In a short time, Donald Trump will take office as the new president. One of the main issues is how Trump's threat of import tariffs on goods, not only from China but also from EU countries, will play out.
Critics at home have, however, pointed out that a negative consequence would also be that inflation in the US could take off again – something that would hit American households.
A possible solution being discussed within Trump's staff, according to Bloomberg, is a "scheme" where the tariff levels are instead raised gradually. This would be based on the International Emergency Economic Powers Act, a law that gives the sitting president the right to regulate international trade. This would be triggered by a "state of emergency" due to a threat to the US.
The proposal is, however, still in an early stage and has not yet been presented to Trump himself, according to Bloomberg. On the currency market, however, the reports have had an immediate effect, and the dollar initially weakened against other currencies.
Already during his previous presidential campaign, Trump used trade tariffs as a way to strengthen the US economy, primarily targeting competitor China. Ahead of his taking office again, there has been widespread concern from both national and international quarters about what is to come.
