Trump Denies Tariff Policy Report

By Andrea Shalal

WASHINGTON (Reuters) – U.S. President-elect Donald Trump denied a report that his aides were considering tariff plans focusing on critical imports, raising concerns among business leaders about future trade policies.

Trump reacted on his Truth Social platform following a Washington Post article citing anonymous sources that suggested a narrower tariff approach targeting specific essential sectors.

> “The story in the Washington Post, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back. That is wrong. The Washington Post knows it’s wrong. It’s just another example of Fake News,” he said.

According to the report, Trump aides were contemplating tariffs that would apply to every country but would exclusively target sectors linked to national or economic security, diverging from Trump’s past campaign promises.

Despite Trump’s denial, U.S. and European stocks rose sharply, and the U.S. dollar recovered part of its earlier losses.

Trump had promised tariffs of 10% on global imports and up to 60% on Chinese goods, which experts warn could disrupt trade, inflate costs, and provoke retaliatory measures against U.S. exports. He also mentioned a 25% tariff on imports from Canada and Mexico, which may lead to significantly higher gasoline prices.

While the aides indicated that plans are still evolving, uncertainty prevails. John Murphy, a senior VP at the U.S. Chamber of Commerce, expressed concern over instability created by tariff discussions.

While previous tariffs during Trump’s first term didn’t cause a rise in inflation, they adversely impacted foreign and domestic investment and business confidence. Murphy emphasized the need for clarity to mitigate potential economic costs of tariffs.

The report did not clarify which sectors would be affected, but preliminary talks aimed at sectors like defense supply chains, critical medical supplies, and energy production, including electric vehicle batteries and rare earth minerals.

Last month, a Trump transition document suggested imposing tariffs on all electric battery materials worldwide to enhance U.S. production, potentially negotiating exemptions with allies. The proposal aimed to target imports related to the EV supply chain under Section 232 tariffs for national security threats.

Recent mentions from the Defense Department have underscored America’s vulnerabilities due to China’s lead in mining and refining critical minerals essential for batteries and military applications.