{"id":11581986,"date":"2025-07-28T09:46:08","date_gmt":"2025-07-28T13:46:08","guid":{"rendered":"https:\/\/www.baltimoresun.com\/?p=11581986"},"modified":"2025-07-28T10:18:06","modified_gmt":"2025-07-28T14:18:06","slug":"trump-tariffs-generate-100-billion-but-effect-on-economy-is-up-for-debate","status":"publish","type":"post","link":"https:\/\/www.baltimoresun.com\/2025\/07\/28\/trump-tariffs-generate-100-billion-but-effect-on-economy-is-up-for-debate\/","title":{"rendered":"Trump tariffs generate $100 billion, but effect on economy is up for debate"},"content":{"rendered":"

President Donald Trump’s tariffs have generated approximately $100 billion so far this year, according to the U.S. Treasury as reported by Reuters, and have the potential to collect $300 billion by the end of the year.<\/p>\n

The figures came out before Trump and European Union Commission President Ursula von der Leyen announced a trade agreement on Sunday. They said the EU has agreed to purchase $750 billion of American energy and invest $600 billion into the U.S. beyond current levels, while the U.S. imposes a 15% tariff on most goods being imported from the EU.<\/p>\n

Trump had threatened to place a 30% tariff rate on the EU if it failed to reach a deal with the U.S. Negotiations continue with other countries before Friday’s deadline for trade deals imposed by the Trump administration.<\/p>\n

Experts at Bankrate have warned that the cost of Trump’s tariffs on trading partners could ultimately be passed on to American consumers, unless importers or businesses absorb the costs themselves.<\/p>\n

Did prices rise in June?<\/h3>\n

The June Producer Price Index report indicated that producer prices did not rise, according to the U.S. Bureau of Labor Statistics, suggesting the U.S. has so far avoided significant economic fallout from the tariffs.<\/p>\n

Morgan Stanley analysts project tariffs could bring in $2.7 trillion over the next decade, according to reporting from Fortune, while the Congressional Budget Office estimates they could reduce the deficit by $2.8 trillion, but also slow economic growth.<\/p>\n

“In CBO\u2019s assessment, the changes in tariffs will reduce the size of the U.S. economy \u2014 in part because of tariffs imposed by other countries in response to the increases in U.S. tariffs,” said the CBO.<\/p>\n

Will prices eventually rise?<\/h3>\n

Federal Reserve Chair Jerome Powell cited tariffs as a reason for not cutting interest rates<\/a>, despite a decline in producer-price inflation to 2.3% year over year in June. The potential effect of tariffs on consumer prices could be delayed.<\/p>\n

The CBO projects the U.S. GDP will be 0.6% smaller in 10 years because of tariffs. Morgan Stanley has cautioned that investors may be underestimating the long-term risks associated with tariffs.<\/p>\n

The bottom line<\/h3>\n

While tariffs might reduce the deficit by $2.8 trillion over the next decade, financial experts describe them as a tax on imports that could affect consumers’ prices. The CBO anticipates slightly weaker economic growth over time, and although prices are currently down, the Federal Reserve remains cautious about potential inflationary effects from tariffs.<\/p>\n

The Federal Open Market Committee meets this week, but don’t expect a rate cut. Economists at EY predict the Fed to deliver two cuts in 2025, one in September and another in December, assuming inflation continues to decline and the labor market shows signs of cooling.<\/p>\n

