Trump’s Tariffs Not “Saving the U.S.” but Costing American Consumers

President Trump is mistaken in claiming that his increased tariffs are “saving our country” through the revenue they generate, according to Goldin and Woodward’s AP fact check.

The costs US importers pay upfront are typically passed on to consumers in the form of higher prices.

Although Trump imposed significant tariffs on imports, the revenue is not large enough to substantially reduce annual budget deficits.

Nor have the tariffs corresponded with meaningful manufacturing job growth.

Before the Supreme Court struck down the tariffs imposed under an emergency declaration, the Congressional Budget Office (CBO) estimated they would raise $3 trillion over 10 years — about $300 billion annually.

That amount would not cover the cost of Trump’s $4.7 trillion in tax cuts, including additional interest-related reductions that favored corporations and higher-income households.

It also falls short of offsetting last year’s $1.78 trillion federal budget deficit.

Economists widely agree that US importers — not foreign exporters — pay tariffs upfront. Those costs are typically passed on to consumers in the form of higher prices.

Many US think tanks estimate that roughly 90% of tariff costs are ultimately borne by American households, contradicting Trump’s assertion that foreign countries pay the duties.