Is the U.S. Government Financially Benefitting from Added Tariffs?
Tyne Morgan, FarmJournal's Pork
January 4, 2019
Purdue University economists fact-checks President Trump's tweet touting tariffs and the financial benefit it's providing to the U.S. government. ( MGN )
Trade negotiations between the U.S. and China are ongoing, with the trade truce now facing a deadline of less than two months away. U-S Trade Representative Robert Lighthizer has a busy schedule next week, as he and others are preparing for trade talks with China in Beijing. President Donald Trump took to twitter ahead of those talks, touting the benefits of tariffs.
The United States Treasury has taken in MANY billions of dollars from the Tariffs we are charging China and other countries that have not treated us fairly. In the meantime we are doing well in various Trade Negotiations currently going on. At some point this had to be done!
— Donald J. Trump (@realDonaldTrump) January 3, 2019
Does the government really benefit from tariffs? Purdue University Economist Wally Tyner said the President's tweet is accurate in saying the treasury does take in revenue from tariffs. However, Tyner said it's currently unknown how much the department is actually getting from the added tariffs. In the end, he said tariffs aren't good for the government or the economy.
“The way it works is an import comes into the border, a tariff is imposed, the treasury collects that tariff,” said Tyner...
more, including video report [1:30 min.]