Where will the tariff money be spent
After coming to power, US President Donald has increased the collection of tariffs in the US. However, it will not reduce the troubles of the country. The White House says that in the second term of President Donald Trump, the tariff collection has reached a historic height, which will be about $ 150 billion in the coming time. But with this tariff recovery, America debt will not reduce, let us know it in details.
In April, the Trump administration imposed a 10% tariff on almost all imported goods, as well as increased tax on the basis of trade deficit with some countries. Due to this, it earned around $ 100 billion in the first four months, which is more than three times compared to the previous year. Treasury officials believe that the tariff can earn more than $ 300 billion every year. Commerce Secretary Howard Lutnik told Fox Business that there could be a collection of up to $ 50 billion every month.
Where can the money be spent?
With this money, the government can fill some part of its $ 1.3 trillion deficit. Apart from this, Americans are talking about giving ‘tariff rebate check’, but for this the approval of Congress is needed. According to the New York Times, Republicans are hoping that the tariff will help in completing the $ 3.4 trillion deficit. But this is not so easy.
Why America’s difficulties will not be solved?
Although America may earn a lot of money with tariffs, but it will benefit less. According to research by Peterson Institute for International Economics (Piie), tariffs can earn trillions of dollars in a decade, but this benefit will be reduced by economic recession and retaliation of other countries. For example, increasing 15% tariffs can provide $ 3.9 trillion, but if other countries impose counter -tariffs, it will reduce to $ 1.5 trillion. Apart from this, the total debt of America is more than 36 trillion dollars, which is difficult to complete with tariffs.