President Trump said his goal in imposing a tariff is to force companies to reproduce to the United States. If the manufacturers make their goods in America, they will not have to pay customs duties.
However, the latest revenue forecast provided by his administration calls for questioning what Mr. Trump wants to achieve through the definitions imposed on both allies and opponents.
Peter Navarro, the chief commercial advisor to Mr. Trump, told Fox News on Sunday that the comprehensive definitions that the president imposed would collect about $ 6 trillion over the next decade, as these revenues are moving towards financing the “largest tax reduction in American history of the middle class”.
While he insisted that Americans will not bear the cost, these estimates indicate that the burden of definitions can decrease severely on consumers, rather than encouraging companies to restore supply chains.
Trade experts They argued The use of definitions to increase revenues directly contradicts the goal of using definitions to return factories to the United States. In order for the government to obtain a lot of revenues, Americans will need to continue to buy large sums of imported products.
Mr. Navarro said the administration will also reduce the costs of Americans by lowering gas prices. Trump officials said it will be completed by drilling for more oil in the United States.
Mr. Navarro said: “The customs tariff are tax cuts, and the definitions are jobs, and definitions are national security.” “The definitions are great for America.”
Mr. Trump is expected to offer a global tariff for other countries this week, She has repeatedly talked about the replacement of taxes with tariffs. But the United States government raises about $ 2 trillion of individual income and companies taxes. In 2024, the United States imported $ 4 trillion of products, which means that the customs tariff should be very high to replace tax revenues.
Economists’ accounts at the Peterson International Economy Institute indicated that the customs tariff revenues It can be peak At about 780 billion dollars annually with a 50 percent tariff on all imports. After that, the revenue amount will shrink. This is because when the definitions reach a certain level, consumers tend to stop buying imported products, which means that the revenues they generate decrease.
The YALE Budget Laboratory estimated that the car tariff, which is scheduled to come into effect on Thursday, collect 600 billion dollars to 650 billion dollars between 2026 and 2035. But these prices will decrease strongly on consumers. The prices of American vehicles will increase by 13.5 percent on average, equivalent to an additional $ 6400 for a new 2024 car. Each American family will pay between $ 500 to $ 600 as a result of the group’s definitions.
Mr. Trump carried a campaign to reduce the inflation that was afflicted in the United States and other countries during the Biden administration.
Mr. Navarro said that the customs tariff led to the stability of prices and prosperity in Trump’s first state and will again. “Trump confidence,” said.
