A contentious dispute over a mineral deal with Ukraine occurred in the Situation Room in February 2025, involving Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, according to an account in the book "Regime Change: Inside the Imperial Presidency of Donald Trump" by Maggie Haberman and Jonathan Swan.
The confrontation arose as both officials pursued separate agreements with Ukraine. Bessent had traveled to Kyiv earlier in February to negotiate a deal with Ukrainian President Volodymyr Zelensky, but returned without an agreement. Lutnick then stepped in to secure a deal.
The book reports that Lutnick presented his deal during a meeting of top officials, sliding it across the table to Bessent. The two cabinet members, whose "natural antipathy toward each other was further exacerbated by the fact that Lutnick had originally wanted Bessent's job," according to the authors, engaged in a heated exchange.
Bessent criticized Lutnick's proposed deal, stating, "This is a s***ty deal. You're an idiot." He argued that Lutnick's agreement capped the potential revenue at $500 billion, whereas Bessent's own version aimed for $1 to $2 trillion by focusing on revenues rather than earnings. Lutnick countered that Bessent's deal was unrealistic and would cripple Ukraine financially, suggesting Bessent did not understand how such agreements worked.
Lutnick had reportedly pushed aggressively to become Treasury secretary after leading the transition team, leading to his appointment as Commerce Secretary instead. The book suggests a significant difference in the proposed deals: Bessent's was based on 50 percent of total revenues, while Lutnick's focused on a smaller percentage of profits (earnings).
According to the authors, Bessent relayed his view of the situation to President Trump, stating, "Howard's f***ed up the deal. I had an uncapped deal and we're getting revenues not earnings." Trump reportedly then mocked Lutnick.
This incident occurred approximately a week before Trump's widely reported shouting match with Zelensky in the Oval Office on February 28, 2025. A spokesperson for the White House defended Lutnick, stating he is "leveraging his Wall Street experience to secure fair trade deals and trillions in investments into American manufacturing."
The Daily Mail had previously reported on a separate argument between Lutnick and Bessent at the Ned's Club of Washington in April 2024, which representatives for both denied.