"The U.S. government is currently collecting tariff revenues at an annualized pace of roughly $350 billion, a "significant" amount, according to Torsten Slok, chief economist at Apollo Global Management. In his typical style, one of brevity and striking charts, Slok added that the figure equates to roughly 18% of annual household income tax payments, underscoring that tariffs are not a marginal tool but a significant revenue source shaping America's economic and trade landscape."
"Fortune Senior Editor-at-Large Shawn Tully and Steve Hanke, the economist famously known as the " money doctor " for his expertise on hyperinflation, have argued that the tariffs are no more than a value added tax, something well known in Europe since shortly after the end of the Second World War. Tully and Hanke argue that the tariffs constitute "America's answer to Europe's fatal attraction that's long been the leading enabler for the region's extremely high levels of government spending.""
""The bottom line is that the amount of money collected in tariff revenue is very significant," Slok argues. Given President Trump's reluctance to raise taxes elsewhere, that may be the point. While tariffs bring in significant funds, the burden is not evenly borne. Economists widely agree that tariff costs are passed along to consumers. When the government imposes a tax on imported goods, retailers and wholesalers often raise prices, which can lead to higher consumer costs across a range of products from electronics to household goods."
Tariffs are generating about $350 billion annually, equating to roughly 18% of annual household income tax payments and constituting a major government revenue source. Tariffs function like a value-added tax in practice, according to some economists, and may enable higher levels of government spending by providing sizable revenues. The revenue effect helps explain reliance on tariffs amid reluctance to raise other taxes. The cost of tariffs is often passed to consumers, causing higher prices for a wide range of imported goods and producing uneven burdens across households.
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