The high tariffs of the Donald Trump administration brought significant revenue to the federal government, raising the prospect that a government burdened with liability could become reliant on tariff revenue.
According to The New York Times (NYT) on the 3rd (local time), tariff revenue in the U.S., including some sales taxes, from January to July this year was $152 billion (approximately 211 trillion won), nearly doubling from $78 billion in the same period last year.
If the current tariffs are maintained, the federal government is estimated to gain over $2 trillion (approximately 2,780 trillion won) in additional tariff revenue over the next decade.
Most economists argue that tariffs, which reduce economic efficiency and place a heavy burden on low-income groups, should be repealed; however, some noted that it might be difficult for the government to forgo tariff revenue.
João Gomes, an economist at the Wharton School of the University of Pennsylvania, said, "I think this is addictive," adding, "In a situation of current liability and deficits, I think it's very difficult to reject a source of revenue."
The imposition of these tariffs was a decision of the Trump administration, but it has been evaluated that a new regime may find it burdensome to seek congressional cooperation for other types of tax increases needed to replace the tariffs.
Especially if the Democratic Party regains power, there could be a possibility of trying to fund new social welfare programs through tariff revenue.
NYT analyzed, "In a situation where new taxes are too difficult, maintaining existing tariffs could be a politically easier choice than trying to change trade policy."