President-elect Donald Trump has publicly rejected a report from The Guardian and Reuters, stating that his aides were considering a shift in tariff policy to target only critical imports. Trump took to Truth Social to assert, "The story in the Washington Post, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back. That is wrong," calling the report an example of “Fake News.”

The Washington Post had earlier reported that Trump’s team was exploring tariffs that would apply universally but focus on specific sectors deemed essential to national security. Such a change would starkly contrast Trump's promises made during the 2024 presidential campaign, which included a sweeping 10% tariff on global imports and a dramatic 60% on Chinese goods. Trade experts have cautioned that these tariffs could disrupt trade flows and provoke counteractions against U.S. exports, raising the costs of goods for American consumers.

Following the Washington Post's report, European markets rallied, indicating a reaction to the potential tariff policy shifts. Trump aims to prioritize certain key sectors in his tariff strategy, with discussions reportedly centering around the defense industrial supply chain, which includes steel, iron, aluminum, and critical medical supplies like syringes and pharmaceutical materials. There has also been talk of targeting energy production materials, including batteries and rare earth minerals.

Moreover, a transition team document previously reported by Reuters recommended imposing tariffs on all electric battery materials internationally in an effort to enhance U.S. production capabilities, proposing negotiations for exemptions with allies.

As Trump prepares to officially take office on January 20, the uncertainty surrounding his trade strategies leaves the markets and many industries closely watching any developments regarding his administration's approach to international trade policy.