The dispute over tariffs is simmering in the Trump team

The dispute over tariffs is simmering in the Trump team

President-elect Donald Trump continues to push for universal tariffs on imports from abroad as his trade advisers work to develop a strategy to translate his campaign promises into policy action. This is reported by several people familiar with the matter.

Planned tariffs and trade balance

In internal discussions, Trump's aides are focused on crafting plans that closely follow the blanket tariffs Trump proposed as a candidate - 10% on imports from all countries and a 60% levy on goods from China. At the same time, they recognize that adjustments may be necessary to reflect political or economic realities, three sources said.

Tariffs for key industries

Trump's team is considering imposing tariffs on a specific selection of critical industries, either before or as part of a broader tariff program. This is intended to highlight trade imbalances and boost manufacturing activity in the US. Discussion about these measures remains active, with the precise contours of the policy in flux. No final decisions have been made so far.

Reactions to media reports

The Washington Post was first to report on the selection of some critical industries being considered for a first wave of universal tariffs. In a post on Truth Social, Trump took exception to the article's description, which said the measure would weaken his campaign promises. "The Washington Post story, which purports to cite anonymous sources - which do not exist - falsely represents that my tariff policy is being weakened. This is false," he wrote.

Economic considerations

Trump's top economic advisers are considering how to move forward with a tool similar to the tariffs he has proposed while limiting the impact on the stock market and consumer prices. This ideological debate is reminiscent of Trump's first term, when Steven Mnuchin and Gary Cohn - Wall Street executives who headed the Treasury Department and the National Economic Council - made a loud call to stop or reduce Trump's proposed tariffs for fear of retaliation and a recession.

Consultants and their views

Trump's newly elected Treasury secretary, hedge fund investor Scott Bessent, is "not entirely sold" on the idea of ​​universal tariffs on all goods, according to people who have spoken to him. Howard Lutnick, Trump's pick for commerce secretary, has promoted the use of tariffs as a negotiating tactic. Larry Kudlow, Trump's confidant and former economic adviser, suggested that tariffs could offset the costs of tax cuts. Peter Navarro, probably Trump's most outspoken adviser, has argued from the start that tariffs should be used at all costs.

Prospects for US industry

Jared Kushner, Trump's son-in-law who worked on international economic policy during the first term, recently said that "more work" is probably needed on tariffs on China. “What I think President Trump wants is he just wants a level playing field,” Kushner said in a podcast in late December. “He says as long as we all compete on the same principles, he has great confidence in American industry to outperform the rest of the world.”