Trump team mulls narrowing universal tariffs, Washington Post reports
Aides to president-electDonald Trump are considering a tariff plan that would apply to all countries but be limited to specific critical imports, the Washington Post reported, citing three people familiar with the discussions who it didn’t identify.
If implemented, the plan would mark a significant narrowing of the universal tariffs of 10 per cent to 20 per cent that Trump had proposed during his campaign, a move economists expect to drive up consumer prices and distort patterns of global trade.
Trump’s transition team didn’t immediately respond to a request for comment.
The U.S. dollar fell against most major currencies Monday after the report, with the Bloomberg Dollar Spot Index declining 0.9 per cent, its biggest drop since November, while the euro rallied more than one per cent against the greenback. Investors also added to bets on United States Federal Reserve interest-rate cuts on speculation the policy won’t fuel inflation as much as a broader program.
Which sectors or goods would be targeted wasn’t immediately clear but would likely focus on those seen as key for economic and national security, and discussions have focused on those that Trump intends to bring back to the U.S., according to the report.
Trump’s focus potentially includes the defence industrial supply chain — through tariffs on steel, iron, aluminum and copper — as well as critical medical supplies, such as syringes, needles, vials and pharmaceutical materials. Trump could also target energy materials including batteries, rare earth minerals and solar panels, the Post reported, citing two of the people.
It’s unclear if the approach toward universal tariffs would also apply to other policies Trump has proposed. Those include slapping duties on an
Read more on financialpost.com
