Video Title: Trump’s Tariffs Are Raking in Billions. Where Does It All Go? | WSJ
Channel: The Wall Street Journal
Speakers: Reporter, Trump
Duration: 00:05:37
Overview
This video explains how the US collects tariff revenue under President Trump, how much money has been generated, and where that money goes. It also touches on the legal challenges surrounding these tariffs.
Key takeaways
Significant Revenue Increase: US tariff revenue has increased substantially, with hundreds of billions collected, representing a 148% increase compared to the previous year, averaging $642 million per day.
Collection Process: Tariffs are primarily paid by importers, who file paperwork with US Customs and Border Protection. Importers then have 10 to 30 days to pay the tariffs after the goods arrive.
Passing Costs to Consumers: Importers may pass on tariff costs to consumers through various methods, such as increasing prices, raising the threshold for free shipping, or eliminating free shipping altogether.
Destination of Funds: Collected tariff revenue goes to the US Treasury's General Fund, and Congress decides how to appropriate these funds.
Potential Uses and Challenges: Proposed uses for the revenue include paying down national debt or replacing federal income tax. However, legal challenges question the president's authority to impose global tariffs, with ongoing court cases that could impact future revenue and potentially lead to refunds for importers.
