President-elect Trump has vowed to impose a new slate of tariffs on imported goods as part of an effort to boost domestic production, raise federal revenues and punish competing nations, but the exact details of the plan are still unknown.
During the campaign, Trump said he envisioned across-the-board tariff increases of 10% to 20%, with higher rates on China and possibly Mexico and Canada, but The Washinton Post’s Jeff Stein reported Monday that Trump’s aides were considering a less comprehensive set of tariffs that focus on critical sectors such as defense and energy.
Trump quickly pushed back on the reporting. “The story in the Washington Post, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back. That is wrong,” the president-elect said on his social media platform. “It's just another example of Fake News.”
Still, the incoming administration has yet to produce a proposal, and the Post report highlights some of the tensions Trump’s advisers are likely dealing with while working on the policy details. While Trump has expressed profound faith in the efficacy of tariffs – “The Tariffs, and Tariffs alone, created this vast wealth for our Country,” he said last week, referring to the 19th century, “Tariffs will pay off our debt and, MAKE AMERICA WEALTHY AGAIN!” – some economists have warned that tariffs could be counterproductive, raising prices on all kinds of goods for American consumers while risking a reignition of inflation.
An unnamed Trump adviser quoted in the Post report highlighted the tensions in play. “The sector-based universal tariff is a little bit easier for everybody to stomach out the gate,” the adviser said. “The thought is if you’re going to do universal tariffs, why not at least start with these targeted measures? And it would still give CEOs a massive incentive to start making their products here.”
The bottom line: Trump is sticking to his guns on an across-the-board tariff increase, but it’s too soon to tell if his stance is more a matter of pre-negotiation rhetoric or an unshakable desire to ratchet import fees higher for every nation that sells goods in the U.S.
