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Trump tariffs: One year later
President Trump's tariffs have been a significant part of his economic policy, but questions remain about their effectiveness. FOX 9’s Maury Glover explains what has occurred one year later.
(FOX 9) - President Trump's tariffs have been a significant part of his economic policy, but questions remain about their effectiveness.
Impact of tariffs on the economy
What we know:
The U.S. has raised between $200-$300 billion in tariffs since January of last year, said Tyler Schipper, associate professor of economics at the University of St. Thomas.
This money is used for general government expenses, but it is not enough to balance the federal budget or reduce the national debt.
Where does the money go?
What they're saying:
"The short answer is the money's going to the Treasury, and at the U.S. Treasury, we're already running a budget deficit," said Schipper. "We spend more than we take in, and so this money kind of helps to offset some of that budget deficit now."
Who pays the cost?
Dig deeper:
According to the Tax Policy Center, the average tariff rate on all imports is about 17%.
A Federal Reserve Bank of New York analysis found that U.S. businesses and consumers, not foreign importers, paid nearly 90% of all tariffs, although the White House disputes these numbers.
'I think it makes people worse off'
Why you should care:
Tariffs are essentially taxes on products people buy, and they have broad implications for the economy.
While they can protect American industries from unfair competition, sweeping tariffs may raise costs for American consumers in ways that are hard to avoid.