The Trump administration’s replacement tariff will generate only a fraction of the revenue lost after the Supreme Court struck down most of its 2025 levies, according to a new analysis, leaving the federal government staring at a potential $1.7 trillion hole over the next decade.
After the court ruled in February that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, President Donald Trump invoked Section 122 of the Trade Act of 1974 to impose a temporary 10% broad-based import tariff. Trump has since announced plans to raise it to 15%, though that change has not yet been formally enacted.
A Bigger Gap Over The Decade
The Committee for a Responsible Federal Budget (CRFB), using the Congressional Budget Office’s tariff model, estimated in a report released Wednesday, that the 10% tariff will raise roughly $35 billion …
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