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Home»Economic News»Donald Trump asks arch protectionist Robert Lighthizer to run US trade policy
Economic News

Donald Trump asks arch protectionist Robert Lighthizer to run US trade policy

November 8, 2024No Comments3 Mins Read
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Robert Lighthizer, who previously served as the US trade representative during Donald Trump’s administration, has been approached to return to the role as the president-elect begins assembling his cabinet team.

Multiple sources familiar with the discussions within Trump’s transition team revealed that Lighthizer was asked to reconsider the position, despite his interest in other roles such as commerce secretary.

Lighthizer also expressed desire to serve as Treasury secretary, but it is likely that this position will be offered to a financier, with potential candidates including Scott Bessent and John Paulson.

The prospect of Lighthizer, known for his protectionist stance, being reinstated in the crucial trade position is expected to cause unease in Beijing and among US trading partners, given his influence during Trump’s trade disputes in his first term. Trump had previously threatened to impose high tariffs on all imports into the US, particularly those from China.

While Lighthizer was considered for commerce secretary, sources familiar with the discussions suggested that Linda McMahon, the billionaire co-chair of Trump’s presidential transition team, is likely to be offered the position.

Congressman Brendan Boyle, a prominent Democrat, expressed support for Lighthizer’s potential reappointment, citing his bipartisan approach and respect across party lines during his previous tenure.

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It remains uncertain whether Lighthizer will accept the position, as he has not responded to requests for comment. Similarly, a spokesperson for Trump has not provided immediate feedback.

Robert O’Brien, who previously served as national security adviser under Trump, recently informed his private sector consultancy clients that he would not be returning to the administration, according to sources familiar with the situation.

Lighthizer, who enjoyed Trump’s favor during his first term, was one of the few top officials to avoid the president’s criticism.

As the trade representative, he oversaw a period of significant turmoil in global trade, with the administration imposing hefty tariffs on major trading partners, including allies, on billions of dollars’ worth of imports.

A former attorney for the US steel industry, Lighthizer frequently clashed with the World Trade Organization, describing it as a “mess” that had “failed America.”

If appointed, Lighthizer is expected to oppose Nippon Steel’s proposed $15 billion acquisition of US Steel, a deal that Trump has already expressed opposition to.

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Donald Trump, bundles of steel tubes at a trading market in the outskirts of Shanghai, cars at Lazaro Cardenas port, Mexico, Boeing plane and logo

Having spent decades as an attorney at a Wall Street law firm, Lighthizer advocated for US steel industry interests, particularly in combating imports from China. He played a key role in convincing the George W. Bush administration to impose tariffs on steel imports in the early 2000s.

During his previous term as trade representative, Lighthizer prioritized reshoring manufacturing and protecting American workers over traditional trade deals driven by business interests. Despite this, he negotiated limited trade agreements with China and Japan, as well as updating the US deal with Mexico and Canada.

In an op-ed for the Financial Times before the US election, Lighthizer criticized free trade for the decline of American manufacturing jobs and highlighted the “alarming” US trade deficit. He emphasized Trump’s commitment to taking action in response to a trade system that he believes is failing the country.

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