H
oward Lutnick, CEO of Cantor Fitzgerald, will lead the Commerce Department under President-elect Donald Trump's administration. Trump praised Lutnick's work as co-chair of his transition team and highlighted his role in shaping the administration's trade and tariff agenda. Lutnick will oversee the Office of the United States Trade Representative, advising the president on trade issues.

    Lutnick was reportedly a top contender for Treasury Secretary but faced opposition from Trump due to his persistence and meddling in the selection process. The appointment may be seen as a consolation prize, given the prestige associated with heading the Department of the Treasury. Trump is expected to meet with other potential Treasury picks this week.

    As Commerce Secretary, Lutnick will focus on promoting trade agreements that benefit U.S. businesses and maintain national security. His department played a key role in imposing tariffs during the first Trump administration, including a 2018 decision to impose tariffs on steel and aluminum imports due to national security concerns.

    Lutnick's appointment is part of a broader trend of industry players joining the second Trump administration. Developer Steve Witkoff has been named special envoy to the Middle East, despite lacking formal diplomatic experience. Bill Pulte, grandson of homebuilder William Pulte, is being considered for the Department of Housing and Urban Development.

    Lutnick's appointment may require him to divest from his interests in Cantor Fitzgerald to avoid conflict of interest issues. He could reinvest proceeds from those sales into Treasuries and index funds to defer capital gains taxes. As transition co-chair, Lutnick consulted with Jared Kushner on potential hires, including Blackstone CEO Steve Schwarzman.

    Lutnick's background as a real estate executive has been marked by controversy, including his firm's ownership of commercial brokerage Newmark. He has given millions of dollars to pro-Trump super PACs and was one of the president-elect's loudest supporters on Wall Street.