Sunday, January 19, 2025, 7:58PM |  24°
MENU
Advertisement
Members of incoming President Donald Trump’s economic team are discussing a schedule of graduated tariffs increasing by about 2% to 5% a month, stoking concerns of global economic headwinds.
1
MORE

Trump team studies gradual tariff hikes under emergency powers

Valerie Plesch/Bloomberg

Trump team studies gradual tariff hikes under emergency powers

Members of President-elect Donald Trump’s incoming economic team are discussing slowly ramping up tariffs month by month, a gradual approach aimed at boosting negotiating leverage while helping avoid a spike in inflation, according to people familiar with the matter.

One idea involves a schedule of graduated tariffs increasing by about 2% to 5% a month, and would rely on executive authorities under the International Emergency Economic Powers Act, the people said.

The proposal is in its early stages and has not yet been presented to Trump, the people said — a sign that a monthly stepped approach is early in the deliberation process.

Advertisement

Advisers working on the plan include Scott Bessent, the nominee for Treasury secretary, Kevin Hassett, set to be director of the National Economic Council, and Stephen Miran, nominated to lead the Council of Economic Advisers, said the people, who requested anonymity to discuss internal deliberations.

Pete Hegseth, President-elect Donald Trump's nominee for defense secretary, testifies Tuesday on Capitol Hill in Washington during his confirmation hearing before the Senate Armed Services Committee.
Lisa Mascaro, Tara Copp and Matt Brown
Pete Hegseth confronts allegations of misconduct as senators grill Trump’s choice for Pentagon chief

Mr. Hassett did not reply to a request for comment, nor did a spokesman for Mr. Bessent. Mr. Miran declined to comment.

A spokesman for Trump’s transition team referred to the president-elect’s previous public comments and social-media posts about tariffs.

China’s yuan and currencies sensitive to its economy like the Australian and New Zealand dollars strengthened after the report. China has been ramping up support for the yuan as it remains close to a record low offshore. Still, investors expect Beijing to eventually allow weakness if Trump slaps higher tariffs on Chinese exports.

Advertisement

During the 2024 presidential campaign, Trump floated minimum tariffs of 10% to 20% on all imported goods, and 60% or higher on shipments from China.

Since he won the election in November, multiple reports have emerged on how aggressively he will implement tariffs, with Trump himself calling one report of a measured rollout false.

The uncertainty is leaving investors and companies guessing. The S&P 500 Index earlier Monday dropped below where it ended on Nov. 5, just before Trump was elected, before rebounding later in the day. Investors recently have been dumping Treasuries as fears grow that inflation will remain stubborn partly because of new tariffs, creating a headwind for stocks and the broader economy.

With just a week until Inauguration Day, economists can only guess as to how Trump’s trade wars will influence the economy. That’s left a complicated picture for the Federal Reserve, because Trump’s tariff threats are seen as a risk to the growth outlook while potentially stoking inflation if nations retaliate.

This photo, taken from Pennsylvania Senator Dave McCormick’s office X (formerly known as Twitter) feed show McCormick with PA’s other Senator, John Fetterman along with McCormick’s wife, Dina Powell McCormick and Fetterman’s wife, Gisele Barreto Fetterman.
Benjamin Kail
John Fetterman, Dave McCormick eye bipartisanship as ‘shotgun marriage’ U.S. Senate duo

International Monetary Fund Managing Director Kristalina Georgieva said that tariff threats are already driving up longer-term borrowing costs around the world.

Uncertainty about the incoming administration’s trade policies is adding to worldwide economic headwinds and “is actually expressed globally through higher long-term interest rates,” she told reporters in Washington on Friday. That’s happening even as short-term rates have gone down, a “very unusual” combination, she said.

First Published: January 14, 2025, 1:29 p.m.
Updated: January 15, 2025, 5:54 p.m.

RELATED
U.S. Steel workers listen to speakers at a rally in support of the company’s proposed $15 billion sale to Nippon Steel, outside of the Clairton Mill Works on Thursday, Dec. 12, 2024.
Evan Robinson-Johnson
Trump’s opposition to the sale of U.S. Steel remains a key focus
SHOW COMMENTS (40)  
Join the Conversation
Commenting policy | How to Report Abuse
If you would like your comment to be considered for a published letter to the editor, please send it to letters@post-gazette.com. Letters must be under 250 words and may be edited for length and clarity.
Partners
Advertisement
President-elect Donald Trump, center, and former first lady Melania Trump, center right, with family members, arrive at Section 60 of Arlington National Cemetery in Arlington, Va., on Jan. 19, 2025.
1
news
Trump’s Day 1 plans poised to impact Pennsylvania on energy, immigration
Pittsburgh Steelers coach Mike Tomlin stands on the fields during a time out while playing the Philadelphia Eagles at Lincoln Financial Field on Sunday, Dec. 15, 2024, in Philadelphia, Pa. The Philadelphia Eagles won 27-13.
2
sports
Joe Starkey: Steelers, Mike Tomlin missed a golden opportunity when the Chicago Bears called about a trade
Donte Jackson #26, Minkah Fitzpatrick #39, and Damontae Kazee #23 of the Pittsburgh Steelers warm up before a game against the Philadelphia Eagles at Lincoln Financial Field on December 15, 2024, in Philadelphia, Pennsylvania.
3
sports
Let's plan the Steelers' 2025 offseason: Cut, trade or keep
Sen. John Fetterman, D-Pa., speaks at a campaign rally for Democratic presidential nominee Vice President Kamala Harris at Erie Insurance Arena, in Erie, Pa., Oct. 14, 2024.
4
news
John Fetterman was elected to challenge convention. Now, he's challenging his fellow Democrats.
5
news
Two dead, two injured in late night crash on Ohio River Boulevard
Members of incoming President Donald Trump’s economic team are discussing a schedule of graduated tariffs increasing by about 2% to 5% a month, stoking concerns of global economic headwinds.  (Valerie Plesch/Bloomberg)
Valerie Plesch/Bloomberg
Advertisement
LATEST business
Advertisement
TOP
Email a Story