Trump says tariffs are going to be enough to pay down national debt. It likely won't even touch the sides [View all]
Trump says his tariff revenues will both pay down America’s $37 trillion debt and possibly fund a public “dividend,” but Treasury data shows they fall short of even covering monthly interest costs. In exclusive interviews with Fortune, Wharton’s Professor Joao Gomes and AEI’s Desmond Lachman warned that while tariffs may slow debt growth, they won’t meaningfully reduce it. Markets are largely skeptical of Trump’s math despite some unconventional revenue wins.
President Trump has a two-pronged plan for the proceeds of his tariff regime. Firstly, he says, it’s going to pay down America’s $37 trillion national debt. Secondly, he’s considering sharing the spoils with the public.
“The purpose of what I’m doing is primarily to pay down debt, which will happen in very large quantity,” Trump told media earlier this month. “But I think there’s also a possibility that we’re taking in so much money that we may very well make a dividend to the people of America.”
The plan sounds welcome, in theory. But there’s just one problem. At present, tariff revenues don’t even cover the interest on the debt—let alone reduce its overall size.
https://finance.yahoo.com/news/trump-says-tariffs-going-enough-080300997.html
Trump's alternative math?
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