"The federal government has been collecting about $30 billion in tariffs every month or about four times as much as it took in before Trump returned to the White House. Trump has raised tariff rates to their highest level in nearly a century, but import taxes are still a small share of overall government revenue just over 5% in January."
"Most of the cost of tariffs is being paid by U.S. businesses, and in some cases, their customers. A working paper from Harvard professor and former IMF economist Gita Gopinath and Brent Neiman of the University of Chicago estimates that nearly all of the cost of Trump's tariffs are being paid by U.S. importers, not foreign suppliers as Trump has claimed. In some cases, importers have absorbed that cost, setting for lower profits."
"Since returning to the White House, Trump has raised a wide variety of tariffs. Not all of those tax increases were challenged at the Supreme Court. The tariffs at stake in the court case are those issued under the authority of the International Emergency Economic Powers Act, known as IEEPA, a 1970s statute that never uses the word tariff. IEEPA tariffs represent about half of all the import taxes the government is collecting each month."
The Supreme Court ruled that President Trump exceeded his authority by ordering tariffs using the International Emergency Economic Powers Act. Tariff collections have totaled about $30 billion per month, roughly four times pre-2021 levels, yet import taxes remain just over 5% of federal revenue. Tariff rates are the highest in nearly a century, but exemptions for items like coffee and bananas and importers’ production shifts reduced the tariff bill. U.S. importers and businesses bear most tariff costs; some absorb lower profits while others pass higher prices to customers. IEEPA-based tariffs account for about half of monthly import tax revenue. Not all tariff increases were included in the court case.
Read at www.npr.org
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