Members of President-elect Donald Trump's incoming economic team are reportedly considering a strategy to implement gradual tariff hikes of 2% to 5% per month. This approach aims to enhance negotiating leverage with trade partners while mitigating inflation risks. The proposal, which could utilize executive authorities under the International Emergency Economic Powers Act (IEEPA), is still in the early stages of discussion among key advisers, including Treasury Secretary nominee Bessent, Haslett, and Miran. While the plan is being explored, Trump has not yet reviewed or approved it. The news has led to a dip in the U.S. dollar and a rally in U.S. and European equity futures, with Chinese stocks also showing strong performance.