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Trump’s 2025 tariffs generate $287 billion but miss on jobs and deficit targets
Customs duties imposed by President Donald Trump in 2025 generated $287 billion in revenue for the United States; that is three times the amount collected in 2024. However, as The New York Times noted, that sum remains modest compared with the more than $2 trillion in annual income tax revenue. More importantly, and contrary to the administration’s claim that foreign firms would bear the tariff burden, the payments ultimately came from American companies, which absorbed higher costs for imported goods.
The results of the tariff policy disappoint on the key metrics that Trump promised to improve. The trade deficit, which he vowed to shrink, rose again in early 2026 after a period of decline, and for January–November 2025, remained more than 4% above the 2024 level. The pledge to protect factory jobs also did not materialize. Despite the tariffs, the manufacturing sector continued to cut jobs in 2025.
Producers have openly criticized the tariffs, saying they harm US industry competitiveness by raising the cost of metals and equipment needed to operate factories. Construction costs for new plants rose sharply compared to the pre‑pandemic period. However, they fell from the late Biden administration's peak when federal grants actively supported semiconductor and battery production. Economic studies show that the tariffs led to higher prices for imported goods. Thus, prices began to rise after Trump announced sweeping global tariffs in April 2025, reversing the prior downward trend.
Data from the Kiel Institute for the World Economy indicate that the tariffs did not attract foreign capital to the United States. Instead, the cost burden fell entirely on Americans through higher retail prices and tax revenues paid by domestic, not foreign, firms.
Published 05 February 2026
© InstaFintech Group
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© InstaFintech Group
