Trump: Scripts for withdrawal to the level of international trade tariffs – Rally for the euro

The councillors of the elected president are considering a plan that will apply to all countries, but will be limited to specific critical imports, Washington Post said, leading to a fall against the euro and other currencies the dollar. As American newspaper sources point out, if implemented, the plan will mark a significant reduction in global tariffs of 10% to 20% proposed by Trump during his campaign, a move that economists expect to lead to an increase in consumer prices and distort world trade standards. CORVERSE The US dollar retreated against most major currencies on Monday (06.01.2025) after the report, with Bloomberg Dollar Spot Index retreating by 0.9%, scoring the largest drop since November, while the euro scored a rally of over 1% against the dollar. Which areas or goods will be a target was not directly clear, but will likely focus on those considered key to economy and national security and discussions have focused on those Trump intends to bring back to the US, according to the report. Trump’s focus may include the supply chain of the defence industry – through tariffs on steel, iron, aluminium and copper – as well as critical medical items such as syringes, needles, vials and pharmaceuticals. Trump could also target energy materials, including batteries, mineral rare earths and solar panels, Post said. It is unclear whether the approach to universal imposition of duties will apply to other policies that Trump has proposed. These include imposing duties on all goods from China up to 60%, as well as 25% on imports from Mexico and Canada, unless they do more to halt the flow of immigrants and fentanyl to the US. With about two weeks until Trump’s inauguration, threats around his tariff plans have already caused anxiety in the global trading system, as well as uncertainty about the course of inflation and interest rates. Bloomberg Economics’ main case last year provided for three waves of tariff increase, starting in the summer of 2025, with contributions to China finally tripled by the end of 2026 and a smaller increase in the rest of the world – focusing on intermediate and capital goods that do not directly affect consumer prices.