Taxpayers Earn $1.4 Billion from Trump’s Tariff War

In a stunning turnaround of America’s economic strength, the Trump Administration continues to impose a tariff war on behalf of American businesses, workers and taxpayers.

In under five months, the government has hauled in upwards of $1.4 billion in tariff revenue on steel and aluminum imports, and that figure could top $7.5 billion by year’s end, according to reports. The revenue goes directly into government coffers, and may begin to offset the $9-trillion in debt added by the Obama Administration that hit a record national deficit. Despite political insiders decrying the trade spats by Pres. Donald J. Trump, it appears American taxpayers are already on the winning end.

“Because of Tariffs we will be able to start paying down large amounts of the $21 Trillion in debt that has been accumulated, much by the Obama Administration, while at the same time reducing taxes for our people. At minimum, we will make much better Trade Deals for our country,” Pres. Trump tweeted.

According to reports by the Congressional Research Service, from March 23 to July 16, the country was on the receiving end of $1.1 billion in foreign steel levies and $344.2 million from aluminum. The EU already cried uncle and has made a commitment to enter into fair and equal trade with the long-term goal of zero tariffs from either side. Although negotiations with the EU, Mexico, Canada and others appear to be moving at a snail’s pace, American taxpayers continue to benefit from tariff revenue.

Trump Puts Tariff Squeeze on Turkey

The president’s “America First” policies recently included leveling tariffs against Turkey, where an American pastor was wrongfully incarcerated during the Obama years. Pres. Trump’s statements that tariffs were imminent unless the American Christian was released sent the country’s currency into a free fall. The evangelical Presbyterian has been an outspoken opponent of Turkish Pres. Erdogan for alleged genocide.

In a recent move to bring about the release of North Carolina Pastor Andrew Brunson, Pres. Trump doubled tariffs on Turkish steel imports to 50 percent and aluminum to 20 percent.

Until Pres. Trump slapped on tariffs, steel was a top 10 export for Turkey, and supported 8 percent of its trade balance. The U.S. tariffs have already slashed Turkey’s steel exports by approximately 56 percent through May. America was once Turkey’s primary steel export market. Although Turkey lacks the global relevance of trade partners such as the EU and China, the amped up steel and aluminum tariffs are reducing the U.S. Treasury’s need to borrow to fund the current budget deficit.

Tariffs a Stop-Gap Tool to Better Trade Deals

Treasury Secretary Steven Mnuchin has indicated that the administration’s long-term goal is to reduce penalties and achieve free, fair trade with other countries.

“We’re early in the stages, so I’m not going to give specific numbers,” Secretary Mnuchin said about tariff revenue. “Our long-term objective is not to collect tariffs. Our longer-term objective is to have free and fair and reciprocal trade.”

To that end, the Trump Administration has been open to excluding countries and companies that engage in fair trade or demonstrate a strong economic benefit to everyday Americans.

To date, there have been more than 33,000 tariff exclusion applications and requests for reimbursement from companies negatively impacted. Of those, about 1,400 were approved and 702 were denied. Thousands remain in limbo as their cases are scrutinized.

While the Trump Administration walks a fine line between collecting tariff revenue and supporting American companies, the tariff war with China appears to be a focal point to sustained American economic success.

China Can’t Afford a Trade War

The previous administration may have feared the large Chinese economy and popularity of cheap imports. The Trump Administration recognizes the United States holds the high ground in a tariff war.

Although both sides have expanded tariffs, experts see a China that has no real policy or solution to the skirmish.

“We have to realize that perhaps China isn’t as strong as when we at first think,” Milken Institute fellow Curtis Chin reportedly said. “China is still figuring out also how to deal with this trade situation, how to ensure the stability of its domestic economy.”

The Asia expert says that the cranked-up Trump economy insulates Americans from China’s retaliation and insistence on unequal trade. With massive inventories stuck in warehouses, China’s economy could grow fragile.

Chin speculates that China may be forced to dump products into other markets and take significant losses. Until the trade spat is resolved, taxpayers are winning, and Made in the USA brands have a leg up on imports.

~ Conservative Zone