U.S. Commerce Secretary Predicts Increase in Tariff Revenues
By Andrea Shalal and Maiya Keidan
WASHINGTON (Reuters) – U.S. Commerce Secretary Howard Lutnick stated on Thursday that he anticipates the United States to collect $50 billion a month or more in tariff revenues, up from $30 billion last month. This increase is expected as higher levies on imports from numerous countries come into effect.
Lutnick mentioned in an interview with Fox Business Network, “And then you’re going to get the semiconductors, you’re going to get pharmaceuticals, you’re going to get all sorts of additional tariff money coming in.”
President Donald Trump’s implementation of higher tariffs on imports from various countries began on Thursday, raising the average U.S. import duty to its highest level in a century, with tariffs ranging from 10% to 50%.
Additionally, Trump announced plans to impose a tariff of approximately 100% on imported semiconductor chips unless manufacturers commit to producing in America. There will also be a small tariff on pharmaceutical imports that could increase to 250% over time.
The specific details of these sectoral tariffs are expected to be disclosed in the upcoming weeks after the Commerce Department concludes investigations into the impact of these imports on U.S. national security.
Lutnick revealed that companies could potentially receive exemptions from the forthcoming semiconductor tariff if they submit plans to construct plants in the United States, subject to oversight by an auditor.
He emphasized, “His objective is to get semiconductor manufacturing done here,” and predicted that this initiative would lead to approximately $1 trillion in investment to enhance domestic manufacturing.
Various exemptions have already been negotiated, including with the European Union, which agreed to a 15% tariff on most EU exports, encompassing chips. Japan has also reached an agreement with the United States to receive a comparable rate to other countries.
The effort to bolster domestic chip manufacturing is not a recent development. In 2022, Congress established a $52.7 billion semiconductor manufacturing and research subsidy program under former President Joe Biden. Last year, the five leading-edge semiconductor firms committed to establishing chip factories in the U.S.
According to recent data from the department, the U.S. produced approximately 12% of semiconductor chips globally in 2021, down from 40% in 1990.
Regarding ongoing discussions with China to extend a tariff truce set to expire on August 12, Lutnick expressed optimism about reaching an agreement. He stated, “I think we’re going to leave that to the trade team and to the president to make those decisions, but it feels likely that they’re going to come to an agreement and extend that for another 90 days.”
(Reporting by Andrea Shalal and Maiya Keidan; Editing by Doina Chiacu and Andrea Ricci)
