Trump`s tariff is working, and the tariff dollars have started rolling into government coffers, according to the Treasury Department. The Department of Homeland Security deposited $15 billion in «customs and excise taxes,» the category that includes tariffs in April through the 24th og the month.
This is up from $9.6 billion in all of March.
The tax collection data shows that April was the month Trump`s campaign of tariffs started to make a real financial impact. Trump`s April 2 «Liberation Day» tariffs against all U.S. trading partners ranged from 10% for many countries to 145% for Chinese products.
Trump`s stated goals for his import taxes include raising revenue to fund the government, restoring U.S. manufacturing by protecting it from foreign competition, and pressuring foreign governments to make trade deals favorable to the U.S. Economists have warned the tariffs are likely to drive up the cost of living, and risk plunging the economy into a recession.
According to Peterson Institute, President Donald J. Trump`s new tariffs could generate trillions of dollars in new federal government revenue over a decade, but the net gain would be reduced by the measures` damaging effects on the U.S economy and the other economies likely retaliation.
Under the tariff rate, the U.S would see lower GDP, investment, employment, and real wages over the following decade than otherwise, i.e., than without the tariff increase, and higher inflation over the initial two years.
The U.S sectors hit hardest would be agriculture, mining, and manufacturing because of their relatively high reliance on foreign demand for their exports. The harm would be amplified by retaliation from trading partners.
Trump said in an interview with Fox News today that tariff revenue will eliminate income taxes for people making less than $ 200 K. Trump wants to cut all income taxes, but will start with those who earn less than 200 K. This is good news for the middle class. Lawmakers are now working to pass the final budget bill.
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Ket Garden
Shiny bull 