No watered-down tariff plans for Trump? US president-elect Donald Trump denied aWashington Post report published yesterday suggesting his blanket 10%-20% universal tariffs plan would be scaled back to target only critical imports tied to economic and national security. WP later updated its report to redact some of the original content, after being picked up by the Financial Times, Bloomberg, Reuters, the Guardian, among others.

Making the cut: The alleged scaled-back plan would see the incoming US administration focusing tariffs on goods including defense materials, pharma products, and energy materials including solar panels, and batteries, WaPo’s Jeff Stein reported.

Trump insists he’s not backing down from tariff plans: “The story in the WP, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back. That is wrong,” Trump said in a Truth Social post yesterday.

IN CONTEXT- Trump, set to take office on 20 January, has proposed a 60% tariff on Chinese goods, followed by an additional 10%, as well as a 10% tariff on imports from other countries during his 2024 Presidential campaign. Separate tariffs targeting Canadian and Mexican goods have also been suggested, leaving businesses scrambling to adapt to the potential cost increases and supply chain disruptions.

Tariffs might trigger a spike in US inflation, but Powell’s not sweating it — at least not yet: The effect of Trump’s potential tariffs on the economy is not yet a present situation to handle, US Fed Chair Jerome Powell said in December when the Federal Reserve cut rates by 25 bps for the third time last year.

IN OTHER US NEWS- More sanctions on Russian oil tankers coming: The Biden administration is planning to impose more sanctions on Russia and any of its tankers carrying Russian crude oil in response to its war on Ukraine, Reuters reports, citing unnamed sources with knowledge of the matter.

What we know: The sanctions will target people trading and tankers carrying Russian oil sold for more than the Western-imposed cap of USD 60 per barrel, the sources told Reuters. This will affect “two Russian companies, more than 100 tankers, oil traders, Russian ins. companies, etc.,” an unnamed official said. The Biden administration is trying to strengthen its attempts to support Ukraine before Donald Trump’s inauguration on 20 January, as Trump is expected to be less supportive.

REMEMBER- Russian state-owned tanker fleet operator Sovcomflot renamed at least four tankers listed under US sanctions in defiance last year. Sovcomflot was hit with US sanctions in February on the grounds it violated the G7-mandated price cap and other “deceptive activity.”

OTHER STORIES WORTH KNOWING THIS MORNING-

  • South Korea’s Muan Airport still closed as probe continues: South Korea has extended the closure of Muan International Airport until January 10 as investigations continue into the plane crash at the airport on December 29. The airport was initially scheduled to reopen on Tuesday. (Reuters)
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