U.S. Secretary of Commerce Howard Lutnick is forecasting revenue growth despite President Donald Trump’s announcement of higher pharmaceutical and semiconductor chip taxes that have not yet been launched.
The US expects tariffs to bring at least $50 billion a month as higher collections begin on imports from dozens of countries.
U.S. Secretary of Commerce Howard Lutnick outlined the revenue projected Thursday. That’s a $200 billion increase last month, which saw tariffs bring in $300 billion.
“And you’re trying to get semiconductors, you’re trying to get medicines, you’re going to get all sorts of extra charges,” Rutnick said in an interview with Fox Business Network.
President Donald Trump’s tariffs on imports from dozens of countries came into effect Thursday, bringing the average US import tariff to the highest in a century, with countries facing 10% to 50% tariffs.
Trump announced Wednesday that he plans to collect about 100% tariffs on imported semiconductor chips, unless the manufacturer promises to produce in the US, and a small tariff on imports of medicines that rise to 250% over time.
Details of tariffs for these sectors are expected in the coming weeks after the Commerce Department completes an investigation into the impact of these imports on US national security.
Lutnick told Fox Business Network that companies could obtain anticipated semiconductor tariff exemptions if they submit plans to build plants in the US, and that those plans were overseen by auditors.
“(Trump’s) goal is to manufacture semiconductors here,” he said, predicting the initiative would bring about approximately $1 trillion in investments to strengthen domestic manufacturing.
Other exemptions, including the European Union, have already been agreed. The European Union has included an agreement to accept 15% tariffs on most EU exports, and the US has agreed not to give any worse rates than other countries.
Pushing to strengthen domestic chip manufacturing is not new.
The US Congress created a $52.7 billion semiconductor manufacturing and research grant program under former President Joe Biden in 2022, with all five cutting-edge semiconductor companies agreeing to find a US chip factory last year.
Last year, the Commerce Department said the US produced around 12% of its semiconductor chips globally, starting from 40% in 1990.
Lutnick asked about separate talks with China about extending the tariff ceasefire, which is scheduled to end on August 12, but he said he felt an agreement was possible.
“I think we’re going to leave it to the trade team and the president and make those decisions,” he said. “I feel like it’s likely that they’ll reach an agreement and extend it for another 90 days, but I’ll leave it to that team.”
