US representatives secretly draft scheme to cushion Trump tariff fallout
(MENAFN) US officials are reportedly devising a strategy to mitigate the potential negative impact of the tariffs imposed by President Donald Trump, according to a Bloomberg report on Tuesday. These discussions are happening without Trump’s knowledge, signaling concerns within his administration over the sweeping changes in trade policy.
Last week, Trump imposed a minimum 10% tariff on all imports and reciprocal duties ranging from 11% to 50% on countries he claims have unfair trade practices. This includes a 34% tariff on Chinese imports, on top of a previously implemented 20%, and a 20% tariff on goods from the EU. On Monday, Trump escalated tensions by threatening an additional 50% tariff on Chinese goods unless Beijing reverses its own retaliatory tariff increases.
As other nations voice opposition and pledge countermeasures, the Trump administration is reportedly worried that retaliatory tariffs could harm US exports. Internal discussions are considering introducing an exporter tax credit to assist US companies selling overseas. This proposal, which would require congressional approval, could be rolled out by the end of the year.
Officials are also exploring potential credits for importers to offset the higher costs associated with Trump’s tariffs. These measures aim to soften the economic impact on both importers and exporters once the tariffs are fully enforced.
However, sources suggest that neither Trump nor Treasury Secretary Scott Bessent has been fully briefed on these plans, and they have yet to receive full support from the economic team. A Treasury spokesperson confirmed the ongoing talks but stressed that they were still in the early stages, and any proposals would align with Trump’s “America First” economic agenda. The White House declined to comment on the matter.
Amid the rising tension, fears of a global trade war are growing. Several investment banks have raised recession risk predictions for both the US and the global economy, while stock markets in the US, Europe, and Asia have been negatively affected by the ongoing tariff battle. Despite the criticism, Trump has defended the tariffs, claiming they are benefiting the US economy.
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