President-elect Donald Trump, as photographed at Turning Point USA’s AmericaFest in Phoenix on December 22, 2024, is reportedly weighing a new tariff strategy. According to the Washington Post, this revised plan would continue to levy tariffs on all countries but would limit the scope to particular goods and services.
While this strategy may not be as sweeping as Trump’s initial proposals, it could still significantly alter global trade dynamics, the report notes, citing individuals familiar with Trump’s agenda. However, Trump has dismissed these claims, taking to Truth Social to clarify.
He stated, “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.”
This report emerges amidst concerns about Trump’s aim to impose universal tariffs of 10% or 20%, particularly targeting nations like China and Mexico, which could potentially lead to another inflation surge.
In Trump’s previous term, tariffs on a wide array of imports had minimal effects on overall prices, and these measures continued under President Joe Biden. Nevertheless, economists are now apprehensive, suggesting that the current economic climate might amplify the impact of aggressive tariff strategies.
While the specifics of the plan are still uncertain, early discussions hint at potential impacts on sectors such as industrial metals, medical supplies, and energy. This comes at a time when the U.S. is grappling with a $74 billion monthly trade deficit, a situation that intensified during the COVID pandemic.
