Important points
- President Donald Trump has said he could lower tariffs on some items and raise them on others.
- As inventories run low, companies are warning of potential price increases due to existing tariffs.
President Donald Trump said in a recent interview with Politico that he may adjust tariff policy, including possible cuts to certain consumer goods. But President Trump warned that tariffs on other products could be increased.
President Trump used coffee as an example, saying he has already implemented a small tariff carve-out. He argued that tariffs are bringing auto companies back to the United States.
He also said the country had lost its semiconductor market under previous presidents and detailed how the U.S. made $40 billion and asked Intel for a 10% stake in the company in exchange for government support. He added that $18 trillion is “coming into our country” because of tariffs.
The potential policy shift comes as companies have indicated they expect tariff-related price increases as inventories are depleted.
The Trump administration has already made trade adjustments, lowering tariffs on some Chinese products as part of a tentative agreement to restart trade with rare earths and improve relations. The U.S. government also eased tariffs on imports from countries such as Canada and Mexico to balance trade and address economic fallout.
