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Charlie Kirk is the Founder and President of Turning Point USA, the largest and fastest growing conservative youth activist organization in the country with over 250,000 student members, over 150 full-time staff, and a presence on over 2,000 high school and college campuses nationwide. Charlie is also the Chairman of Students for Trump, which aims to activate one million new college voters on campuses in battleground states in the lead up to the 2020 presidential election. His social media reaches over 100 million people per month and according to Axios, he is one of the "top 10 most engaged" Twitter handles in the world. He is also the host of “The Charlie Kirk Show,” which regularly ranks among the top news shows on Apple podcast charts.
Howard Lutnick Reveals How Donald Trump Closed the Biggest Trade Deal in History with European Union
Commerce Secretary Howard Lutnick shares an inside look at the historic EU trade deal that shattered 80 years of failed American trade policy. The European Union agreed to 15% tariffs across the board and opened their $20 trillion economy to American products for the first time ever. Lutnick describes how President Trump's unorthodox approach to tariffs, starting with Liberation Day on April 2nd, forced allies and adversaries alike to negotiate. He details the remarkable $550 billion Japan deal, how Trump brokered peace between Thailand and Cambodia using trade leverage, and the possibility of tariff revenue rebates for working Americans. With over $90 billion in annual revenue from the EU deal alone and the potential for 5 million high-paying American manufacturing jobs, Lutnick explains why Trump's intuition proved every expert wrong.
The Historic EU Trade Deal That Changed Everything
Commerce Secretary Howard Lutnick joined Charlie Kirk to discuss what he calls a complete vindication of President Trump's trade policy. The European Union, representing 450 million people and a $20 trillion economy, agreed to a deal that sends $600 billion worth of goods to America annually at a 15% tariff rate, generating $90 billion in revenue each year for the United States.
"In the beginning you had all these experts who said that Europe would never go for a deal with Donald Trump and America and this was impossible," Lutnick explained. "We have proven beyond a shadow of a doubt that Donald Trump is completely correct about tariffs."
The deal opens European markets to American products for the first time ever. American companies can now sell industrial products, shellfish, beef, chicken, row crops, cereals, medical machinery, and cars without the regulatory barriers that previously blocked them. Europe agreed to accept American standards, meaning a car manufactured in Detroit can now be sold directly in Europe.
How Liberation Day Led to the Biggest Deal
Lutnick walked through the strategic sequencing that made this deal possible. The approach began with understanding the fundamental flaw in American trade policy since World War II.
"The trade policy of the United States was designed right after World War II which basically was let's export the power of the American economy to the rest of the world, build the rest of the world with our economy, and you can put on tariffs to protect yourself and we'll stand here and export our economics to you," Lutnick said. "We rebuilt Japan after World War II, we rebuilt Europe. And then we rebuilt it after Korea. We rebuilt it after Vietnam."
President Trump had been questioning this approach since the mid-1980s. When the administration took office on January 20th, they came in running. On April 2nd, Trump announced sharp tariff numbers that sent shockwaves through the world because he applied pressure to allies and adversaries equally.
"He was saying whether you're an ally or an adversary, you're still not treating us right," Lutnick explained. "He started the process of the customer is always right and America is the greatest consuming customer in the world. Just under $30 trillion that we spend and the rest of the world sells to us."
Trump then reduced tariffs to 10% while negotiations continued, except for China which remained at 55% total. This generated approximately $30 billion per month in revenue. As time passed, the price for market access increased. Countries had to progressively open their markets more and more.
"Now where we are, if you don't smash open your market entirely to America, Donald Trump's not interested," Lutnick said.
Industries Liberated for American Export
The deal unlocks numerous American industries that were previously blocked from European markets. Lutnick provided specific examples of products that Europe refused to buy from America:
Lobster - completely blocked from European markets
Beef and chicken - rejected in favor of imports from Brazil and Argentina
Row crops including corn and soy
Cereals
Medical machinery
Automobiles
"They'd have these standards that basically made it so that we couldn't sell there and they could sell here," Lutnick noted. "And now they've agreed in both Europe and Japan and the UK to accept our standards so that we can just take a car, make it in Detroit and sell it in Europe. And that's just you can't even imagine what a change that is."
Inside the Negotiating Process
Lutnick described his role as setting the table for Trump to close deals. He met with European Union representatives 40 times, and initially they were completely unresponsive.
"In the beginning, they were basically giving me the middle finger. We were nowhere. They wouldn't even respond to us," Lutnick recalled. "And they didn't respond until Donald Trump sent them a letter saying, you know, if you're not going to respond, pay 50%. And then all of a sudden, that changed."
After Trump sent another letter offering 30% tariffs if they engaged more seriously, negotiations accelerated. The threat of sectoral tariffs on automobiles, pharmaceuticals, and semiconductors proved decisive. Trump made clear that America would bring those industries back home unless Europe offered fair terms.
"What he told Europe, if you want to keep half, you better do a deal with me," Lutnick said.
