Trumps tariffs could decrease the national debt by 4 trillion !

[yidnar]

The latest analysis from the CBO says Trumps tariffs could decrease the National debt by 4 trillion over the next decade ! a major step in the right direction !

Trump is bringing in enough revenue from tariffs to cut deficits by $4 trillion over the next decade, CBO says | Fortune

In just two months, Trump added another $1.5 trillion of deficit reduction in the form of new tariffs, CBO said. Still, the One Big Beautiful Bill Act will raise deficits by $3.4 trillion.

fortune.com

from the article ..
President Donald Trump’s hike in tariffs is projected to generate enough revenue to cut federal deficits by $4 trillion over the next decade, according to the latest analysis by the Congressional Budget Office (CBO). The nonpartisan agency said it had updated its estimates of tariff revenues as part of the development of the short-term economic forecast covering 2025 to 2028, to be published on Sept. 1



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[shockedcanadian]

The latest analysis from the CBO says Trumps tariffs could decrease the National debt by 4 trillion over the next decade ! a major step in the right direction !

Trump is bringing in enough revenue from tariffs to cut deficits by $4 trillion over the next decade, CBO says | Fortune

In just two months, Trump added another $1.5 trillion of deficit reduction in the form of new tariffs, CBO said. Still, the One Big Beautiful Bill Act will raise deficits by $3.4 trillion.

fortune.com

from the article ..
President Donald Trump’s hike in tariffs is projected to generate enough revenue to cut federal deficits by $4 trillion over the next decade, according to the latest analysis by the Congressional Budget Office (CBO). The nonpartisan agency said it had updated its estimates of tariff revenues as part of the development of the short-term economic forecast covering 2025 to 2028, to be published on Sept. 1



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Here is the truth and it's not something libertarians are going to like and I consider myself one: this was etched in stone over the last decade. Once the U.S debt spiralled out of control I knew it was either going to be high tariffs to raise revenue, much higher taxes on the domestic population, or, in the worst case scenario, America looking to steal resources from another nation.

Since the last option is not appealing to those in your orbit, and the loss to the world if the U.S defaulted; I loudly promoted that the U.S needs to cut its debt. This has been known for years.

Since debt isn't being cut, revenue must be raised.

 

[task0778]

If these rates remain, primary deficits would shrink by $3.3 trillion and interest payments would fall by another $700 billion, bringing the total deficit reduction to $4 trillion over 10 years.

IOW, Tariffs will reduce the deficit by about $4 trillion over what it would have been with no tariffs. IF THE TARIFFS REMAIN IN EFFECT. It's not like the national debt will be $4 trillion less in 10 years than it is now, that is not going happen unless a shit-load of spending gets curtailed. But will Trump keep them in effect during his administration? He has kinda waffled a little bit so far, ending tariffs if a country reduces theirs, right?


It’s an open question whether the tariffs will offset the impact of OBBBA, from a deficit standpoint. The CRFB has gamed out several scenarios—including the bulk of the tariffs being ruled illegal and thrown out by an appeals court—and warned that the nation’s finances have “deteriorated” since January. In June, the CRFB also warned that the tariffs wouldn’t cover the costs of OBBBA. However, the CBO’s significant upgrade of deficit reduction calls that calculation into question. Still, there is the question of who “eats” the tariffs, to paraphrase Trump’s famous instructions to Walmart about its margins. As many economists have noted, the tariffs essentially function as a sales tax on American consumers, so the deficit reduction is coming from, more or less, you and me.

What will happen over that span of time regarding inflation and economic growth? True, so far almost nothing, but some say the impact has yet to occur. Historically, tariffs have never worked out in the long run. Short run, okay but sooner or later somebody claims victory and the tariffs go away. It's the same with the Balance of Trade, it might well drop somewhat in the near term but it will not permanently change.

 

[task0778]

Since debt isn't being cut, revenue must be raised.

But the politicians will just spend more. There just isn't an appetite for cutting spending, and there's no way in hell that the American voter will not accept higher taxes enough to offset what is currently a $1.8 trillion annual deficit. Look at the crap that is in the OBBBA.

Sooner or later the debt will grow so large that it can no longer be ignored. And higher tariffs will not change that.

