Trump Prepares New Tariffs on Steel and Semiconductors

"I will set tariffs next week and the week after on steel and, I would say, on chips," Trump told reporters aboard Air Force One while en route to a meeting with Russian President Vladimir Putin in Alaska. He indicated that the initial rates would be lower to allow companies to develop their domestic production in the United States, with plans for a significant increase thereafter, following a model he also described for tariffs on pharmaceuticals. Trump did not specify exact rates. "I will have a rate that will be lower at the beginning - giving them a chance to come and build - and very high after a certain period of time," he stated. He expressed confidence that companies would choose to manufacture in the United States rather than face high tariffs. In February, Trump raised tariffs on steel and aluminum to a fixed rate of 25%, but announced in May that he would double the rate to 50% to boost domestic manufacturers. Reuters.