U.S. President-elect Donald Trump on Monday denied a newspaper report that stated his aides have been exploring tariff plans that might solely cowl important imports, deepening uncertainty amongst enterprise leaders about future U.S. trade policies.
Trump responded on his Fact Social platform after the Washington Submit cited three sources conversant in the matter as saying that Trump aides have been exploring a narrower strategy to tariffs, targeted on sure important sectors.
“The story within the Washington Submit, quoting so-called nameless sources, which don’t exist, incorrectly states that my tariff coverage will likely be pared again. That’s fallacious. The Washington Submit is aware of it’s fallacious. It’s simply one other instance of Pretend Information,” he wrote in a publish on Fact Social.
The Washington Submit had reported that Trump aides have been exploring tariff plans that might be utilized to each nation however solely cowl sure sectors deemed important to nationwide or financial safety, in what would have represented a marked shift from guarantees Trump made throughout the 2024 presidential marketing campaign.
U.S. and European shares rallied sharply on Monday after the newspaper report, and remained up regardless of Trump’s denial. The U.S. greenback pared declines in opposition to a basket of different currencies following the Trump assertion.
Trump, a Republican who takes workplace on Jan. 20, had vowed to impose tariffs of 10% on world imports into the U.S. together with a 60% tariff on Chinese language items – duties that commerce consultants say would upend commerce flows, elevate prices and draw retaliation in opposition to U.S. exports. He later stated he would impose a 25% tariff on Canadian and Mexican imports on his first day in workplace, which may result in sharp will increase in the price of gasoline.
The aides stated the plans are in flux and haven’t been finalized, based on the newspaper.
“All of it appears unsure and unsettled,” stated John Murphy, a senior vice chairman on the U.S. Chamber of Commerce, a strong Washington-based lobbying group. “We’ve been listening to a quiet denial of the concept there could be plenty of exclusions from a few of these tariffs plans.”
Whereas tariffs imposed throughout Trump’s first time period didn’t ship inflation hovering, they did end in a noticeable drop in overseas and home funding and enterprise sentiment, he stated. “The earlier we will have readability and stability and keep away from the hefty value of those tariffs to the diploma attainable, the higher.”
The Washington Submit report stated it was not clear which sectors the tariffs would goal, with preliminary discussions largely targeted on a number of key sectors, together with the protection industrial provide chain, via tariffs on metal, iron, aluminum and copper; important medical provides akin to pharmaceutical supplies; and vitality manufacturing, together with batteries, uncommon earth minerals and photo voltaic panels.”
Reuters final month reported {that a} Trump transition workforce doc beneficial imposing tariffs on all electrical battery supplies globally in a bid to spice up U.S. manufacturing after which negotiating particular person exemptions with allies.
It known as for charging tariffs on “EV provide chain” imports together with batteries, important minerals and charging elements. The proposal seen by Reuters stated the administration ought to use Part 232 tariffs, which goal nationwide safety threats, to restrict imports of such merchandise.
The Protection Division in recent times has highlighted U.S. strategic vulnerabilities due to China’s dominance of the mining and refining of important minerals, together with graphite and lithium wanted for batteries, and rare-earth metals utilized in each EV motors and army plane.
—Andrea Shalal and Shivani Tanna, Reuters