US officials quietly drafting plan to cushion Trump tariff fallout – Bloomberg
US officials are exploring ways to mitigate the potentially harmful effects of the sweeping tariffs announced by President Donald Trump, Bloomberg reported on Tuesday, citing sources in Washington. The talks are reportedly being held without Trump’s knowledge and reflect internal unease over his shift in trade policy.
Last week, Trump imposed a minimum 10% tariff on all imports and introduced “reciprocal” duties ranging from 11% to 50% on dozens of countries he accused of maintaining unfair trade imbalances. The new measures included an additional 34% duty on imports from China, on top of an existing 20% rate implemented earlier, and a 20% levy on goods from the EU, among others.
On Monday, Trump threatened to slap a further 50% tariff on all Chinese imports unless Beijing reverses the 34% hike it announced in response to the new US levies. A number of other countries have slammed Trump’s tariffs over the past few days and vowed to implement countermeasures.
According to Bloomberg, Trump administration officials fear that retaliatory tariffs will damage US exports, hurting American firms trying to sell goods abroad. Sources said discussions are underway about a potential exporter tax credit, which would serve as a subsidy for US firms selling products and services overseas. The credit, which would require congressional approval, could be issued at the end of the year.
Officials are also reportedly weighing a credit for importers to shield US companies from rising costs when sourcing goods from countries affected by Trump’s tariffs. These measures would aim to soften the economic blow to both exporters and importers once the tariffs take full effect.
Sources told Bloomberg that neither Trump nor Treasury Secretary Scott Bessent has been formally briefed on the deliberations, and the proposals have yet to receive full backing from the administration’s economic team.
A Treasury spokesperson confirmed the discussions but stressed that any talk of “specific provisions” are “still early.” The spokesperson added that any tax proposals or initiatives Bessent may pursue would be aligned with “his full support for President Trump’s America First Economic Agenda.” The White House declined to comment on the report.
Trump’s tariffs and the threat of retaliation have raised fears of a global trade war. Several investment banks have raised their recession risk forecasts for both the US and global economies over the past week. Stock markets have been rattled, with major indexes in the US, Europe, and Asia all trading lower the past three days.
Despite the criticism, Trump has defended the tariffs as essential to correcting trade imbalances. On Monday, he claimed on social media that the measures were working and delivering significant economic benefits to the US.
