Two weeks before President-elect Donald Trump’s inauguration, his team is considering significant shifts to his campaign promise of imposing sweeping tariffs on all imports. Instead of the across-the-board tariffs Trump championed during his 2024 campaign, aides are discussing narrower measures targeting critical sectors of the economy, according to sources familiar with the matter.
The original proposal of “universal tariffs,” which called for import taxes as high as 20%, has faced criticism for its potential to raise prices on everyday goods like food and electronics, causing political and economic disruptions. Now, Trump’s advisers are leaning toward imposing tariffs only on select industries deemed vital to national and economic security.
Focus on Critical Industries
Discussions have centered on sectors such as:
- Defense: Steel, aluminum, iron, and copper to bolster the military supply chain.
- Healthcare: Medical supplies like syringes, needles, and pharmaceutical components.
- Energy: Rare earth minerals, batteries, and solar panels to strengthen energy independence.
By narrowing the scope, the Trump team aims to mitigate the economic shock while still incentivizing companies to bring manufacturing back to the United States. One source familiar with the deliberations described the approach as “a sector-based universal tariff” that would be easier to implement initially.
Inflation and Political Calculations
The shift in strategy reflects mounting concerns about inflation, which remains stubbornly high despite Federal Reserve measures. Broad tariffs could exacerbate price increases, impacting both consumers and businesses. Politically, the revised plan seeks to avoid backlash from Congressional Republicans and voters wary of rising costs.
Global Trade Implications
If implemented, the tariffs would mark a major challenge to the global trade system, potentially inviting retaliation from US trading partners. The plan could also interact with other Trump proposals, such as a 25% tariff on goods from Mexico and Canada and an additional 10% on Chinese imports—measures tied to reducing migration and drug trafficking. Whether these additional tariffs will proceed alongside the sectoral focus remains unclear.
High-Stakes Economic Gamble
While the targeted approach is seen as a compromise, it still represents one of the most aggressive trade policies in decades. Trump’s advisers argue that reshoring manufacturing jobs is critical to America’s economic future, even if it means short-term disruptions.
The internal planning is being led by key figures in the incoming administration, including Vince Haley, expected to head the White House Domestic Policy Council, and Scott Bessent and Howard Lutnick, Trump’s picks for treasury secretary and commerce secretary, respectively.
“The thought is, if you’re going to do universal tariffs, why not at least start with these targeted measures?” said one source. “It still gives CEOs a massive incentive to start making their products here.”
As planning continues, no final decisions have been made. But the emerging strategy signals that Trump’s trade policies could reshape the US economy and global commerce for years to come.
