Lutnick claimed to CNBC that Trump’s reanimated tariff policies will usher in a wave of economic benefits, including raising domestic growth, shrinking budget deficits and tamping down spiking bond yields.

He spoke as the 10-year U.S. Treasury yield hit its highest level since November, 2023 amid a global bond sell-off.

U.S. tariff rates under Trump are already highly above historical averages, even after the Supreme Court’s February ruling that struck down Trump’s expansive “reciprocal” duties.

Lutnick blamed muted U.S. GDP in the second quarter on the high court’s ruling, telling “Squawk Box,” “Those tariffs came down, imports came flooding in.”

After the tariff collapse, “imports come flying in, starting February all the way through the next quarter,” resulting in a 1.6% reduction U.S. GDP, he said.

“Over the next couple of weeks, they’ll be all back in place, and you’ll see imports start to fall, and you’ll see GDP rise.”

He went on to claim that as Trump finds ways to reimpose the scrapped tariffs, the import taxes will bring in revenues as high as $400 billion a year, reducing America’s rapidly increasing budget deficits.

“You’re going to see the economy start to kick up again as we go back to above 3 percent and the growth rate and the reduction in the deficit will not only stabilize the bond market, will bring rates down,” Lutnick said.

— Kevin Breuninger

Nvidia CEO Jensen Huang called AI “the great equalizer’ and said the technology will democratize intelligence.

“Artificial intelligence will democratize intelligence and capabilities for the G20 countries,” Huang said in a fireside chat with Commerce Secretary Howard Lutnick. “For the countries that invest in it, it’ll help elevate your society, elevate your industry much, much more quickly than you possibly could have imagined before.”

—Chris Eudaily

Commerce Secretary Howard Lutnick doesn’t believe the recent rise in Treasury yields is anything to be concerned about.

In an interview with CNBC’s “Squawk Box” on Wednesday, Lutnick said he thinks that a pickup in the growth rate of the U.S. economy, as well as a reduction in the deficit — which reached its highest monthly level in more than five years in July — will ultimately “bring rates down.”

“I’m comfortable with where things are,” he said. “I think what you’ll see is rates stabilize and start to decline over the coming, let’s say, six months.”

On Wednesday, the 10-year U.S. Treasury note yield hit its highest level since November 2023.

—Sean Conlon

Commerce Secretary Howard Lutnick told CNBC that the Trump administration is working on a tariff framework for chips and all the companies know they are coming.

Lutnick confirmed a Politico report from last week that the White House was weighing the move.

“I think what you’re going to see is targeted, thoughtful tariff policy that basically says if you build here, you don’t pay, but if you don’t build here, expect to pay to enter the greatest market in the world,” Lutnick said.

The tariffs on semiconductors have been in the works for some time, but the administration hasn’t discussed what is being considered publicly.

“We will be successful in semiconductors. They’re going to be built in America,” he said.

—Chris Eudaily

Commerce Secretary Howard Lutnick doubled down on blaming Canada amid an ongoing he said-she said over which country is responsible for tanking a trade deal at the 11th hour.

Lutnick told CNBC’s “Squawk Box” that Canadian negotiators started “adding crazy ideas to the mix” just hours before a deadline to reach a deal that would avert Trump’s 50% tariffs on Canadian goods from taking effect. He pointed to medium- and heavy-trucks for Canada’s ask on the Friday the talks devolved.

“And I said to one of the ministers, ‘Are you actually trying to blow this up?’ And his answer to me was, ‘I’m not allowed to say that,'” Lutnick said.

“They blew it up for political reasons only,” he said.

Lutnick also allowed that the U.S. may have made last-minute asks, as Trump has said sounds like something he may have done.

— Kevin Breuninger

Treasury Secretary Scott Bessent said the conversation around AI and data centers needs “a big reset,” blaming AI companies for doing a terrible job of being trustworthy messengers for the tech boom.

“I think that the AI companies, whether it is the builders of the data centers, whether it is the labs themselves, have done a horrendous job, horrendous job of explaining themselves to the American people,” Bessent said in comments Tuesday following the G20 meetings with finance ministers and central bankers in Asheville, North Carolina.

Bessent said the companies need to convince the American people that “all the benefits will not accrue to a small group” and will instead be spread evenly.

—Chris Eudaily

Elon Musk, the CEO of Tesla and SpaceX, said Tuesday that governments should seek to “make things default legal, not default illegal” to help foster growth, likening new companies to saplings in a forest.

“What most countries tend to do is they tend to provide too much support to the large existing trees in the forest, and not enough to the small saplings,” he said, adding that the regulatory environment “should be generally biased towards supporting” the small trees.

Musk, the world’s richest person, also made several bold predictions on the potential for AI growth and robotics.

“AI will probably increase the global economy by 20% to 30%” he said, adding that in 10 years he expects over a billion humanoid robots out in the world.

—Chris Eudaily

Former White House AI czar David Sacks addressed blowback against the AI data center buildout on Tuesday and said local communities can benefit from the construction projects.

“Data centers, if done right, they bring electricity costs down, not up, because the AI companies will generate net new power generation,” he said. “That’s really the key.”

Sacks, a venture capitalist who is co-chair of the President’s Council of Advisors on Science & Technology, said if the companies are allowed to generate their own power, then excess can be sent back to the grid, bringing costs down. He also said companies can help pay for grid upgrades.

President Donald Trump on Monday blasted opposition to data centers, posting on Truth Social that any locale stonewalling the buildout must “want to end up being backwards and poor.”

Sacks insisted that it’s still a local decision.

“The federal government should not preempt the decision of states with respect to data centers,” he said. “It is fundamentally a local decision, and we respect that and have done nothing to change that.”

—Chris Eudaily

https://www.cnbc.com/amp/2026/09/02/g20-innovation-ministerial-live-updates.html