Trump, tariff and Hit Multiple
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The Congressional Budget Office reported federal revenues are starting to surge, as they are up about 18% since June.
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MiBolsilloColombia on MSNTrump's Tariffs to Generate $300 Billion for Federal Government: Is It Worth the Inflation Risk?The Trump administration's tariffs promise significant federal revenue, but rising inflation raises concerns. As the Federal Reserve grapples with economic pressures, the question remains: do the fiscal benefits outweigh the economic costs for American consumers?
Tariff income won’t come close to balancing the federal fisc.
Eliminating $2 trillion annual deficit would require increasing revenue, decreasing spending, or a combination of the two.
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Tariffs—taxes placed on imported goods—are one of the oldest tools in the United States' economic policy arsenal, dating back to the 18th century. Recently they've returned to the spotlight in a big way.
The higher rates suggest Trump may raise tariffs on certain countries beyond the levels outlined in his April 2 “Liberation Day” announcement, which set a new baseline tariff of 10%—about three times the previous rate—and imposed steep duties on nations with significant trade imbalances with the U.S.
House Speaker Mike Johnson touted an alleged federal budget surplus for June 2025, the first since 2017, and said with President Trump's tariff policies and the "Big, Beautiful Bill" that will become more common.
Economists broadly expect the tariffs to add 1 to 1.5 percentage points to the inflation rate by the end of the year, which could leave it between 3.5% and 4%. Inflation peaked at 9% in 2022 and got as low as 2.3% in April of this year — almost at the Federal Reserve's target of 2% or so.
Why It Matters: This news comes on the heels of the U.S. Customs and Border Protection (CBP) collecting over $106 billion in customs revenue since Trump’s inauguration, with a significant portion attributed to the administration’s tariffs.