Trump's tariff strategy

 PJ Media:

...

Here we are in Aug. 2025, and the Congressional Budget Office just dropped a bombshell that completely shatters the left’s narrative against Trump’s tariff strategy. 

As of August 19, we estimate that the effective tariff rate for goods imported into the United States has increased by about 18 percentage points when measured against 2024 trade flows. We project that increases in tariffs implemented during the period from January 6, 2025, to August 19 will decrease primary deficits (which exclude net outlays for interest) by $3.3 trillion if the higher tariffs persist for the 2025‒2035 period. By reducing the need for federal borrowing, those tariff collections will also reduce federal outlays for interest by an additional $0.7 trillion. As a result, the changes in tariffs will reduce total deficits by $4.0 trillion altogether.

That’s no rounding error. 

The numbers are simply eye-popping, and they tell the story that the media doesn’t want you to know.

Let’s put that in perspective. Back in June, the CBO had already stunned critics by predicting Trump’s tariffs would shrink the deficit by $3 trillion. That was based only on trade actions taken through May 13.

Trump, naturally, celebrated the news on Truth Social.

“I am pleased to announce that the Radical Left Representatives working at the Congressional Budget Office (CBO) have now admitted how incredible my Tariff strategy has been, saying that, ‘Trump’s Tariffs reduce the deficit by $4 Trillion Dollars,’” he wrote. “When I began my Tariff policy suggestions, they refused to acknowledge the potential SUCCESS that would be derived. Deficits are DOWN, Taxes are DOWN, Energy is DOWN, Prices generally are DOWN, the only things that are UP are, Take Home Pay, the Stock Market, and our Country, which is the ‘HOTTEST’ anywhere in the World. Thank you for your attention to this matter!”

...

The tariffs are definitely increasing revenue to the US Treasury.  So far, they have not negatively impacted the US economy.  Shrinking the deficit should be seen as a good thing for the US economy and US taxpayers.

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