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New trade wars on the horizon: Trump signals return of ‘isolationist’ Lighthizer

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Robert Lighthizer, who served as U.S. Trade Representative (USTR) during Donald Trump’s first term and was instrumental in initiating the U.S.-China trade war, has been offered a return to the same role.

Sources familiar with Trump’s transition team discussions told Financial Times (FT) that Lighthizer has been asked to resume the USTR position, despite his interest in other posts, including a possible role at the Department of Commerce.

Lighthizer has also expressed interest in the Treasury Secretary position, though this role is expected to go to a financial sector expert, with candidates including hedge fund managers Scott Bessent and John Paulson.

Given Lighthizer’s influence in shaping trade policy during Trump’s first term, particularly with his “isolationist” stance, his potential reappointment could raise concerns in Beijing and among U.S. allies. Trump has previously pledged to impose high tariffs on imported goods, especially those from China.

Although Trump considered Lighthizer for Commerce Secretary, insiders suggest he is more likely to offer this position to Linda McMahon, the billionaire co-chair of Trump’s presidential transition team.

Democrats support Lighthizer’s appointment

Representative Brendan Boyle of Philadelphia, the ranking Democrat on the House Ways and Means Committee—which oversees trade—expressed support for Lighthizer’s appointment. “I worked with Bob Lighthizer on the US-Mexico-Canada Agreement (USMCA) during his tenure as USTR. He was bipartisan in his approach and respected across the political aisle,” Boyle commented.

With three decades at Wall Street firm Skadden Arps, Lighthizer fought for U.S. steel interests against imports from China, representing companies like U.S. Steel. In a recent book, he even praised aspects of Biden’s trade policies, noting, “Our success explains why the Biden administration has continued many of the U.S. trade policy changes that President Trump, and I initiated.”

The ‘missile man’ who faced Japan

Lighthizer was also instrumental in the U.S.-Japan trade war of the 1980s, earning the nickname ‘Missile Man’ for his aggressive negotiation style. During heated talks, he famously folded one of Japan’s proposals into a paper airplane and launched it back at the Japanese delegation. Appointed Deputy USTR in 1983, Lighthizer played a critical role in pressuring Japan to limit exports of steel, cars, and other goods—a strategy he later adapted for renegotiating NAFTA and other trade agreements.

Criticism of free trade and industrial job losses

In the early 2000s, Lighthizer advocated for tariffs on steel imports to protect U.S. industries. Shortly before the recent U.S. election, he wrote an opinion piece in Financial Times blaming free trade for manufacturing job losses and describing the U.S. trade deficit as “alarming.” “Facing a system that is fundamentally failing our country, Trump has resolved to take decisive action,” Lighthizer wrote.

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