Tariff Revenue Has Increased 109%: Are Americans Paying for Them?
Written by
Lydia Kibet
Edited by
Jenna Klaverweiden
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The United States has generated $96.9 billion so far this year from tariffs as of June 30, a 109.3% jump from the same period last year, according to data collected by Politico. This massive increase largely stems from the at least 10% baseline tariff on most imports.
While the federal government is collecting billions in tariff revenue, the big question remains: Are Americans paying for them? Let’s take a closer look.
Also see six everyday items you can buy that won’t have a tariff price increase.
American Importers Are Responsible
Tariffs are taxes on goods entering the country. While they’re levied on foreign imports, it’s often importers and businesses that are paying for them upfront. As the Tax Foundation noted, when there are tariffs imposed by the U.S. government, businesses that are importing goods pay the tax directly to the U.S. government.
As reported by NPR, Patrick Allen, who imports French wine in Columbus, Ohio, explained the direct impact: “It’s a tax on the backs of people who are importing either raw materials or, in my case, wine. And eventually it gets built into the price everybody is paying for goods.”
Consumers Face Higher Prices
Most businesses don’t eat the cost of tariffs alone. They can also pass it along to consumers. Many importers are forced to raise prices of imported goods to stay afloat. Whether it’s electronics, clothing or toys, those added costs show up in store prices. In fact, CNBC reported that footwear, apparel and bags in many department stores have seen cost increases recently.
“Most suppliers are passing through tariffs at full value to us … the supplier considers it a tax, and taxes always get passed through to the customer,” a purchasing manager at a U.S. chemical company told the Institute for Supply Management.
Tariffs Could Reduce National Debt, but at What Cost?
The Congressional Budget Office (CBO) estimates that if tariffs remain in place for a decade, it will help reduce federal debt by $2.8 trillion. While this may sound like good news, the CBO also thinks inflation will increase by an annual average of 0.4 percentage points in 2025 and 2026, which could potentially reduce the purchasing power of millions of Americans and slow down the economy.
Slower economic growth could lead to job losses, especially in industries dependent on global supply chains, like manufacturing and retail.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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