The New Indian Express ·
Trump waging a capital war to pay for profligacy
A bored Donald Trump recently pivoted back to his unfinished and chaotic economic wars. Restricted by a loss in the Supreme Court, the administration used tenuous arguments about forced labour and unfair trade practices to try to reimpose tariffs ranging from 10 to 50 percent.
Tariffs—Trump’s favourite word—have not corrected the trade deficit, which remains at over 3 percent of the US GDP. American importers and consumers have borne 96 percent of the cost, with foreign exporters absorbing only 4 percent.
Revenues from tariffs, which have consistently been below projections, is expected to cross $181 billion in 2026, below the record $264 billion in 2025. This amount is only 9.5 percent of the estimated 2026 budget deficit of $1.9 trillion and will not deliver the promised $2,000 dividend to citizens—a promise made way before the recent offer to pay each voter $5,000—or make possible the elimination of income tax.
