Gunther, FACTS MATTER!
HERE ARE THE FACTS. READERS, YOU DECIDE
As of 2025, the U.S. has collected approximately $5.2 trillion in tariff revenue over a 10-year projection, but the economic impact is overwhelmingly negative undermining the boast that tariffs are fueling prosperity.
Tariff Revenue (2025 Estimates):
• $5.2 trillion projected over 10 years (conventional basis)
• $4.5 trillion projected over 10 years (dynamic basis accounting for economic effects)
• Equivalent to raising the corporate tax rate from 21% to 36%
• Average cost per U.S. household in 2025: $1,300 in higher prices
• Tariffs imposed: minimum 10% on all imports; 11–50% on imports from 57 countries
Economic Impact:
• Long-run GDP projected to fall by 6%
• Wages projected to decline by 5%
• Middle-income households face a $22,000 lifetime loss
• Tariffs reduce openness to trade and investment, worsening debt dynamics
• Public disapproval: 60% of Americans oppose the tariff policy; 55% believe it harms the country and their families
Conclusion,
While the raw revenue from tariffs appears substantial, it comes at a steep cost. The economic contraction—lower GDP, falling wages, and reduced investment—far outweighs the gains. Tariffs are not a dividend, nor are they a sustainable debt-reduction strategy. They function as a regressive tax on consumers and businesses, with disproportionate harm to middle-income families. The boast of “record investment” and “debt paydown” is not backed by the data. Instead, the policy has triggered inflationary pressure, supply chain disruptions, and widespread public dissatisfaction.