WASHINGTON: US President-elect Donald Trump’s transition team is revising its earlier proposal for universal tariffs, focusing instead on sector-specific tariffs for critical imports, according to sources familiar with the ongoing discussions.
Initially, during his 2024 campaign, Trump pushed for universal tariffs of up to 20% on all imports to the US. However, current conversations suggest a shift toward more targeted tariffs aimed at bolstering national security and economic resilience, while avoiding the potentially harmful price hikes associated with broader tariffs.
Key sectors that may face tariffs include defence, medical supplies, and energy production. Materials such as steel, aluminum, copper, rare earth minerals, syringes, and solar panels are under consideration. However, specific industries or imports are yet to be finalized.
The team is also exploring additional tariffs on countries like China, Mexico, and Canada unless they address issues related to migration and drug trafficking, although the feasibility of such measures remains uncertain.
Economists have raised concerns that the proposed tariffs could lead to higher costs for US businesses, particularly as a significant portion of US imports consist of intermediate goods essential for production. This could potentially harm the global competitiveness of US firms.
Despite these concerns, Trump’s team remains focused on revitalizing US manufacturing, with tariffs seen as a tool to incentivize domestic production. Critics, however, warn that even more targeted tariffs could disrupt supply chains, increase consumer costs, and provoke retaliatory measures from trading partners.
The proposals are being led by key figures in Trump’s transition team, including Vince Haley, Scott Bessent, and Howard Lutnick, who are working to finalize the plans. Although specifics remain unclear, the policy shift indicates a potential challenge to the global trade order and a reevaluation of the US’s economic strategy going forward.
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Trump’s team has yet to comment on the details but reaffirmed their commitment to protecting American manufacturers and workers. The revised tariff strategy is expected to remain a central element of Trump’s economic agenda as he prepares to take office.
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