Impact of Universal Tariffs on Tax Revenue

Implementing a universal baseline tariff of 10% could generate approximately $2 trillion in tax revenue for the U.S. government over a span of ten years. However, this increase in revenue would correspond to an average annual tax hike of over $1,200 for households. If the tariff were increased to 20%, the anticipated revenue would reach around $3.3 trillion, raising average household taxes by more than $2,000 annually. These figures highlight a significant imbalance, as the revenue generated would not sufficiently offset the costs associated with proposed tax cuts.