Trump "talks one way and acts another"? Reports say the White House is once again considering "comprehensive high tariffs," and gold hits a new high

Risk aversion drives gold prices to new highs, with media reports indicating that the Trump administration is considering implementing a broader and higher tariff plan.

On Monday morning in Asia, as the Trump administration is about to launch a new round of tariff policies, gold opened higher, with the price per ounce breaking $3,093, surpassing the historical high set last Friday.

Gold has risen about 17% this year, setting at least 15 historical highs. Although the market has lowered expectations for the Federal Reserve to cut interest rates twice by 25 basis points this year, the central bank's purchases and rising risk aversion due to geopolitical and macroeconomic uncertainties continue to support gold prices.

Despite Trump downplaying the strength of the so-called "reciprocal tariff" plan on April 2 multiple times, recent media reports indicate that Trump has shifted to a tougher stance, urging his team to design a broader and higher rate plan. One option is a global tariff of up to 20%, covering almost all U.S. trading partners.

Trump's team considers implementing a broader and higher tariff plan

According to The Wall Street Journal, the Trump administration is working diligently to finalize the details of a new round of tariff policies, aiming to complete the plan by the self-imposed deadline of April 2. Trump previously promised to reshape the U.S. economic landscape through a series of taxation measures, and the team is currently weighing various options.

Last week, Trump downplayed the strength of the so-called "reciprocal tariff" plan on April 2, stating it would be "more moderate" than originally envisioned, and even considered completely exempting certain countries from tariffs. However, media reports citing informed sources reveal that Trump has recently shifted to a tougher stance, urging his team to design a broader and higher rate plan.

Reports indicate that a core point of contention in tariff design is whether to implement "differentiated rates" for different trading partners or revert to the "one-size-fits-all" comprehensive tariffs proposed during the campaign, which would almost affect all countries trading with the U.S.

The specific implementation method has not yet been finalized. Reports indicate that Trump's advisory team has recently considered a global tariff of up to 20%, covering almost all U.S. trading partners. This plan aligns with the policy Trump promoted for months during his campaign, although he later publicly shifted to support the so-called "reciprocal tariffs," meaning "we charge them as much as they charge us."

A government official stated that the "reciprocal tariff" plan is still under consideration and revealed that the president prefers to impose tariffs on all countries with a trade deficit with the U.S., hoping each country has a "clear and simple number." The official emphasized that regardless of the final plan, the president demands that the policy must be "big and simple."

This means that the final action may be broader than initially envisioned. Treasury Secretary Yellen previously mentioned in public that priority would be given to imposing tariffs on the U.S.'s largest trading partners (which account for about 15% of global countries) In addition to discussions on the tariff framework, the Trump team is also considering implementing special taxes targeting specific industries, which may cover critical minerals and products containing these minerals. It is uncertain whether these special tariffs will be announced on April 2, but they are expected to be included in the trade policy assessment report that the U.S. Trade Representative plans to submit to Trump on Tuesday.

Trump: "I don't care if car prices go up"

As a new round of tariffs approaches, Trump publicly downplayed any concerns about price increases. On Saturday, he told NBC News that he "doesn't care at all" whether foreign automakers raise prices for American consumers due to the new tariffs.

"I don't care at all because if foreign car prices go up, people will buy American cars," Trump said. "I want them to raise prices because if they do, people will buy American-made cars. We have a lot of capacity."

Trump also denied in the interview that he had instructed CEOs of American automakers during a conference call in early March not to raise prices. Previously, The Wall Street Journal reported that Trump had warned executives that if they raised prices, the White House would not approve, which shocked some executives who were concerned about being punished for raising prices.

Risk Warning and Disclaimer

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