Thu, 31 Jul 2025

Thu, 31 Jul 2025 How much cash is the US raising from tariffs?

The US is seeing increased tariffs income, but there are signs of some countries diverting trade elsewhere.

* The US has imposed "reciprocal" tariffs on dozens of countries, but some have been paused or replaced with lower tariff agreements.
* Despite this, the overall average US tariff rate is at its highest in almost a century, and the Trump administration's tariff revenues have increased significantly.
* The Congressional Budget Office (CBO) estimates that the tariffs will reduce cumulative US government borrowing by $2.5 trillion over the next 10 years, but also shrink the size of the US economy relative to how it would perform without them.
* The tariffs have not achieved their goal of reducing the US trade deficit, as imports have increased while exports have only seen a modest increase.
* Many economists believe that the trade deficit is primarily driven by structural imbalances within the US economy rather than unfair trade practices.
* China's exports to the US have decreased significantly since the imposition of tariffs, but Chinese firms have been able to find customers in other countries.
* Some countries have responded to Trump's trade war by seeking to deepen trade ties with other countries.
* The tariffs have also led to increased prices for consumers, as imported goods become more expensive.
* Economists warn that the tariffs will ultimately push up US prices and reduce economic growth.
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