Fact Check Team: How Trump's tariff plans will impact economy, potential deficit reduction

President-elect Donald Trump has made tariffs a cornerstone of his economic agenda, proposing aggressive measures on foreign goods, particularly from China. ranging from 60% to 100% on Chinese imports and a universal tariff of up to 20% on imports from other countries. According to the :

Republicans will support baseline Tariffs on Foreign made goods, pass the Trump Reciprocal Trade Act, and respond to unfair Trading practices. As Tariffs on Foreign Producers go up, Taxes on American Workers, Families, and Businesses can come down.

Tariffs, defined as taxes on imported goods, are intended to protect domestic industries by making foreign products more expensive. , tariffs can raise prices, reduce the availability of goods and services, and create economic burdens on foreign exporters.

According to , Trump's approach to tariffs marks a shift from previous administrations, utilizing Section 301 of the Trade Act of 1974. Section 301 allows the president to impose tariffs without congressional approval to address unfair trade practices. Historically, the U.S. has used Section 301 to resolve disputes through the World Trade Organization, but Trump has opted for direct tariff impositions, particularly targeting China.

The Trump Administration attributed this shift in policy to its determination to close a persistent gap between U.S. and foreign government practices that it said disadvantaged U.S. firms.

The Congressional Budget Office projects the 2025 deficit will approach $2 trillion. estimates that Trump's tariffs could reduce the deficit by about $200 billion, or roughly 10%.

During Trump's first term, tariffs were placed on products such as solar panels, washing machines, steel, aluminum, and a wide range of Chinese goods. reported that these tariffs led to higher consumer prices, costing the average American household several hundred to over a thousand dollars annually. In 2019, the U.S. collected in tariffs.

that his tariffs will lower taxes on American workers, families, and businesses. While he has not provided specific evidence, that tariffs can benefit domestic companies by making their goods cheaper than imported products, thus increasing demand.

As Trump prepares to implement his tariff strategy, the economic impact and potential for deficit reduction remain to be seen.