President-elect Donald Trump is contemplating a new tariff strategy that will impose tariffs on select goods and services, as reported by the Washington Post. This approach is a departure from his previous ideas of universal tariffs of 10% or 20%, particularly targeting nations like China and Mexico, which could exacerbate inflation concerns. While Trump’s past tariffs during his first term did not significantly elevate prices broadly and remained intact under President Biden, current economic conditions have economists worried that aggressive tariffs could have a more pronounced negative impact. Specific sectors under consideration for the new tariffs include various industrial metals, medical supplies, and energy, although these discussions are still preliminary. The context for these considerations is a substantial monthly trade deficit of $74 billion that has widened since the COVID-19 pandemic. Overall, while Trump’s revised tariff strategy may not be as sweeping as before, it still poses significant implications for global trade dynamics.
