NextFin news, WASHINGTON, D.C. — On Tuesday, September 16, 2025, U.S. President Donald Trump announced that tariffs on semiconductors and pharmaceuticals could be set higher than the 25 percent tariff currently imposed on automobiles. Trump made the remarks while speaking to reporters outside the White House before departing for a state visit to the United Kingdom.
Responding to questions about concerns that lowering auto tariffs from 25 percent to 15 percent might harm U.S. automakers, Trump said, "I have not compromised on anything," emphasizing that tariffs on other products could be higher. He specifically mentioned that semiconductors and pharmaceuticals, which have higher profit margins than automobiles, could face tariffs exceeding those on cars.
Trump has previously indicated that semiconductor tariffs could reach 100 percent, and pharmaceutical tariffs could range between 150 to 250 percent. These tariffs are being considered under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs on imports deemed a threat to national security.
The current 25 percent tariff on automobiles and auto parts was imposed by the Trump administration citing national security concerns. Recently, trade agreements have lowered tariffs on Japanese automobiles from 27.5 percent to 15 percent, effective September 16, 2025, while South Korean automobiles remain subject to the 25 percent tariff amid ongoing negotiations.
Trump also highlighted the revenue generated from tariffs, stating, "The EU pays us $950 billion due to tariffs, and Japan pays $65 billion," and asserted that before his administration, companies and countries paid no tariffs to the U.S.
Regarding the legal challenges to his tariff policies, Trump expressed confidence in the U.S. Supreme Court, which is set to hear arguments that could determine the fate of his administration's global tariffs. He said, "All legal experts say we won that case, but we still have to wait. The Supreme Court has been great so far, and I think the Supreme Court is very fair."
In addition to tariffs, Trump mentioned progress in trade talks with China concerning the Chinese video platform TikTok. He said he had reached an agreement with China and planned to speak with Chinese President Xi Jinping on Friday, September 19, 2025, to finalize the deal. The negotiations involve transferring majority ownership of TikTok's U.S. business to American companies to address national security concerns.
Trump's statements reflect ongoing efforts to use tariffs as a tool to increase federal revenue, reduce trade deficits, and protect domestic industries. The potential imposition of higher tariffs on semiconductors and pharmaceuticals could have significant implications for international trade and economies, particularly those of South Korea and other U.S. trading partners.
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