Trump's Tariff Plans: A Ripple in Global Trade

Trump's aides are exploring tariffs on critical imports only, focusing on national security sectors. These plans aim to boost U.S. industries like defense and energy by using tariffs strategically, stepping back from initial campaign promises. This move has spurred optimism in European markets.

In a strategic shift, President-elect Donald Trump's team is considering imposing tariffs on critical imports, diverging from his earlier campaign promises. According to insiders, these discussions focus on safeguarding national and economic security by targeting specific sectors.

The potential move has sparked a notable rally in European stocks and currencies, as markets responded positively to the prospect of less aggressive tariffs from the incoming administration. Trump's original vow included a blanket 10% tariff on global imports and a 60% duty on Chinese goods, measures now in question as his team refines its strategy.

Sectors under consideration include defense, critical medical supplies, and energy production. A major focus is enhancing U.S. production by leveraging tariffs, especially on components like EV batteries and rare earth minerals. The strategy is part of a broader effort to address vulnerabilities posed by foreign dominance in these critical areas.

(With inputs from agencies.)