Donald Trump ‘considering paring back tariff plans’

Donald Trump’s aides are reportedly looking at universal import duties, but only on critical imports, in a key shift from the President-elect’s 2024 campaign.

Donald Trump with Italy's Prime Minister Giorgia Meloni at his Mar-A-Lago Club. Picture: AFP.

Donald Trump is reportedly considering paring back his tariff plans to cover only critical imports, in a major shift from his 2024 presidential campaign.

The new plans considered by the President-elect and his aides would still be applied to every country, but they would be applied only to sectors deemed critical to America’s national or economic security, The Washington Post reports.

Last month, Mr Trump announced that he would impose 25 per cent tariffs on Canada and Mexico, as well as “universal” tariffs from 10 to 20 per cent on everything imported into the US from other countries.

If imposed, these and other proposed tariffs are likely to lead to retaliatory tariffs on the US, as occurred in Mr Trump’s first term.

Leading economists have warned that levying tariffs would represent a significant risk for the global economy with no benefit to the US, while consumers will end up paying more for important goods.

There is already evidence that the mere threat of protectionism is distorting global trade, as US firms rush to import goods before Mr Trump gets into office – exacerbating a surge in shipping costs.

Donald Trump’s proposed tariffs on Canada led to the forced resignation of Canadian Prime Minister Justin Trudeau. Picture: Getty Images.

The proposed tariffs on Canada have already claimed their first casualty, after Prime Minister Justin Trudeau announced his resignation on Tuesday. Mr Trudeau had been struggling in the polls but it was the resignation of his finance minister, Chrystia Freeland, over his approach to Mr Trump’s proposed tariffs, that led to a political crisis which he could not survive.

Exactly which imports or industries would face tariffs under Mr Trump’s revised plan wasn’t clear, the Post reports. Citing sources close to Mr Trump’s team, the Post reports that preliminary discussions have largely focused on several key sectors that his team wants to bring back to the United States, including the defence industrial supply chain (through tariffs on steel, iron, aluminium and copper), critical medical supplies such as pharmaceutical supplies and syringes, and energy production – for example tariffs on batteries, rare earth minerals and solar panels.

Mr Trump has denied the claims, writing on social media: “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.”

Last week, he wrote on his social media platform Truth Social: “The Tariffs, and Tariffs alone, created this vast wealth for our Country … Tariffs will pay off our debt and, MAKE AMERICA WEALTHY AGAIN!”