Tariffs: How Much Is the US Really Making?

The US has been imposing tariffs on various countries, with China being a major target. The idea is to protect American industries from what President Trump calls "unfair trade. " However, the effectiveness and accuracy of these claims are up for debate. One of the big claims is that the US is making $2 billion a day from these tariffs. This figure has been widely circulated, but it's important to look at the facts. The truth is, the US does collect tariffs, but the daily amount is much lower than $2 billion. The actual figure is closer to $100 million a day, which is still a significant amount, but not as dramatic as the $2 billion claim. Another key point is the trade deficit with China. Trump often talks about a $1 trillion deficit, but the real number is much lower. In 2024, the US had a trade deficit of about $295 billion with China. This is a large amount, but it's far from the $1 trillion figure that has been thrown around. It's crucial to understand that a trade deficit means the US buys more from China than it sells to China. This is a common issue in global trade and not unique to the US-China relationship. Dairy products have also been a hot topic in the trade debate. Trump has claimed that Canada imposes extremely high tariffs on US dairy products, such as a 270% tariff on dairy powder. While it's true that Canada has high tariffs, they only apply after certain quotas are exceeded. In reality, most US dairy products enter Canada either duty-free or with very low tariffs. The US has never come close to exceeding these quotas, so the high tariffs rarely come into play. The US Department of Agriculture reported that the US exported $1. 14 billion worth of dairy products to Canada in 2024. Despite the high tariffs that exist on paper, the actual trade between the two countries is significant and mostly unaffected by these tariffs. The International Dairy Foods Association has supported challenging Canada's trade practices but has also warned that a tariff war could create uncertainty and additional costs for American dairy farmers. The EU has also been a target of Trump's trade rhetoric. He has claimed that the EU takes "no" cars from the US. This is an exaggeration. In reality, the EU does import cars from the US, but the numbers are relatively low compared to other markets. The EU's car market is highly regulated, which can make it difficult for US carmakers to compete. It's clear that the trade debate is complex and filled with misinformation. Understanding the facts is crucial for making informed decisions. The US does collect tariffs, but the amounts and impacts are often overstated. The trade deficit with China is real, but it's not as large as some claims suggest. And while high tariffs exist, they don't always come into play in the way they're often described.