Economics

Summary

Donald Trump is pushing for high tariffs, not just to cut trade deficits but also as a revenue source to reduce domestic income taxes.

His administration envisions a return to 19th-century tariff-funded governance, but critics warn this won’t generate enough revenue and risks harming the economy.

Economists argue free trade benefits the U.S. more than protectionism, and tariffs could backfire by raising consumer prices and reducing trade.

If enacted, Trump's plan may isolate the U.S. economically while empowering global rivals like China.