The U.S. government expects to generate at least $50 billion monthly from import tariffs according to Commerce Secretary Howard Lutnick after implementing broad new duties. The projected revenue exceeds July’s $30 billion mark because the administration has started imposing maximum 50% tariffs on imports from multiple countries.
During his appearance on Fox Business Lutnick predicted that administration revenue would increase because the government plans to target semiconductors and pharmaceuticals and other high-value sectors. Security reviews will lead to a 100% tariff on imported chips and a phased 250% levy on particular pharmaceutical products.
Lutnick announced that companies can obtain tariff exemptions through their commitment to construct U.S.-based factories which will be monitored by independent third parties. The administration aims to establish semiconductor manufacturing facilities within the United States according to Lutnick who predicts $1 trillion worth of associated investments.
The 2022 subsidy package under President Biden allocated $52.7 billion for domestic chip production while Trump expanded his trade initiative. The EU and Japan have established tariff agreements which provide them with beneficial trade conditions.
Lutnick expressed positive expectations about China trade talks while indicating that the August 12 tariff truce might receive a 90-day extension. The White House trade team maintains authority to make the last decisions regarding these ongoing negotiations.
