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Estimates Imply That Tariffs Could Fall Heavily on Consumers

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Estimates Imply That Tariffs Could Fall Heavily on Consumers

President Trump has said that his aim in imposing tariffs is to force companies to move production back to the United States. If manufacturers make their goods in America, he argues, they won’t have to pay the tariffs.

But the latest revenue projections proffered by his administration call into question what Mr. Trump wants to achieve with the tariffs he is imposing on both allies and adversaries.

Peter Navarro, a senior trade adviser to Mr. Trump, told Fox News on Sunday that the sweeping tariffs the president was imposing would raise about $6 trillion over the next decade, with those revenues going toward funding “the biggest tax cut in American history for the middle class.”

While he insisted that Americans would not bear the cost, those estimates imply that the burden of tariffs could fall heavily on consumers, rather than encouraging companies to reshore supply chains.

Trade experts have argued that using tariffs to raise revenue directly contradicts the goal of using tariffs to bring factories back to the United States. In order for the government to take in so much revenue, Americans would need to continue buying substantial amounts of imported products.

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Mr. Navarro said the administration would also lower costs for Americans by bringing down gas prices. Trump officials have said that would be accomplished by drilling for more oil in the United States.

“Tariffs are tax cuts, tariffs are jobs, tariffs are national security,” Mr. Navarro said. “Tariffs are great for America.”

Mr. Trump is expected to introduce global tariffs on other countries this week, and has also repeatedly talked about replacing taxes with tariffs. But the U.S. government raises about $2 trillion from individual and corporate income taxes. In 2024, the United States imported $4 trillion of products, meaning tariffs would have to be extremely high to replace tax revenue.

Calculations by economists at the Peterson Institute for International Economics suggested that tariff revenue could peak at about $780 billion annually with a 50 percent tariff on all imports. After that, the amount of revenue would shrink. That’s because when tariffs reach a certain level, consumers tend to stop buying imported products, meaning the revenue they generate decreases.

The Yale Budget Lab estimated that the auto tariffs scheduled to go into effect on Thursday could raise $600 billion to $650 billion between 2026 and 2035. But those prices would fall heavily on consumers. U.S. vehicle prices would rise by 13.5 percent on average, the equivalent of an additional $6,400 for the price of an average new 2024 car. Every American household would pay an extra $500 to $600 as a result of the tariffs, the group estimated.

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Mr. Trump campaigned on reducing inflation that plagued the United States and other countries during the Biden administration.

Mr. Navarro said that tariffs had led to price stability and prosperity in Trump’s first term and would again. “Trust in Trump,” he said.

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Video: Reflecting Pool Turns Green, Paint Peels After Renovation

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Video: Reflecting Pool Turns Green, Paint Peels After Renovation

new video loaded: Reflecting Pool Turns Green, Paint Peels After Renovation

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Reflecting Pool Turns Green, Paint Peels After Renovation

Algae blooms have hit the Lincoln Memorial Reflecting Pool, which underwent a $14.2 million repair project. Blue paint appeared to be chipping from the bottom.

“The reflecting pool is greener than I have ever seen it before due to algae.” “I was expecting to see blue, but green is O.K.” “Honestly, I don’t think you can fight mother nature.”

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Algae blooms have hit the Lincoln Memorial Reflecting Pool, which underwent a $14.2 million repair project. Blue paint appeared to be chipping from the bottom.

By Julie Yoon, Jackeline Luna and Alisa Shodiyev Kaff

June 19, 2026

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Top GOP lawmaker rallies around conservative school board member facing calls to resign

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Top GOP lawmaker rallies around conservative school board member facing calls to resign

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House GOP Conference Chairwoman Lisa McClain, R-Mich., rebuked a school board in Richmond, Michigan, after some of its members tried to remove a conservative colleague for missing meetings while on military deployment to the Middle East.

Ray Stier, who received an American flag and a copy of the Congressional Record from McClain on Thursday as a commendation of his work, had been on deployment, attending board meetings remotely, but eventually lost virtual access.

That’s when the board called for his removal, citing a “disservice” caused by his absence.

“One of the board members’ family was taking to social media and putting out misinformation about myself and my wife and things that were not factually accurate and then ultimately calling for my resignation and prompting others to reach out to the district to call for my recall,” Stier recounted.

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PARENTS SAY THEY’RE RUNNING FOR LOCAL SCHOOL BOARDS TO FIGHT ‘POISONOUS’ CRITICAL RACE THEORY

House GOP Conference Chairwoman Lisa McClain, R-Mich., left, pictured alongside Ray Stier, a school board member in Richmond, Michigan. (Andrew Harnik/Getty Images; office of Lisa McClain)

The moment is just the most recent clash between Republicans and school boards over policies that, in their view, are gatekeeping schools against diversity of thought and accountability.

