According to Korean media reports, US President Trump said today that the U.S. government's tax rate on imported semiconductors and drugs may be higher than the 25% tax rate for imported cars, because chips and pharmaceutical manufacturers have...
According to Korean media reports, US President Trump said today that the U.S. government's tax rate on imported semiconductors and drugs may be higher than the 25% tax rate for imported cars, because chips and pharmaceutical manufacturers have "greater room for profit."
After Trump took office this year, he has imposed taxes on imported steel, automobiles and other products. The BBC pointed out that the current tax rate for most foreign-made cars, engines and other automobile parts is 25%.
According to the Korean Herald report, when Trump accepted media questions today, some reporters concerned the government's "step" and reduced the tariffs on cars in South Korea, Japan and the European Union (EU) to 15%, which may have an impact on American car manufacturers. Trump said: "I didn't give up anything, where did I give up?"
Trump then said: "They didn't pay anything, they now have to pay 15%, and some things may pay more. If the chips may pay more, the medicine may pay more, because the profit margins (of these industries) are greater."
Trump claimed in August that the US government would charge about 100% tax on semiconductor products, and imported drugs would first charge "small amounts" taxes, then increase to 150% in the next year, and then rise to 250%.
Trump is considering taxes on semiconductors and pharmaceuticals industries in accordance with Section 232 of the Trade Expansion Act of 1962. The law provides general rights and can be adjusted when determining that imported products threaten national security.
