Washington
CNN
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Just days after win a comeback pick, President-elect Donald Trump is evaluating how his campaign promises can be translated into policy. As for rolling out the broad-based tariffs he promised campaign trackthe strategy has not yet been formed, multiple sources familiar with the matter told CNN.

“The vision is there, but the game plan is not,” said a source close to the discussions, noting that major decisions about how to pursue those strategies — and the personnel to execute them — have yet to be made. Economic experts say the cost of the tariffs expected to be passed on to consumers rather than borne by firms that produce goods broadly.

As a candidate, Trump promised to put 60% tariffs on all goods coming in from China and 10% tariffs on goods imported from all other countries. While aides say those promises weren’t campaign bluster, questions remain how to pursue themthrough which legal authorities and when.

Among those advising Trump on economic matters before making critical appointments, a clear strategy has emerged: Link the increased Chinese tariffs to tax reform negotiations expected to peak in 2025.

“The way President Trump views tariffs is not in isolation. They are a fundamental and central part of his broader economic strategy, which also includes tax cuts, deregulation, energy diversity,” said Kelly Ann Shaw, a former Trump official who is now a partner at law firm Hogan Lovells.

Much of the landmark legislation from Trump’s first term — the 2017 Tax Cuts and Jobs Act — is set to expire at the end of next year, with congressional Republicans already working on how to extend or make it permanent. Trump’s economic advisers — and the president himself — see the upcoming tariff revenue as a way to offset that cost.

“Lower taxes and pay down debt,” Trump said when asked by his former economic adviser Larry Kudlow what he would do with the proceeds from new tariffs.

Extending provisions of the Tax Cuts and Jobs Act that are set to expire — a doubling of the standard deduction, an increased child tax credit and an estate tax exemption, among others — would forgo $5.3 trillion in state revenue, according to the Center for a Responsible Budget. Ending taxes on tips, overtime pay and Social Security benefits would cost trillions more.

Trump’s proposed tariffs would raise $2.7 trillion, the group estimates.

But the exact sequence of which of Trump’s proposed tariffs are moved first — and under which laws, a detail that determines how long it takes for the policy to take effect — is not yet known. Advisers have suggested the new administration could use authorities reserved for emergencies or national security, but they would likely face legal challenges from corporate America.

And if they sought tariffs as a direct offset to the longer tax cuts, such a move would have to be written into law, with congressional approval.

“Nothing can stop (Trump) from saying one thing pays for the other,” a senior adviser said. “But it’s not a ‘pay-for’ unless it’s in the law.”

The Trump transition did not respond to a request for comment.

While the notices may suggest that costs are offset, businesses and consumers are still expected to feel the impact of any new charges.

“Companies will need to develop a tariff strategy and they will need to decide whether to absorb the cost, pass it on to consumers or remove the Chinese content in their goods,” said Jake Colvin, president of the National Foreign Trade Council, which represents importers from a variety of industries.

Trump has proposed cutting the corporate tax rate to 15% for companies that move their production back to the US, thereby exempting them from his tariffs.

“The reality is you just can’t do everything here,” Colvin told CNN.

The campaign has commissioned its own studies on the economic impact of those tariffs, with fees not far below the levels Trump has proposed, according to people familiar with the effort.

Some more targeted tariffs could be implemented sooner, these sources said. Trump has weighed a tariff on electric cars made abroad, and has railed about how cheap Chinese electric vehicles are compared to American electric cars. And Trump’s advisers have expressed frustration with countries — like Canada and the European Union, for example — slapping American tech companies with new taxes on their foreign profits, and retaliation could be coming soon.

“It’s in direct response to something the EU has already done,” one source said. “The EU is robbing the US tax base. There is a general perception that the (broader) tariffs will come later.”

While the proximity of Robert Lighthizer, a longtime trade lawyer who deftly navigated Trump’s impulses during his first term, has signaled a more academic approach to this policy, Elon Musk’s proximity to Trump’s inner circle could counteract that.

Musk’s position as operator of both a technology company in X and an electric car company in Tesla, which makes cars both in the US and in China, is seen as a complicating factor in the new president’s ability to navigate the issues.

But one maxim is certain: Trump will threaten a consequence until it reaches its goal.

“He’s the ‘customs man,’ but he’s also a dealmaker,” said a former Trump official. “If he can use the tariffs as a means to an end, he will.”

CNN’s Katie Lobosco contributed to this report.