New US govt warns of tariffs on chips, metals

President Donald Trump said Monday that the United States will soon place tariffs on foreign-made semiconductor chips, pharmaceuticals and metals such as steel.

Speaking at a Republican congressional retreat in Miami, Trump said the levies could take place in the "very near future," so as to "return production of these essential goods to the United States of America."

"If you want to stop paying the taxes or the tariffs, you have to build your plant right here in America," he added.

Tariffs are a key part of Trump's economic agenda.

During his first administration, he ordered sweeping tariffs on imported steel and aluminum, targeting allies like Canada, Mexico and the European Union.

But these led to retaliatory measures from the key US trading partners.

Economists have warned that tariffs could weigh on growth and add to inflation, as they are generally paid by importers bringing products into the United States.

The importers can then pass those costs on to American consumers.

But those in Trump's circle have pointed to tariffs as a means for negotiation and to remedy unfair trade practices.

"I'll also be placing tariffs on steel, aluminum and copper and things that we need for our military," he said.