By Andrea Shalal and Maiya Keidan
WASHINGTON (Reuters) -U.S. Commerce Secretary Howard Lutnick stated on Thursday he expects the nation to gather $50 billion a month in tariff revenues or extra – up from $30 billion final month – as larger levies on imports from dozens of nations kick in.
“After which you are going to get the semiconductors, you are going to get prescription drugs, you are going to get all types of extra tariff cash coming in,” Lutnick stated in an interview with Fox Enterprise Community.
U.S. President Donald Trump’s larger tariffs on imports from dozens of nations took impact on Thursday, elevating the common U.S. import obligation to its highest in a century, with nations going through tariffs of 10% to 50%.
Trump on Wednesday additionally introduced plans to levy a tariff of about 100% on imported semiconductor chips until producers commit to supply in America, in addition to a small tariff on pharmaceutical imports that will rise to 250% over time.
Particulars of these sectoral tariffs are anticipated in coming weeks after the Commerce Division completes investigations into the affect of these imports on U.S. nationwide safety.
Lutnick informed Fox Enterprise Community that firms might win exemptions from the anticipated semiconductor tariff in the event that they filed plans to construct vegetation in the US, and people plans have been overseen by an auditor.
“His goal is to get semiconductor manufacturing accomplished right here,” he stated, predicting that the initiative would lead to some $1 trillion in funding to bolster home manufacturing.
Different exemptions have already been agreed, together with with the European Union, which stated its settlement to just accept a 15% tariff on most EU exports consists of chips, and with Japan, which has stated the US agreed to not give it a worse fee than different nations.
The push to spice up home chip manufacturing just isn’t new.
Congress created a $52.7 billion semiconductor manufacturing and analysis subsidy program in 2022 underneath former President Joe Biden, and all 5 modern semiconductor companies agreed final 12 months to find chip factories within the U.S.
Final 12 months the division stated the U.S. produced about 12% of semiconductor chips globally, down from 40% in 1990.
Lutnick, requested about separate talks underway with China on extending a tariff truce that is because of finish on August 12, stated he felt an settlement was attainable.
“I feel we’ll depart that to the commerce workforce and to the president to make these choices, however it feels doubtless that they will come to an settlement and lengthen that for an additional 90 days, however I will depart it to that workforce.”
(Reporting by Andrea Shalal and Maiya Keidan; Enhancing by Doina Chiacu and Andrea Ricci)
