President-elect Donald Trump has denied a report that his economic advisers are planning tariffs focused narrowly on industries key to national security. However, the Washington Post reported early Monday that the plan would still embody universal tariffs of up to 20% but target specific sectors like defense-related industries, energy, and critical medical supplies.
Despite Trump’s denial, the S&P 500 rose solidly, with steel and copper stocks gaining due to prospects for tariffs on these commodities. Automakers Ford and General Motors saw early gains before paring them off after Trump’s statement.
The reported plan aims to strike a balance between raising revenue through tariffs and avoiding inflationary pressures that could hinder Federal Reserve rate cuts. However, critics argue that a narrow approach would not generate significant revenue to fill the fiscal gap.
Trump has previously touted revenue from tariffs as a key component of his fiscal plans. A recent report suggested that his advisers are considering tariffs on strategic goods as an initial step, but Trump isn’t backing away from imposing broad-based tariffs in the long run.
The proposed plan includes critical medical supplies and alternative energy sectors, which could benefit industry players. Steel stocks led the S&P 500 gainers, with Nucor rising 4.6% and Steel Dynamics increasing 5.4%. Solar stocks also surged as Enphase Energy’s battery technology gained traction.
Source: https://www.investors.com/news/economy/trump-tariffs-strategic-industries-sp-500-nucor-enphase-ford-fcx-mp