By Andrea Shalal
WASHINGTON (Reuters) -U.S. President-elect Donald Trump on Monday denied a newspaper report that mentioned his aides had been exploring tariff plans that may solely cowl essential imports, deepening uncertainty amongst enterprise leaders about future U.S. commerce insurance policies.
Trump responded on his Reality Social platform after the Washington Put up cited three sources acquainted with the matter as saying that Trump aides had been exploring a narrower method to tariffs, targeted on sure essential sectors.
“The story within the Washington Put up, quoting so-called nameless sources, which do not exist, incorrectly states that my tariff coverage can be pared again. That’s fallacious. The Washington Put up is aware of it is fallacious. It is simply one other instance of Pretend Information,” he wrote in a publish on Reality Social.
The Washington Put up had reported that Trump aides had been exploring tariff plans that may be utilized to each nation however solely cowl sure sectors deemed essential 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 towards 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, increase prices and draw retaliation towards U.S. exports. He later mentioned he would impose a 25% tariff on Canadian and Mexican imports on his first day in workplace, which might result in sharp will increase in the price of gasoline.
The aides mentioned the plans are in flux and haven’t been finalized, based on the newspaper.
“All of it appears unsure and unsettled,” mentioned John Murphy, a senior vice chairman on the U.S. Chamber of Commerce, a strong Washington-based lobbying group. “We have been listening to a quiet denial of the concept that there can be a number of exclusions from a few of these tariffs plans.”
Whereas tariffs imposed throughout Trump’s first time period did not ship inflation hovering, they did lead to a noticeable drop in international and home funding and enterprise sentiment, he mentioned. “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 Put up report mentioned 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, by tariffs on metal, iron, aluminum and ; essential medical provides comparable to pharmaceutical supplies; and power manufacturing, together with batteries, uncommon earth minerals and photo voltaic panels.”
Reuters final month reported {that a} Trump transition group doc really helpful 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, essential minerals and charging parts. The proposal seen by Reuters mentioned 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 essential minerals, together with graphite and lithium wanted for batteries, and rare-earth metals utilized in each EV motors and navy plane.
