Impact of President Trump's Tariffs on Federal Revenue

SOURCE www.factcheck.org
White House trade adviser Peter Navarro claimed that tariffs announced by President Trump could raise between roughly $2 trillion and more than $4 trillion in federal revenue over a 10-year period. However, multiple economic analyses project that the tariffs will reduce the after-tax income of households by potentially thousands of dollars a year, on average. Navarro's revenue projection is considered exaggerated by independent analyses.

Key Points

  • Tariffs announced by President Trump could raise between roughly $2 trillion and more than $4 trillion in federal revenue over a 10-year period
  • Multiple economic analyses project that the tariffs will reduce the after-tax income of households by potentially thousands of dollars a year, on average
  • Navarro's revenue projection is considered exaggerated by independent analyses

Pros

  • Claimed potential to raise significant federal revenue

Cons

  • Likely to reduce after-tax income of households
  • Exaggerated revenue projections