Trump Team Studies Gradual Tariff Hikes Under Emergency Powers

Published On Jan 13, 2025, 6:45 PM

Members of President-elect Donald Trump’s economic team are considering a proposal to gradually increase tariffs each month as a strategy to enhance negotiating power while minimizing inflation spikes. The plan, still under discussion and not fully presented to Trump, might involve increasing tariffs by 2% to 5% monthly, leveraging executive powers under the International Emergency Economic Powers Act. This approach comes amid concerns over how new tariffs would affect the US economy and shaping investor expectations. It has been noted that the potential increase in tariffs has led to a strengthening of currencies like the Chinese yuan, as markets react to the uncertainty regarding trade policies.