The trade war was never going to fix our deficit | Fortune

"The Supreme Court recently heard arguments in a case that will decide whether the president overstepped his authority by invoking an old war law to justify imposing tariffs on seemingly every country and product under the sun. Though White House lawyers changed their tune in front of the justices, up till this point, one of the administration's defenses throughout this trade war is that these tariffs are needed because they bring in substantial revenue for the country,"

"money that could be used to help turn the tide on Social Security's and Medicare's fiscal outlooks. But whether the administration actually believes this tariff revenue is "incidental" to their larger goal, the truth is these tariffs will not alter the trajectory of our national debt or entitlement programs. In many cases, it may make their outlook worse. For the sake of the economy, SCOTUS should put an end to this abuse of power."

"In their official brief to the Court, White House officials claimed that if the courts decide that the law in question, the International Emergency Economic Powers Act , can't be used for unilaterally levying tariffs, the lost revenue would "lead to financial ruin." A spade should be called a spade, and it's true that if SCOTUS rules against the White House, there would be a negative fiscal impact."

Supreme Court review will determine whether the president exceeded authority by using the International Emergency Economic Powers Act to impose broad tariffs. White House officials contend those tariffs generate substantial revenue that could aid Social Security and Medicare. Analysis shows the tariffs will not change the long-term trajectory of national debt or entitlement programs and may worsen their outlook. The administration warned that losing the authority would cause severe fiscal harm. The Tax Foundation estimates the IEEPA tariffs would raise about $1.8 trillion over the next decade. Macroeconomic effects, including a nearly 0.4 percent reduction in GDP, reduce projected tariff revenue by over $400 billion, leaving these levies to contribute less than 2 percent of federal revenue over ten years.

Read at Fortune