Gradual tariff proposal fits with previous Trump strategy
The Trump administration is considering a gradual approach to tariff increases rather than immediate large hikes. This strategy could involve monthly increases of 2% to 5%, aiming to foster negotiations and mitigate sharp price rises. Stephen Miran, Trump's candidate for the Council of Economic Advisors, previously highlighted that during Trump's first term, tariff increases were spaced out over 12 months, resulting in a minimal effective rate on Chinese imports. Trump's prior campaign promises included a 10% to 20% tariff on all imports and a substantial 60% on Chinese goods, emphasizing a significant shift in the global trade system. If similar policies are pursued again, investor confidence may rise, bolstering equity markets.
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