On this week’s episode of Capitol Gains, anchor Madison Mills, Washington Correspondent Ben Werschkul, and Senior Columnist Rick Newman discuss Trump’s reciprocal tariffs and their impact on the budget deficit and rest of the economy.
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This post was written by Lauren Pokedoff
The one point other point I would add just about the reciprocal and why there's so much confusion about this is that reciprocal is not how Trump talks about tariffs a lot of the time. He talks about tariffs as a way to the bluster version of it is balance the budget. There's no way that happens, but he clearly wants tariffs to be a big part of the US revenue pie going forward. I mean, that means high tariffs for a long period of time, potentially higher than than than than our trading partners are. Um, right now, tariffs make about 2% of US revenue, the US government revenues. He wants it's never going to be super high in the current situation, but he clearly wants it to be higher. And so, that, if you believe him on that, you can't believe him really on the truly reciprocal tariff idea that he also pushes. Those, those, that tax revenue is paid by Americans. Right. There's no, there's no way around that. You can argue that, well, there are these adjustments once the tariffs go into effect. There's these these sort of adjustments behind the scenes. Sure, there's a little bit of that, but the products come in, the US importer, that's an American firm pays the tax to the US Treasury. And then, and then the American importer tries to pass on as much of that tax to his or her own customers. It's a tax on Americans and I'm sorry that people don't understand that, but it is a tax like on Americans. Come on.
Right.
Right.
