Dissatisfaction within the White House regarding US Commerce Secretary Howard Lutnick is escalating – he has been accused of lacking a basic understanding of tariffs and economic matters, frequently 'leaking' information ahead of time, and even contradicting official information from the White House.

In a media interview on Wednesday, US Commerce Secretary Howard Lutnick stated that Trump plans to eliminate the tax burden for earners below $150,000 after achieving a balanced budget:

I know what (Trump's) goal is... anyone earning less than $150,000 a year will not have to pay taxes. That is his goal. That is my goal.

It is reported that this is just part of Trump's broader tax reduction plan. Lutnick stated:

How about not taxing tips? How about not taxing overtime pay? How about not taxing Social Security? What about all of these?

Lutnick also revealed that Trump plans to create an 'External Revenue Service' to collect tariffs, even suggesting that if tariff revenues are sufficient, all federal income tax could be terminated.

Previously, Lutnick defended Trump's tariff policies, stating that these policies are aimed at 'generating revenue,' 'driving growth,' and 'promoting domestic factory construction,' and that even if they lead to an economic recession, it is 'worth it.'

Recently, Lutnick's frequent public statements have caused considerable controversy—due to his economic policy views often contradicting Trump, and his repeated disclosures of policies without White House approval, politicians have accused Lutnick of lacking basic understanding of tariffs and the economy, yet making inappropriate comments on television.

Has Lutnick created a false economic image by leaking information in advance and embarrassing the White House?

According to Politico, White House and administration officials, as well as Trump's external allies, are increasingly frustrated with Lutnick, privately complaining about his close relationship with the president and the advice he gives on economic issues, while he even lacks an understanding of the basic knowledge of tariffs and economic operations.

The most notable example is that shortly before Trump’s pre-recorded interview with Fox Business Channel’s Maria Bartiromo aired (in which Trump stated that he 'does not rule out the possibility of an economic recession'), Lutnick remarked on NBC's 'Meet the Press' that Americans 'absolutely should not' prepare for an economic recession.

This statement not only contrasts with the cautious stance of US Treasury Secretary Basent but also goes against the 'short-term pain' message that Trump is trying to convey. An individual close to the administration pointed out:

"The president and Basent are more direct and honest because they believe the public is on their side. They do not need to lie to the people as they know what they are doing is for everyone's benefit. But Lutnick is there saying, 'No, everything will be fine.'"

According to media reports citing insiders from the administration, Lutnick has also repeatedly disclosed policies prematurely without White House approval—this behavior undermines the carefully designed rhythm of policy announcements by the White House.

For instance, last week, Lutnick announced in a CNBC television interview that tariffs on Mexico and Canada might be suspended for a month, while Trump was still concluding negotiations with Mexico and trying to obtain more concessions from Canada.

Analysis indicates that this "premature move" by Luttig reflects a lack of basic sensitivity to political operations and undermines the authority of the White House.

A person close to the White House stated that this situation has occurred multiple times: Luttig proposes an idea in the office and then immediately expresses it on a television program, as if it were a White House policy—even when it is not.

Analysis: Luttig's actions are exacerbating market volatility.

Luttig's lack of experience, combined with his "Trump-like" approach, has made him many enemies within the government.

According to 11 Trump allies, administration officials, Republican legislators, and others interviewed by Politico, Luttig's behavior and personality have left him with almost no friends within the government. Some have described him as "constantly rehearsing for Trump's approval," trying to be a "mini Trump."

Luttig's actions are not only harming the credibility of the Trump administration; given that the stock market's reaction to tariff policies is direct and sensitive, his every move is also exacerbating market uncertainty.

Some believe that considering Luttig continues to make uncoordinated statements in the media, this internal chaos in the White House may lead to continued market volatility. Therefore, investors should closely monitor official policy statements from the Trump administration rather than rely on single officials' media appearances.

This viewpoint suggests that the market still needs to wait until the government provides a more unified message on economic policies, especially regarding the exact impacts of tax cuts and tariff policies.

Editor/rice