Donald's liberation Day promise? Trump’s tariffs set to rake in $6 trillion, triple WWII tax hike and the biggest in U.S history, says White House aide

White House senior trade advisor Peter Navarro claimed that US president Donald Trump's proposed tariffs would bring in $6 trillion in revenue over the course of a decade, as per reports. If this is achieved, it would not only be the largest tax increase in US history but would triple the tax hike enacted in 1942 to finance World War II, after adjusting for inflation, reported CNN.

Peter Navarro’s Says Tariffs Are “Tax Cuts”

Navarro called tariffs a "tax cut" as opposed to a tax increase for Americans, as per the report. During a Fox News interview, he claimed, “It’s the biggest tax cut in American history for the middle class, for the blue collar,” quoted The Hill.


He mentioned that “The message is that tariffs are tax cuts, tariffs are jobs, tariffs are national security,” as quoted by CNN. Navarro asserted that, “Tariffs are great for America. They will make America great again,” quoted CNN.

Can Tariffs Really Generate $6 Trillion?

Most economists reject this contention, contending that tariffs usually lead to increased costs for US businesses and consumers, according to CNN. Foreign countries and businesses usually pass the tariffs on imports on to consumers in the form of higher-priced products, instead of absorbing them, as per the report.

Trump will unveil more tariffs on foreign imports on Wednesday, which has been called "Liberation Day," according to CNN. This will be retaliation on what Trump considers as unfair barriers to US exports to other countries, he has already imposed tariffs on all goods from China, Mexico and Canada, and this week a 25% tariff on all imported cars will take effect, reported CNN.

Based on Navarro's estimate, the auto tariffs would generate $100 billion per year and other tariffs would generate an extra $600 billion per year, amounting to $6 trillion over ten years, according to the report.

Navarro said, “First of all, we’re going to raise about $100 billion with the auto tariffs alone. What we’re going to do is, in the new tax bill that has to pass, it absolutely has to pass, we’re going to provide tax benefits, tax credits, to the people who buy American cars,” as quoted by The Hill.

He also mentioned that, “The other tariffs are going to raise about $600 billion a year, about $6 trillion over a 10-year period, and we’re going to have tax cuts,” as quoted in the report.

FAQs

Why does Navarro say tariffs are a tax cut?
He argues that the tariffs will benefit US businesses and consumers, providing tax benefits and jobs.

How much will the auto tariffs raise?
Navarro estimates that tariffs on imported cars will raise around $100 billion per year, as per reports.