Washington: U.S. President Donald Trump announced that his administration could introduce higher tariffs on semiconductors and pharmaceuticals than the current 25 percent duty on automobile imports, citing a "bigger margin" for these industries.
According to Yonhap News Agency, Trump made these comments during a press availability session, addressing a question concerning the potential effects of his administration's proposal to reduce auto tariffs on South Korea, Japan, and the European Union to 15 percent. Trump emphasized that he has not compromised on any deals, arguing that these countries paid no tariffs previously, and now face a 15 percent tariff, with the possibility of higher rates for other sectors like semiconductors and pharmaceuticals.
Last month, Trump revealed plans to impose a tariff of about 100 percent on semiconductors and initially set small tariffs on pharmaceutical imports, with a long-term plan to increase them to 150 percent within a year and eventually to 250 percent. These measures are being pursued under Section 232 of the Trade Expansion Act of 1962, which allows the president to adjust imports if they pose a threat to national security.
Trump also touched upon an ongoing Supreme Court case regarding his administration's global tariffs, underscoring the significance of these tariffs. He stated that winning the case would position the U.S. as the wealthiest nation globally, enabling it to better assist its citizens and other countries selectively.
The imposition of tariffs has been a central strategy for Trump, aimed at boosting federal revenue, attracting foreign investments, reducing trade deficits, and strengthening domestic manufacturing.