Trump Tariffs Drive Record Federal Revenue at Household Expense
U.S. tariff revenue surged to $28 billion in December 2024, a 300% year-over-year spike, following $31 billion monthly collections in October and November. The second-half 2024 average of $30 billion monthly suggests annualized revenue could reach $360 billion by 2026—a 36% increase from current levels. This fiscal shift coincides with President Trump's 2024 return to office and aggressive use of trade mechanisms like the International Emergency Economic Powers Act.
New tariffs targeting China, Canada, Mexico, and the EU now impose a 15.8% average rate on all U.S. imports, with an effective rate of 11.2% after consumer behavior adjustments—the highest since WWII. Households face $1,100 in additional annual costs for 2025, escalating to $1,500 in 2026. Even potential judicial reversals WOULD leave $300-$400 in persistent burdens, excluding downstream price inflation across retail sectors.
