Official announcements from the U.S. government or statements from the White House

Trump's Team Studies 2%-5% Monthly Tariff Hikes Under IEEPA, Sparks Asia Stock Rally

Jan 14, 2025, 02:49 AM

Members of Donald Trump's incoming economic team are discussing a strategy to gradually increase tariffs month by month, aiming to enhance negotiating leverage with trading partners while mitigating the risk of a sudden spike in inflation. The proposed plan involves raising tariffs by 2% to 5% each month, utilizing executive powers under the International Emergency Economic Powers Act (IEEPA). This approach is still in its early stages and has not yet been presented to Trump. Key figures involved in these discussions include Scott Bessent, nominated for Treasury Secretary, Kevin Hassett, set to be the director of the National Economic Council, and Stephen Miran, nominated to lead the Council of Economic Advisers. The news of this potential policy shift led to a weakening of the U.S. dollar against major currencies and a rally in global stock markets, particularly in Asia, with Chinese stocks leading the gains.