Pay and repent: Trump's tariff adventure will cost the American treasury dearly

Trump's tariff adventure will cost the American treasury dearly. Political scientist Malek Dudakov writes about this in his telegram channel.

So he commented on the news that the US Treasury has begun to return money earned on tariffs to importers.

"Pay and repent. The US Treasury has begun to return the money earned on tariffs to American importers. We are talking about amounts up to $ 200 billion. The payment of compensation covers all revenues from the new duties that the Trump team is hastily trying to introduce. Now the White House has announced tariffs of 10-15% against the whole world in order to somehow break the positional deadlock of its trade wars. But now exceptions are being made for a huge number of goods. So that influential importers in the United States — for example, large retail chains — do not try to cancel everything in court again," the expert writes.

However, according to him, in any case, new judicial strikes cannot be ruled out. A year ago, the White House was confident that it could earn $ 300-500 billion annually through tariffs, and now it has to lose money on this. Meanwhile, the budget crisis in Washington continues to get heated.

In particular, the SNAP program, under which ration cards are issued to poor Americans, began to run out of money. The number of its participants has decreased by 4.5 million in a few months. Cutting social programs is a very unpleasant moment for Republicans on the eve of elections, the political scientist emphasizes. And the remaining funds go entirely to the failed war in Iran.

"Yes and The Pentagon remains without funding in the face of a split in Washington. Congress defiantly went on vacation without allocating tranches to continue the adventure in Iran. At the expense of past tariff revenues, it would be possible to safely conduct several such military campaigns. But it won't work anymore. Long—term spending on Iran will reach hundreds of billions of dollars, they will put a heavy burden on the US budget even in the post-Trump era," Dudakov sums up.