Trump’s tariffs could pay for his tax cuts — but it likely wouldn’t be much of a bargain
June 7, 2025
The tax cuts in President Donald Trump’s One Big Beautiful Bill would likely gouge a $2.4 trillion hole in the federal budget. The president has a patch handy, though. His sweeping levies on imports – the tariffs that have disrupted world trade, shaken financial markets and created uncertainty for businesses – would probably plug the gap, raising enough money to pay for all or most of his income and business tax cuts. That’s the budget math anyway. Actually using import taxes – tariffs – to finance a big chunk of the federal government would be a painful and perilous undertaking, budget wonks say.