Investing.com – Members of President-elect Donald Trump's economic team are reportedly discussing a plan to gradually increase tariffs, according to a report from Bloomberg, citing people familiar with the matter. This approach aims to enhance negotiating power and prevent sudden increases in inflation. The proposal is still in its early stages and has not yet been presented to Trump.
The plan includes a schedule of tiered tariffs, which will increase by approximately 2% to 5% each month. The proposed tariff increases will be implemented under the implementing powers of the International Emergency Economic Powers Act.
The team working on this plan includes Scott Besent, nominated for Secretary of the Treasury, Kevin Hassett, who is scheduled to serve as director of the National Economic Council, and Stephen Meiran, nominated to lead the Council of Economic Advisers. The sources requested anonymity due to the nature of internal discussions.
During the 2024 presidential campaign, Trump proposed minimum tariffs of 10% to 20% on all imported goods, and 60% or higher on shipments from China. Since his election victory in November, there have been multiple reports about how serious he is about his plans to implement tariffs. However, Trump dismissed one report of a planned firing as false.
The index fell below its level on November 5, just before Trump's election, earlier Monday, but later rebounded. Investors have been selling Treasuries on fears of persistent inflation, partly due to new tariffs, creating a challenging environment for stocks and the broader economy.
With Inauguration Day just one week away, economists can only speculate about how Trump's trade wars will impact the economy. Kristalina Georgieva, Executive Director of the International Monetary Fund, said that tariff threats are already raising long-term borrowing costs globally. Uncertainty surrounding the incoming administration's trade policies is contributing to global economic pressures.
This article was created with the power of artificial intelligence and reviewed by an editor. For more information, see our terms and conditions.