“I think education is extremely important and vital,” McClain told Fox News Digital.

“And educators and administrators need to teach children how to think, not what to think. It’s about time that administrators begin to get held accountable for their actions. Good actions and bad actions.”

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McClain’s meeting with Stier comes on the heels of a congressional hearing last week where she grilled a superintendent from Virginia over student privacy policy, probing if those policies were being unevenly applied to favor transgender students.

VIRGINIA SCHOOL DISTRICT SLAPPED WITH COMPLAINT ALLEGING NEW CLAIMS IN VIRAL TRANS LOCKER ROOM FIGHT

Rep. Lisa McClain, R-Mich., leaves a House Republican Conference meeting at the Capitol Hill Club on Feb. 28, 2023. (Tom Williams/ CQ Roll Call via Getty Images)

“The victims got a 10-day suspension and the biological female that did the filming got a one-day suspension,” McClain said, referring to an incident at Stone Bridge High School in Loudoun County where students had been reprimanded for filming in a locker room.

“How does that make sense?”

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In Stier’s case, McClain questioned whether the board had targeted Stier on account of just his deployment overseas. Stierhad clashed with the board after learning that some of the district’s bathroom policies would have allowed fourth-grade students to use the same bathroom as transgender eighth-grade boys.

“Prior to him filling the seat, the seat was open for two months,” McClain observed. So that logical argument doesn’t exactly make sense to me; it doesn’t really hold a lot of water.”

MICHIGAN PARENT WANTS TRUMP TO ACT AFTER DAUGHTER SHARES LOCKER ROOM WITH TRANS-ATHLETE

House GOP Conference Chairwoman Lisa McClain, R-Mich., left, pictured alongside Richmond, Michigan school board member Ray Stier right. (Office of Lisa McClain)

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For his own part, Stier believes his case will refocus attention on the importance of the school board and its membership.

“My goal is to continue being an advocate for the community. One of the good things that I think came out of this was that it got so much attention that some of the community members who were unaware of the dynamics that were not being brought to light,” Stier said.  

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Political watchdog fines Newsom for failing to report $5.5M in solicited donations on time

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Political watchdog fines Newsom for failing to report .5M in solicited donations on time

California’s political watchdog commission on Thursday finalized a $31,500 fine against Gov. Gavin Newsom, alleging that the Democratic leader failed to report three dozen behested payments totaling $5.5 million mostly to support wildfire recovery by the deadline under state law.

The Political Reform Act requires elected officials to disclose payments of $5,000 or more that they solicit or direct others to give to a charitable, legislative or governmental purpose within 30 days.

The California Fair Political Practices Commission said 34 of the violations were for failing to report on time that Newsom and his staff directed outreach from companies and foundations that wanted to help after the Los Angeles wildfires to the California Fire Foundation. The nonprofit was started in 1987 by the California Professional Firefighters to support the families of fallen firefighters and communities impacted by fire.

The donations include $1 million from the Chuck Lorre Foundation and $500,000 apiece from Lockheed Martin, the Anthem Blue Cross Foundation and BlackRock, among others gifts.

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The governor also failed in 2024 to report on time two behested payments, totaling $100,000 from the Schmidt Family Foundation and Schwab Charitable Funds to the Institute for Local Government, a nonprofit within the League of California Cities.

The commission said the governor reported all of the payments “prior to public discovery” or contact from its enforcement division, which it considered a mitigating factor. Newsom also signed the stipulation and agreed to the fine.

Tara Gallegos, a spokesperson for Newsom’s office, said the issue involved late paperwork at a time when the governor’s staff was focused on emergency response and supporting survivors. She also underscored the fact that the reports were filed before he was contact by the FPPC.

Gallegos said the fine is unrelated to an alleged investigation into the governor and his wife by the Department of Justice, which Newsom announced this week.

Newsom alleged Monday that Trump is using the government as a political weapon to target him and his wife, Jennifer Siebel Newsom. Newsom announced the investigation after he learned that the FBI and Internal Revenue Service asked his associates questions about nonprofits and businesses related to the couple.

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The governor’s office characterized the investigation as a fishing expedition. The Trump administration declined to comment.

A source familiar with the matter, who requested anonymity because they were not authorized to discuss it publicly, said two federal probes have been going on for about a year, and that they originated not from Washington, D.C., but from conversations between whistleblowers and federal prosecutors based in Sacramento. The probes are linked to Newsom’s former chief-of-staff, Dana Williamson, and Siebel Newsom’s taxes, the source said.

The FPPC violations mark the second time Newsom has reported payments late, which increased his penalty for the new infractions. The commission fined Newsom in 2024 for failing to timely report 18 payments totaling $14.4 million.

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