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 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 further tariff cash coming in,” Lutnick mentioned 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 international locations going through tariffs of 10% to 50%.
Trump on Wednesday additionally introduced plans to levy a tariff of about 100% on imported semiconductor chips except 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 influence 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 vegetation in the US, and people plans had been overseen by an auditor.
“His goal is to get semiconductor manufacturing executed right here,” he mentioned, 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 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 international locations.
The push to spice up home chip manufacturing shouldn’t 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 companies agreed final yr to find chip factories within the U.S.
Final yr 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 feel we will go away that to the commerce staff and to the president to make these choices, nevertheless it feels probably that they will come to an settlement and prolong that for an additional 90 days, however I am going to go away it to that staff.”
(Reporting by Andrea Shalal and Maiya Keidan; Enhancing by Doina Chiacu and Andrea Ricci)