By Andrea Shalal and Maiya Keidan
WASHINGTON (Reuters) -U.S. Commerce Secretary Howard Lutnick mentioned on Thursday he expects the nation to gather $50 billion a month in tariff revenues or extra – up from $30 billion final month – as increased levies on imports from dozens of nations kick in.
“After which you are going to get the semiconductors, you are going to get prescribed drugs, you are going to get all kinds of further tariff cash coming in,” Lutnick mentioned in an interview with Fox Enterprise Community.
U.S. President Donald Trump’s increased tariffs on imports from dozens of nations took impact on Thursday, elevating the typical U.S. import responsibility 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 may rise to 250% over time.
Particulars of these sectoral tariffs are anticipated in coming weeks after the Commerce Division completes investigations into the impression of these imports on U.S. nationwide safety.
Lutnick advised Fox Enterprise Community that firms may win exemptions from the anticipated semiconductor tariff in the event that they filed plans to construct crops in the US, and people plans have been overseen by an auditor.
“His goal is to get semiconductor manufacturing carried out right here,” he mentioned, predicting that the initiative would end in some $1 trillion in funding to bolster home manufacturing.
Different exemptions have already been agreed, together with with the European Union, which mentioned its settlement to just accept a 15% tariff on most EU exports contains chips, and with Japan, which has mentioned the US agreed to not give it a worse fee than different nations.
The push to spice up home chip manufacturing will not be new.
Congress created a $52.7 billion semiconductor manufacturing and analysis subsidy program in 2022 below former President Joe Biden, and all 5 modern semiconductor corporations agreed final 12 months to find chip factories within the U.S.
Final 12 months the division mentioned 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, mentioned he felt an settlement was doable.
“I believe we’ll depart that to the commerce workforce and to the president to make these selections, however it feels probably that they’ll come to an settlement and prolong that for one more 90 days, however I am going to depart it to that workforce.”
(Reporting by Andrea Shalal and Maiya Keidan; Enhancing by Doina Chiacu and Andrea Ricci)
Keep forward of the curve with NextBusiness 24. Discover extra tales, subscribe to our e-newsletter, and be part of our rising neighborhood at nextbusiness24.com