Have a news tip? Contact Emma Withrow at\u00a0ewithrow@sbgtv.com<\/a>\u00a0or at\u00a0x.com\/emma_withrow<\/a>.\u00a0Content from The National Desk is provided by Sinclair, the parent company of FOX45 News.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Experts at Bankrate have warned that the cost of President Donald Trump’s tariffs could ultimately be passed on to American consumers, unless importers or businesses absorb the costs themselves.<\/p>\n","protected":false},"author":178,"featured_media":11573469,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2025-07-28T14:18:08Z","apple_news_api_id":"e7dfba26-5cb2-4a5b-bd72-83f1bc7ba3a5","apple_news_api_modified_at":"2025-07-28T14:18:08Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/A59-6JlyySlu9coPxvHujpQ","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"subheadline":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[91,85],"tags":[25302,26071],"feature":[],"location":[],"type-of-work":[],"coauthors":[25722],"class_list":["post-11581986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-news","tag-fox45-news","tag-trump-administration"],"post_status":"","edit_last":0,"edit_lock":0,"highlights":"","original_byline":"","original_canonical":"","original_category":"","original_email":"","original_id":0,"original_pubdate":"","original_source":"","primary_section":"91","primary_tag":0,"print_workflow_body":{"deck_headline":"","print_title":"Trump tariffs generate $100 billion, but effect on economy is up for debate","print_subheadline":"","print_priority":"","print_placement":"inside","print_planned_ready":"","print_pub_date":1753747200,"print_slug":"TBS-L-FOXTARIFFSECONOMICEFFECT-0729","print_content":"

President Donald Trump's tariffs have generated approximately $100 billion so far this year, according to the U.S. Treasury as reported by Reuters, and have the potential to collect $300 billion by the end of the year.<\/p>\n

The figures came out before Trump and European Union Commission President Ursula von der Leyen announced a trade agreement on Sunday. They said the EU has agreed to purchase $750 billion of American energy and invest $600 billion into the U.S. beyond current levels, while the U.S. imposes a 15% tariff on most goods being imported from the EU.<\/p>\n

Trump had threatened to place a 30% tariff rate on the EU if it failed to reach a deal with the U.S. Negotiations continue with other countries before Friday's deadline for trade deals imposed by the Trump administration.<\/p>\n

Experts at Bankrate have warned that the cost of Trump's tariffs on trading partners could ultimately be passed on to American consumers, unless importers or businesses absorb the costs themselves.<\/p>\n

Did prices rise in June?<\/h3>\n

The June Producer Price Index report indicated that producer prices did not rise, according to the U.S. Bureau of Labor Statistics, suggesting the U.S. has so far avoided significant economic fallout from the tariffs.<\/p>\n

Morgan Stanley analysts project tariffs could bring in $2.7 trillion over the next decade, according to reporting from Fortune, while the Congressional Budget Office estimates they could reduce the deficit by $2.8 trillion, but also slow economic growth.<\/p>\n

\"In CBO\u2019s assessment, the changes in tariffs will reduce the size of the U.S. economy \u2014 in part because of tariffs imposed by other countries in response to the increases in U.S. tariffs,\" said the CBO.<\/p>\n

Will prices eventually rise?<\/h3>\n

Federal Reserve Chair Jerome Powell cited tariffs as a reason for not cutting interest rates<\/a>, despite a decline in producer-price inflation to 2.3% year over year in June. The potential effect of tariffs on consumer prices could be delayed.<\/p>\n

The CBO projects the U.S. GDP will be 0.6% smaller in 10 years because of tariffs. Morgan Stanley has cautioned that investors may be underestimating the long-term risks associated with tariffs.<\/p>\n

The bottom line<\/h3>\n

While tariffs might reduce the deficit by $2.8 trillion over the next decade, financial experts describe them as a tax on imports that could affect consumers' prices. The CBO anticipates slightly weaker economic growth over time, and although prices are currently down, the Federal Reserve remains cautious about potential inflationary effects from tariffs.<\/p>\n

The Federal Open Market Committee meets this week, but don't expect a rate cut. Economists at EY predict the Fed to deliver two cuts in 2025, one in September and another in December, assuming inflation continues to decline and the labor market shows signs of cooling.<\/p>\n

Have a news tip? Contact Emma Withrow at\u00a0ewithrow@sbgtv.com<\/a>\u00a0or at\u00a0x.com\/emma_withrow<\/a>.\u00a0Content from The National Desk is provided by Sinclair, the parent company of FOX45 News.<\/em><\/p>\n","print_budget_line":"","print_excerpt":"Experts at Bankrate have warned that the cost of President Donald Trump's tariffs could ultimately be passed on to American consumers, unless importers or businesses absorb the costs themselves.","print_notes":"","photo_limits":"Photo limits are: 1 featured image, 5 featured gallery images, 5 embedded gallery images and 5 in-article embedded images. Articles that exceed these limits will not export. 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