The president of the United States, Donald Trump is often seen mentioning the money that the country is making because of the heavy tariffs that the administration of the United States has imposed the global trading partners.

But the truth herein is that most of the money that America is generating is coming from its own wallet rather than being an income to the country.

This Wednesday, at a news conference, post-selection, President Trump claimed that America would soon be at the receiving end of billions of dollars from the taxes which it will receive as a result of the tariffs that it has imposed in China.

Source: zodfa

Trump stated that a huge amount of money will be pouring into the Treasury of the United States from the taxes paid by China due to the tariffs imposed to it. The claim however was misleading and not the reality.

President Trump was correct in stating that America will be receiving billions of dollars as the federal revenue generated from the tariffs for the third quarter of the current fiscal year has witnessed an increase by more than 33 percent when compared with the same quarter of the previous year.

The increase in the Federal Revenue was ascertained by the data shown by the Treasury Department.

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For the month of October, which will be the first complete month since the imposition of tariffs was in effect, the collection of revenue calculated on a monthly basis seems to have doubled from  the previous year. The increase is levelled at about $6 billion.

But after digging deep into the theory, one will find that the tariffs imposed were paid more often by the citizens of America.


The operation of tariffs is similar to any other tax and they too follow the same chain like other tariffs. This means that the cost associated with these tariffs can pass via various supply chains thereby affecting those who are not even directly involved upon whom the tariff is imposed.

Source: BusinessInsider, ConsultantInsider