jay trotta
Elite Member
- Joined
- Feb 8, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Connecticut
The tariff revenue that the U.S. Treasury collects isn’t earmarked for a specific goal.
“Tariff revenue is very fungible, so once it gets moved to the general account, it can really be spent on anything,” Zhang said.
Congress uses money from the general fund to help finance programs like Medicare and the military.
The U.S. has already brought in nearly $73 billion in revenue from tariffs so far this year, compared to $77 billion in tariff revenue for the entirety of 2024.
But during the trade war under the first Trump administration, farmers not only had to pay more for equipment thanks to tariffs on U.S. imports, but the countries they exported to placed retaliatory tariffs on their goods. The Trump administration ended up paying farmers $23 billion to offset their economic losses.
Economists consider tariffs a “deadweight loss” because of trade-offs like these, Zhang said.
Even if the Trump administration didn’t provide those subsidies, tariff revenue is still just a drop in the bucket. That $77 billion the U.S. raked in last year accounted for just 1.57% of total federal revenue.
And remember: U.S. shoppers are likely paying for a good chunk of tariff revenue since companies tend to pass down the costs of tariffs to consumers.
The Nations Debt is somewhere around $37 Trillion, big hoopla/press return and with revenue that is very fungible, will this become a shell game?
“Tariff revenue is very fungible, so once it gets moved to the general account, it can really be spent on anything,” Zhang said.
Congress uses money from the general fund to help finance programs like Medicare and the military.
The U.S. has already brought in nearly $73 billion in revenue from tariffs so far this year, compared to $77 billion in tariff revenue for the entirety of 2024.
But during the trade war under the first Trump administration, farmers not only had to pay more for equipment thanks to tariffs on U.S. imports, but the countries they exported to placed retaliatory tariffs on their goods. The Trump administration ended up paying farmers $23 billion to offset their economic losses.
Economists consider tariffs a “deadweight loss” because of trade-offs like these, Zhang said.
Even if the Trump administration didn’t provide those subsidies, tariff revenue is still just a drop in the bucket. That $77 billion the U.S. raked in last year accounted for just 1.57% of total federal revenue.
And remember: U.S. shoppers are likely paying for a good chunk of tariff revenue since companies tend to pass down the costs of tariffs to consumers.
The Nations Debt is somewhere around $37 Trillion, big hoopla/press return and with revenue that is very fungible, will this become a shell game?
