President Donald Trump has predicted that his tariffs could raise as much as $6 trillion over the next decade in federal tax collections. These include up to 104% tariffs on China, plus the combination of reciprocal tariffs — we charge them whatever they charge us. Also, don’t forget the protectionist tariffs on steel, aluminum, autos, lumber, etc.
The tariff rates put on the table by Trump are higher than those at any other time in the last century, so it is no wonder we’ve seen a painful stock selloff, reducing asset values by well over $7 trillion.
But what the markets are missing is that Trump has also announced that money raised from the tariffs will be offset by other tax cuts. If that is the case, then the net impact of the tariffs could end up being a positive for the economy.
He’s on to something…
