Investing.com — Members of President-elect Donald Trump’s economic team are reportedly discussing a plan to gradually increase tariffs, according to a Bloomberg report, citing people familiar with the matter. The approach aims to improve bargaining power and prevent a sharp rise in inflation. The proposal is in a preliminary stage and has not yet been presented to Trump.
The plan includes a tiered tariff schedule, which would increase by approximately 2% to 5% each month. The proposed tariff increases will be implemented under the executive powers of the International Emergency Economic Powers Act.
The team working on this plan includes Scott Bessent, a candidate for Treasury Secretary, Kevin Hassett, who is slated to be the director of the National Economic Council, and Stephen Mirano, a candidate to lead the Council of Economic Advisers. The sources asked to remain anonymous due to the internal nature of the discussions.
During the 2024 presidential campaign, Trump proposed minimum tariffs of 10% to 20% on all imported goods and 60% or more on shipments from China. Since his election victory in November, there have been more reports about how aggressively he plans to impose tariffs. However, Trump dismissed one report of a measured rollout as false.
It fell below levels since Nov. 5, just before Trump’s election, earlier Monday, but later rebounded. Investors have been selling off government bonds on fears that inflation will persist, in part because of new tariffs, creating a challenging environment for stocks and the broader economy.
With Inauguration Day just a week away, economists can only speculate about how Trump’s trade wars will affect the economy. The head of the International Monetary Fund, Kristalina Georgieva, said that threats of tariffs are already causing long-term borrowing costs to rise globally. Uncertainty over the new administration’s trade policy is adding to global economic pressures.
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