Howard Lutnick Says 'Tariffs Are Working,' Slams Critics After ISM Manufacturing Beats Expectations: 'The So-Called Experts Were Wrong'

U.S. Commerce Secretary Howard Lutnick declared a major victory for the Donald Trump administration's trade agenda on Tuesday, pointing to a surprisingly strong rebound in factory activity as definitive proof that protectionist policies are delivering results.

Historic Rebound

The Institute for Supply Management (ISM) reported that the manufacturing sector expanded in January for the first time in over two years, snapping a historic streak of contraction.

The Manufacturing PMI surged to 52.6%, up from 47.9% in December, exceeding analysts’ expectations and crossing the 50% mark that separates growth from contraction.

Lutnick immediately credited the turnaround to the White House’s aggressive economic strategy.

“For the first time in over two years the United States has delivered manufacturing expansion, all thanks to President Trump’s trade policies,” Lutnick stated on social media. “President Trump is leading America’s manufacturing revival.”

Vindication Against ‘Experts’

The Commerce Secretary used the data to push back against economists who warned that tariffs might stifle growth. With the sector emerging from 26 straight months of contraction, Lutnick framed the report as a rebuttal to policy critics.

“Tariffs are working as we said strengthening American manufacturing while reducing imports,” Lutnick wrote. “Once again, the so-called experts were wrong”.

Broad-Based Growth

The ISM report highlighted significant underlying strength in the sector. The New Orders Index jumped to 57.1%, an increase of 9.7 percentage points, while the Production Index climbed to 55.9%.

“Three (New Orders, Production, and Supplier Deliveries) are in expansion territory, one more than in December,” noted Susan Spence, Chair of the ISM Manufacturing Business Survey Committee.

While Lutnick touted a reduction in imports, the ISM data showed the Imports Index registering at 50.0%, indicating volumes remained “Unchanged” after contracting in December.

Meanwhile, nine industries reported growth, led by Printing & Related Support Activities and Apparel, Leather & Allied Products.

Benchmark Indices Rebound After A Mixed Week

After the top U.S. indices closed mixed in the last week, the S&P 500, Nasdaq Composite, and Dow Jones indices rebounded on the first trading day of February.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher on Monday. The SPY was up 0.50% at $695.41, while the QQQ advanced 0.69% to $626.14.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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