US Economists Question Impact of Trump Tariffs
(MENAFN) A recent article published on Fortune magazine’s website on Sunday revealed that American economists believe increasing tariffs might decelerate the rise of U.S. debt but will not lead to any substantial decrease.
U.S. President Donald Trump has frequently asserted that the income generated from higher tariffs could both lower the United States’ national debt, which currently stands at 37 trillion dollars, and finance a public "dividend."
Trump’s main goal is "to pay down debt, which will happen in very large quantity," though he also mentioned the possibility that "we're taking in so much money that we may very well make a dividend to the people of America," earlier this month.
However, the Fortune report, referencing several American economists, expressed doubts about the president’s assertions.
Joao Gomes, a finance and economics professor at the Wharton School of the University of Pennsylvania, told Fortune that tariff revenue might help cover some expenses of the "One Big, Beautiful Bill Act," which the Congressional Budget Office estimates will increase debt by 3 trillion dollars by 2030.
Nonetheless, he believes it is unlikely to significantly reduce the overall national debt.
Desmond Lachman, a senior fellow at the American Enterprise Institute, described Trump’s claim of generating 300 billion dollars as merely "a drop in the ocean" compared to the escalating debt.
"The country is on a really dangerous debt trajectory," Lachman warned.
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