With less than a week before moving into the White House, the incoming Trump administration’s economic team is discussing various ways to roll out higher tariffs with maximum impact and minimal damage.

That’s apparent in our latest reporting from Washington, where the circle of President-elect Donald Trump’s advisers are studying a stepped approach to the tariff unveiling.

One idea is a month-by-month increase of 2% to 5%, Bloomberg News reported late Monday, rather than a one-time imposition of a number that’s several multiples higher than those figures. (Click here to read the full story from Bloomberg’s Jenny Leonard and Saleha Mohsin.) 

It’s all still preliminary. Trump himself hasn’t been presented with the gradualists’ proposal, and he’s publicly called “wrong” other reporting that suggest he’s paring back his threats of universal tariffs.

The dollar fell against almost every major currency and US Treasury yields dropped after we reported the development.

Related Reading:

• Rolling US Tariffs Would Be ‘Problematic’ for Fed, UBS Says
• Chinese Trade Surplus Soars to $1 Trillion Ahead of Trump Return
• Trump Trade Team Set for Wild Ride as Boss Floats Denmark Levies
• Trump’s Tariff Threats Set Off a Global Supply Chain ‘Freakout’
• A Roadmap Through Trump’s Tariff Realities and Trade War Drama

—Brendan Murray in London

Click here for more of Bloomberg.com’s most-read stories about trade, supply chains and shipping.

Charted Territory

Passing Germany | Tesla surpassed one of Germany’s most prized premium car brands last year, despite selling fewer vehicles than expected. Volkswagen’s Audi sold 1.67 million vehicles in 2024, down 12% from a year earlier. Its struggle with intensifying competition in Europe and China and weak demand for its electric models dropped the brand behind Elon Musk’s Tesla, which delivered 1.79 million vehicles last year.

Today’s Must Reads

• Mexico’s President Claudia Sheinbaum announced a plan to reduce the country’s imports from China in a bid to support local industry and align herself with the US and Canada as a trade partners.
• Nvidia chief Jensen Huang is embarking on a trip to China this week, visiting major cities at a time Beijing is investigating his company’s domestic presence and Washington is slapping new curbs on the sale of its AI chips abroad.
• Canadians should be prepared to face US tariffs once Trump assumes the presidency next week, with no exemptions for oil, Alberta Premier Danielle Smith warned after meeting the president-elect in Florida. Meanwhile, the leader of Ontario is pitching a “renewed strategic alliance” with the US on critical minerals.
• Greenland’s prime minister said he will seek a closer relationship with the US, highlighting the Arctic island’s push for independence amid renewed interest from Donald Trump.
• Cleveland-Cliffs is partnering with Nucor to weigh a potential joint bid for US Steel.
• The Biden administration has finalized a rule that effectively bans new personal smart cars with Chinese and Russian technology from American roads.
• National Security Advisor Jake Sullivan said China would face severe consequences if it launches a cyberattack that causes physical destruction in the US, and deterring such a move should be a priority for the incoming Trump administration.

On the Bloomberg Terminal

• The potential for US tariffs on China is raising concerns about an influx of cheap Chinese goods into Europe. Gauging the likely impact on Europe is far from straightforward, but the economic relationship between Brussels and Beijing will remain fraught, Bloomberg Economics says.
• A US Department of Homeland Security agency is stepping up its regulatory efforts to ensure companies aren’t misusing a trade law exemption that allows low value packages including those from Chinese e-commerce giants to enter the US duty free.
• Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
• Use the AHOY function to track global commodities trade flows.
• See DSET CHOKE for a dataset to monitor shipping chokepoints. 
• For freight dashboards, see BI RAIL, BI TRCK and BI SHIP and BI 3PLS
• Click HERE for automated stories about supply chains.
• On the Bloomberg Terminal, type NH FWV for FreightWaves content.
• See BNEF for BloombergNEF’s analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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