U.S. stocks looked set to rise on Tuesday as the market chose to focus on the positives from a report saying Donald Trump may take a more restrained approach to raising tariffs.
The President-elect’s transition team is discussing hiking levies on foreign imports by between 2% and 5% a month in a bid to strengthen their hand in negotiations and lower the odds of a flare-up in inflation, Bloomberg reported late Monday, citing people familiar with the matter.
“A lasting rise in tariffs at such a pace would be hardly trivial, so it is not obvious that this scenario would be all that sanguine,” Deutsche Bank analyst Jim Reid wrote. “However, the market has latched onto the gradual and incremental element rather than the potential endgame.”
