President-elect Donald Trump's top economic advisers reportedly are mulling a slow ramp-up in tariffs, a move to boost negotiating leverage and avoiding a sudden spike in inflation.
The Monday night Bloomberg report appeared to give stock futures a modest lift overnight. Tesla, Nvidia and Palantir Technologies rose 1%-2% in premarket trade.
One proposal being discussed would involving hiking tariffs by 2%-5% a month, using emergency powers, Bloomberg reported, citing sources.
The advisers mulling the plan include Treasury Secretary nominee Scott Bessent, Kevin Hassett, pegged to be director of the National Economic Council, and Stephen Miran, tapped to head the Council of Economic Advisers.
Wall Street saw Bessent, a hedge fund manager, as someone who might encourage a gradual increase in tariffs to avoid economic disruption.
The plan has not been shared with Trump yet, sources said. That's evidence that the gradual tariff hike idea is still in early stages.
The Trump Economy And Fed Rate Outlook
Trump Threatened Shock And Awe
On Nov. 25, Trump threatened massive tariff hikes on China, Canada and Mexico on his first day in office. That included a 10% additional tariff on Chinese goods and 25% tariffs on products coming from Canada and Mexico.
But it wasn't clear if Trump was serious or made the threat as a negotiating tactic.
During the presidential campaign, Trump proposed a 10%-20% tariff hike on all imported goods, with a 60% tariff jump on Chinese items. In early January, Trump denied a report that he would limit tariff hikes to specific, critical goods.
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