

The U.S.-Taiwan trade deal includes $250 billion in direct company commitments and $250 billion in government credit to bring the entire semiconductor supply chain to America. Lutnick says hundreds of suppliers will come, giant semiconductor industrial parks will be built, and the goal is to move 40% of Taiwan's supply chain and production onshore. National security requires domestic chip production, and companies that do not build in America face tariffs likely as high as 100%.

Howard Lutnick Secretary of Commerce 2:06

TSMC expands Arizona, gets tariff relief.

TSMC already committed $100 billion in 2025 toward the $250 billion company total, has bought hundreds of acres adjacent to its Arizona facility, and Lutnick expects it to expand even more, possibly doubling its U.S. footprint. Under the deal, if TSMC builds in America, it can import semiconductors tariff-free during construction up to 2.5 times the amount it builds, giving it a special tariff advantage.

Howard Lutnick Secretary of Commerce 3:50

Taiwan wins lower tariffs under deal.

Taiwan receives a reduction in the reciprocal tariff rate from 20% to 15%, zero tariffs for generic pharmaceuticals, aircraft parts, and unavailable natural resources, and tariff-free semiconductor imports while companies build in the U.S. This lowers trade friction for Taiwan exporters and is the win Taiwan gets from the deal.

Howard Lutnick Secretary of Commerce 11:18

Rates should fall, buy Treasuries.

Lutnick argues inflation at 2.7% is below 3%, productivity is strong, and Fed balance sheet runoff is already tightening policy, so the Fed has room to cut rates. He says U.S. rates should be lower and are coming down, which supports Treasuries.

Howard Lutnick Secretary of Commerce 11:45

Lower mortgage rates boost housing demand.

Lutnick says housing requires lower interest rates and that making things affordable means bringing rates down. He notes mortgages already fell below 6%, prompting the best refi week in decades and the most home visits in decades, and he expects lower U.S. rates to make housing more affordable and support demand.

Howard Lutnick Secretary of Commerce 14:17

America-led global stock markets keep rallying.

Lutnick says when America is winning and its light is shining, world stock markets rally, and that despite tariff fears, markets are up and hitting new highs in the U.S. and globally. He frames Trump's policies as lifting the U.S. and the rest of the world.

Watch CNBC's full interview with U.S. Secretary of Commerce Howard Lutnick

Summary

Ideas

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