US expects $50 billion a month in tariff revenues, US Commerce chief Lutnick says
U.S. Commerce Secretary Predicts $50 Billion Monthly Tariff Revenues
By Andrea Shalal and Maiya Keidan
WASHINGTON (Reuters) – U.S. Commerce Secretary Howard Lutnick stated on Thursday that he anticipates the country to collect $50 billion a month or more in tariff revenues, up from $30 billion the previous month. This increase in revenue is a result of higher levies on imports from numerous countries.
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.”
U.S. President Donald Trump’s implementation of higher tariffs on imports from various countries came into effect on Thursday, leading to the average U.S. import duty reaching its highest level in a century. Countries are now facing tariffs ranging from 10% to 50%.
Furthermore, Trump announced plans to impose a tariff of approximately 100% on imported semiconductor chips unless manufacturers commit to producing in America. Additionally, a small tariff on pharmaceutical imports will gradually increase to 250% over time. Details regarding these sectoral tariffs are expected to be revealed in the upcoming weeks following investigations by the Commerce Department.
Lutnick informed Fox Business Network that companies could potentially secure exemptions from the impending semiconductor tariff by submitting plans to construct plants in the United States, which would be overseen by an auditor. He emphasized, “His objective is to get semiconductor manufacturing done here,” projecting a $1 trillion investment to strengthen domestic manufacturing.
Various exemptions have already been negotiated, including agreements with the European Union and Japan. The push to enhance domestic chip manufacturing is not a recent development, as Congress established a $52.7 billion semiconductor manufacturing and research subsidy program in 2022 under former President Joe Biden. Last year, all five leading-edge semiconductor firms agreed to locate chip factories in the U.S.
In 2021, the department reported that the U.S. produced approximately 12% of semiconductor chips globally, a significant decrease from 40% in 1990. Lutnick expressed optimism about ongoing discussions with China to extend a tariff truce set to conclude on August 12, stating that an agreement seems probable.
“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, but I’ll leave it to that team,” Lutnick added.
(Reporting by Andrea Shalal and Maiya Keidan; Editing by Doina Chiacu and Andrea Ricci)
