"Staggering U.S. Tariffs Begin as Trump Widens Trade War" --NYTime

The duties, which the president announced last week, took effect for about 90 countries just after midnight.

Trump: "We're taking in trillions, not billions, trillions and trillions of dollars from other countries … Now they're paying a lot of money and they're paying hundreds of billions of dollars… But I think there's also a possibility that we're taking in so much money that we may very well make a dividend to the people of America."

"No. Trump's claims of trillions in tariff revenue are exaggerated; actual US collections are in the tens of billions annually, paid by importers, not foreign governments directly. No individual country pays hundreds of billions. A public dividend remains a speculative proposal, not reality."

Source: US Treasury, Tax Foundation.

We, the consumers, are paying for Trump's tariffs.

 

"When the U.S. imposes tariffs, such as those implemented by the Trump administration, it's typically the importer of the goods (often an American company) who directly pays the tariff to the U.S. Treasury. 

However, the economic burden of these tariffs can be distributed in various ways: 

U.S. businesses: Importers may choose to absorb some or all of the tariff cost, impacting their profits. 

Foreign businesses: Foreign exporters might lower their prices to offset the tariff and maintain competitiveness in the U.S. market. 

U.S. consumers: Importers may pass on the increased cost of tariffs to consumers through higher prices for goods. 

 While President Trump has often stated that tariffs are paid by foreign countries, economists generally agree that the costs are largely borne by businesses and consumers within the country imposing the tariffs. 

Recent studies on the Trump administration's tariffs suggest that the burden has fallen almost entirely on U.S. firms or final consumers."

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Broader Economic Impacts

• Inflationary Pressures: Economists at Yale's Budget Lab calculate that the tariffs will have an inflationary effect, costing the typical household an average of up to $2,400 this year.
• Potential for Slower Economic Growth: The tariffs are seen as a potential drag on overall economic growth, with some forecasts predicting a long-term reduction in US GDP.
• Impact on Employment: Reports indicate that hiring has stalled and job losses have occurred in some sectors, though the overall employment impact is complex and still unfolding.