When negotiations reached their limit, Lutnick would bring Trump in to finalize the deal. "I get the deal as far as I can get it. And when I run out of room, I put the greatest negotiator in the world at the table with the counterparty like we did with Europe, like we did with Japan, like we've done with each of these deals, and then he gets a better deal than I ever could."
The Japan Deal: $550 Billion and 90% Profits
Lutnick described the Japan deal as "the coolest deal ever." The Japanese are known as the toughest negotiators on the planet, and their car manufacturing culture is fundamental to their national identity. They could not accept a 25% auto tariff.
Lutnick created a structure where Japan would offer $400 billion in a 50/50 partnership with America. The funds would be spent on production in America for industries the president chose—semiconductors, gas turbines for power generation, or other manufacturing.
When Japanese negotiators entered the Oval Office, Trump improved the deal significantly. The final terms: $550 billion (an additional $150 billion), with 90% of profits going to the American people instead of 50%.
"In exchange for that, the Japanese wanted a 10% reciprocal tariff and 15% on autos. And of course, Donald Trump was able to get 15% across the board," Lutnick explained.
The deal will directly create between 100,000 to 200,000 jobs. Trump will choose which industries to invest in and build them during his term. "The European Union is the biggest and the Japanese deal is the coolest," Lutnick said.
Using Trade to Broker Peace
One of the most remarkable aspects of Trump's trade strategy is using it to end conflicts. Thailand and Cambodia reached a ceasefire deal to end a conflict that displaced over 260,000 people.
Lutnick described how Trump worked over a weekend while planning to fly to Scotland. Trump called both the head of Cambodia and Thailand, offering each the same two paths.
"He's so respectful and he's so kind, but he basically gives them two choices, two paths," Lutnick said. "The path of let's figure out a way to do a ceasefire and I'll do a great trade deal with you and we'll really trade great, and if you can't figure out a way to do a ceasefire you need to start figuring out how to do your business without the United States of America as your client."
Both leaders agreed to a ceasefire. "He uses the power of the economics of the United States of America and the incredible thoughtfulness of the way he thinks about things to use the power of our economy to create peace," Lutnick explained.
Similar approaches brought peace between Pakistan and India (nuclear powers) and Rwanda and Congo. "One after the other after the other. He's using the power of the presidency to create peace."
Potential Rebates for Working Americans
With tariff revenues projected to reach $600 billion, then $700 billion, $800 billion, $900 billion, and potentially a trillion dollars annually, Trump is considering rebates for working Americans.
"The president is thinking about, look, I've created this value, right, from the power of the American economy, from all our people and all their consumption. Why not figure out a way to share some of that money with the people of America?" Lutnick said.
While no final decision has been made, Trump has discussed the idea both publicly and privately. The rebates would represent a down payment to show Americans where the country is heading under the new trade policy.
Five Million High-Paying Jobs Coming to America
Lutnick outlined the vision for American job creation under the reshoring model. The goal is 5 million high-paying, high-tech jobs that have never been available to Americans before.
"Because of automation, we can bring high-tech, cool jobs, vocational jobs, training jobs, technical jobs, jobs that are fun, jobs that are high-paying, you know, starting at $75,000 and getting up to multiple hundreds of thousands of dollars," Lutnick explained.
These jobs represent a shift from coastal elite positions to fundamental American jobs. Workers would be in clean rooms doing manufacturing and technical work, proud of what they produce. "Not doing gender studies at some East Coast school. That's over."
China Negotiations and What's Next
On the biggest trade prize of all, Lutnick kept details close but confirmed that talks with China are ongoing. The opportunity exists to level set what America should do more of with China.
"We should sell them more soybeans and we're happy to buy, you know, inexpensive baby clothes from them. That model is something that we should exaggerate," Lutnick said.
He deferred to the negotiating team for readouts but emphasized that Trump is in the driver's seat and will decide the terms. "It is the big one. But fortunately, we have Donald Trump in the White House to think it through and try to come up with the right path for America."
Mainstream Media Admits Trump Victory
Even outlets typically hostile to the administration acknowledged the significance of the EU deal. The Financial Times called it "a victory for Trump." Multiple commentators described it as the biggest trade deal in Trump's effort to reshape global trading order and agreed the president should take a victory lap.
"I mean, Secretary Lutnick, they're doing my job for me," Kirk noted after playing the clips.
Lutnick responded by noting the transformation in European attitudes. They went from being completely unresponsive to offering to open their markets completely and pay 15% tariffs.
What Lutnick Learned About Trump's Intuition
When asked what he learned about Trump since becoming Commerce Secretary, Lutnick focused on the scale of Trump's intuition.
"He instinctively knows, if you watched him with the EU, he instinctively knows where to push people to the edge to get the most for America, but also leave them feeling good about themselves," Lutnick said. "He knows how to do it. He did it with the Japanese. He understands in a way that I don't think any expert ever understood."
The proof, according to Lutnick, is in the results. Trump understood tariffs in his soul and delivered for the American people while every expert said it was impossible.
"I sit next to him every day and I'm the proudest to sit next to him because I learn from him all the time and that is the coolest job," Lutnick concluded.