 

[ElmerMudd]

The latest analysis from the CBO says Trumps tariffs could decrease the National debt by 4 trillion over the next decade ! a major step in the right direction !

Trump is bringing in enough revenue from tariffs to cut deficits by $4 trillion over the next decade, CBO says | Fortune

In just two months, Trump added another $1.5 trillion of deficit reduction in the form of new tariffs, CBO said. Still, the One Big Beautiful Bill Act will raise deficits by $3.4 trillion.

fortune.com

from the article ..
President Donald Trump’s hike in tariffs is projected to generate enough revenue to cut federal deficits by $4 trillion over the next decade, according to the latest analysis by the Congressional Budget Office (CBO). The nonpartisan agency said it had updated its estimates of tariff revenues as part of the development of the short-term economic forecast covering 2025 to 2028, to be published on Sept. 1



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Who do you think pays the tariffs? The US business pays the tariff when goods arrive in USA.
The business either absorbs the cost or pass on to the customer with higher prices.
Either way a tariff is a tax paid for by US businesses or by US consumers.

 

[Crepitus]

Trumps tariffs could decrease the national debt by 4 trillion !​

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And every last penny comes straight out of out pockets!

Ain't it grand?

 

[yidnar]

And every last penny comes straight out of out pockets!

Ain't it grand?

inflation is under control ..

 

[Crepitus]

inflation is under control ..

Non sequitur.

Try again.

 

[Woodznutz]

Who do you think pays the tariffs? The US business pays the tariff when goods arrive in USA.
The business either absorbs the cost or pass on to the customer with higher prices.
Either way a tariff is a tax paid for by US businesses or by US consumers.

Tariffs penalize everyone that buys imports. It's good to spread the pain around.

 

[Woodznutz]

As many economists have noted, the tariffs essentially function as a sales tax on American consumers, so the deficit reduction is coming from, more or less, you and me.

The money was borrowed to pay for shiny things for us. It's time we paid it back.

 

[Woodznutz]

Trump leverages everything. He'll do it with the country's economy as well. This doesn't look good.

 

[Woodznutz]

But the politicians will just spend more. There just isn't an appetite for cutting spending, and there's no way in hell that the American voter will not accept higher taxes enough to offset what is currently a $1.8 trillion annual deficit. Look at the crap that is in the OBBBA.

Sooner or later the debt will grow so large that it can no longer be ignored. And higher tariffs will not change that.

At $33-37Trillion in debt, we're past the point of no return.

 

[task0778]

The money was borrowed to pay for shiny things for us. It's time we paid it back.

I have no idea what you're trying to say. What money was borrowed? And from whom? Are you referring to the national debt?

 

[task0778]

At $33-37Trillion in debt, we're past the point of no return.

And still headed in the wrong direction. Nobody in DC is interested in fiscal sanity. Nor most of voters either.

 

[Woodznutz]

I have no idea what you're trying to say. What money was borrowed? And from whom? Are you referring to the national debt?

Yes, the national debt. Shiny things and votes.

 

[task0778]

Yes, the national debt. Shiny things and votes.

I am in complete agreement. The technical term is, we're fucked and not smart enough to realize it yet.

 

[Woodznutz]

And still headed in the wrong direction. Nobody in DC is interested in fiscal sanity. Nor most of voters either.

We have entered into a kind of national insanity regarding the debt, deficit, and budget. Not only do we think we can borrow our way to prosperity but that we can borrow our way out of debt.

We're like the truckers that were paid by the load they hauled and were losing money on each load. So, they decided that they needed a bigger truck.

 

[John Edgar Slow Horses]

The consumer pays the increased cost, as it is passed on by the importer.

 

[ElmerMudd]

Tariffs penalize everyone that buys imports. It's good to spread the pain around.

Usually the US manufactured product is the same price or higher than the import with tariff. That is why you have a tariff, to make the US manufacturer able to compete.
No tax but higher costs to the US consumer.

 

[task0778]

We have entered into a kind of national insanity regarding the debt, deficit, and budget. Not only do we think we can borrow our way to prosperity but that we can borrow our way out of debt.

We're like the truckers that were paid by the load they hauled and were losing money on each load. So, they decided that they needed a bigger truck.

To many people believe we can just print enough money to get out of debt. It has never worked.