Before President Donald Trump paused some new tariffs that he unveiled on April 2, several economic groups estimated that tariffs he has announced this year could raise between roughly $2 trillion and more than $4 trillion in federal revenue over a 10-year period. But that’s well short of the $6 trillion or $7 trillion that White House trade adviser Peter Navarro claimed the tariffs would raise to help pay for tax cuts, including an extension of the 2017 tax law.
On April 6, during an interview on “Sunday Morning Futures,” Navarro talked about the revenue-generating potential of Trump’s tariffs on imports. Trump announced on April 9 that he was suspending some of his so-called “reciprocal” tariffs for 90 days. (We’ve written about how the tariffs aren’t really reciprocal.)
“These tariff revenues, by the way, Jackie, $600, $700 billion they are going to raise a year, $6 trillion to $7 trillion over the 10-year period,” Navarro told Jackie DeAngelis, who hosted the Fox News show that day. “They’re going to help pay for the tax cuts. I’ll tell you this, Jackie. Every single dollar that comes in, in tariff revenues that we take from the foreigners who have been cheating us, are going to go right to the American public in terms of tax cuts and debt reduction.”