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Trump commerce adviser Peter Navarro mentioned, in keeping with an X put up from Jeff Stein of The Washington Publish that Trump is planning on imposing $600 billion value of tariffs per yr for ten years:
White Home aide Peter Navarro right now: Trump’s tariffs will increase $600 billion per yr, or $6 trillion over a ten yr interval Appears to mirror our reporting that Trump desires to go completely huge on the tariffs, no matter short-term financial penalties
Video of Navarro:
To place this into context, Trump’s proposed tariffs could be 2.2% of GDP.
Here’s a chart from The Tax Foundation of the biggest tax will increase as a share of GDP in US historical past:
1941 falls within the line as a result of that’s the yr that Pearl Harbor was attacked and the US entered World Conflict II, however the world was at struggle in 1941.
The opposite tax will increase in 1950 and 1951 had been throughout the Korean Conflict, and 1943 was World Conflict II.
The biggest peacetime tax improve in US historical past was 1968, and Trump tariffs are double that as a share of GDP.
The Center For Economic And Policy Research famous that Republicans misplaced their minds when Invoice Clinton and Barack Obama oversaw a lot smaller tax will increase, “By comparability, the tax hike that Invoice Clinton pushed by way of in 1993, totally on high-end taxpayers, got here to 0.66 p.c of GDP. The tax improve that President Obama pushed by way of in 2010 to cowl the projected value of Obamacare got here to 0.43 p.c of GDP.”
The Obama and Clinton tax will increase had been about one-fifth and one-third as large as what Trump desires to do with tariffs.
