Trump denies report that his group is eyeing pared-back tariffs

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 will solely cowl crucial imports, deepening uncertainty amongst enterprise leaders about future U.S. commerce insurance policies.

Trump responded on his Fact 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 crucial sectors.

“The story within the Washington Put up, quoting so-called nameless sources, which do not exist, incorrectly states that my tariff coverage will likely be pared again. That’s fallacious. The Washington Put up is aware of it is fallacious. It is simply one other instance of Faux Information,” he wrote in a put up on Fact Social.

The Washington Put up had reported that Trump aides had been exploring tariff plans that will be utilized to each nation however solely cowl sure sectors deemed crucial to nationwide or financial safety, in what would have represented a marked shift from guarantees Trump made through 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 international imports into the U.S. together with a 60% tariff on Chinese language items – duties that commerce specialists say would upend commerce flows, increase prices and draw retaliation in opposition to U.S. exports. He later mentioned 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 mentioned the plans are in flux and haven’t been finalized, in line with the newspaper.

“All of it appears unsure and unsettled,” mentioned John Murphy, a senior vp 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 could be a lot 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 end in 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 potential, 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 copper; crucial medical provides comparable to pharmaceutical supplies; and vitality manufacturing, together with batteries, uncommon earth minerals and photo voltaic panels.”

Reuters final month reported {that a} Trump transition group doc really useful 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 referred to as for charging tariffs on “EV provide chain” imports together with batteries, crucial minerals and charging parts. The proposal considered 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 crucial minerals, together with graphite and lithium wanted for batteries, and rare-earth metals utilized in each EV motors and army plane.