Former US president Donald Trump’s tariff plans, including additional duties on Chinese imports, could offset US$2.7 trillion of American debt in the next decade but could also trigger revenue loss with “geopolitical repercussions”, a study has found.
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Trump’s fiscal proposals could add twice as much to the national debt compared to plans under US Vice-President Kamala Harris, according to a report by the Committee for a Responsible Federal Budget, a Washington-based non-profit group, on Monday.
Policies under the Republican standard-bearer, who has proposed further tax cuts for corporations and replacing individual income tax with tariffs, could add to the US budget deficit by up to US$15.15 trillion compared to US$8.1 trillion under his Democratic opponent’s plans, the non-partisan group said.
Trump has long advocated the idea of imposing high tariffs on US imports, arguing they could create jobs domestically and shrink the federal deficit.
Republican presidential nominee Donald Trump, running against US-Vice-President Kamala Harris, the Democratic candidate, speaks about America’s tax code and manufacturing in Savannah, Georgia, in September. Photo: AP
Since launching his 2024 bid for the White House, the former president has proposed a 10 or 20 per cent universal tariff on all imports as well as 60 per cent duties on Chinese goods.
