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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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Democratic lawmakers reel after Senate votes to reopen government: ‘Republican-made health care crisis’

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Democratic lawmakers reel after Senate votes to reopen government: ‘Republican-made health care crisis’

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The Senate struck a late-Sunday deal to begin the path to reopening the government after eight Democrats joined Republicans to reach 60 votes, sparking backlash from those who opposed the spending bill.

Democratic leaders voiced intense opposition, arguing that the continuing resolution fails to address the nation’s worsening health care challenges. Several prominent lawmakers spoke out immediately following the vote, framing it as a test of priorities and moral leadership.

Rep. Ro Khanna, R-Calif., said Senate Majority Leader Chuck Schumer, D–N.Y., “is no longer effective and should be replaced.”

“If you can’t lead the fight to stop healthcare premiums from skyrocketing for Americans, what will you fight for?” Khanna asked.

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Schumer voted no on the procedural vote.

“America is in the midst of a Republican-made health care crisis — a crisis so severe, so urgent, and so devastating for American families that I cannot support a continuing resolution that fails to address it,” Schumer said.

SENATE DEMOCRATS CAVE, OPEN PATH TO REOPENING GOVERNMENT

Senate Minority Leader Chuck Schumer speaks during a press conference with members of the Senate Democratic Caucus in Washington, D.C., on Oct. 28. (Nathan Posner/Anadolu via Getty Images)

Schumer said that Democrats have continually pushed for meaningful reforms to the health care system.

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“For months and months, Democrats have been fighting to get the Senate to address the health care crisis,” he said. “This bill does nothing to ensure that the crisis is addressed. I am voting no, and I will keep fighting for months and months.”

Sen. Bernie Sanders, I–Vt., delivered a forceful rebuke, criticizing both Republicans and the eight Democrats who joined them in supporting the resolution.

“Tonight, eight Democrats voted with the Republicans to allow them to go forward on this continuing resolution. And to my mind, this was a very, very bad vote,” Sanders said. “What it does, first of all, is it raises healthcare premiums for over 20 million Americans by doubling, and in some cases tripling or quadrupling. People can’t afford that when we are already paying the highest prices in the world for healthcare.”

SANDERS CALLS OUT 8 SENATE DEMOCRATS FOR ‘VERY, VERY BAD VOTE’ ON GOVERNMENT FUNDING MEASURE

Sen. Bernie Sanders speaks at the No Kings Rally in Washington, D.C., on Oct. 18, 2025. (Fox News Digital/Emma Woodhead)

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He went on to warn of the broader consequences of the legislation.

“It paves the way for 15 million people to be thrown off of Medicaid. While care act studies show that will mean some 50,000 Americans will die every year unnecessarily. And all of that was done to give a trillion dollars in tax breaks to the 1%.”

Sanders links the vote to broader political trends and said it ignores the message voters have sent in recent elections.

Speaker of the House Mike Johnson is joined by Majority Leader Steve Scalise, Whip Tom Emmer, and Brian Steil for a press conference on the tenth day of a government shutdown on Oct. 10, 2025 in Washington, D.C. (Anna Rose Layden/Getty Images)

“As everybody knows, just on Tuesday, we had an election all over this country, and what the election showed is that the American people wanted us to stand up to Trumpism — to his war against working-class people, to his authoritarianism,” Sanders said. “That is what the American people wanted. But tonight, that is not what happened.”

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Despite his disappointment, Sanders vowed to continue pushing for expanded access to health care.

SCHUMER’S SHUTDOWN SCHEME EXPLAINED: DEMS DOUBLE DOWN ON OBAMACARE CREDITS AS STANDOFF DRAGS ON

Rep. Adam Schiff, D-Calif., also spoke out following the vote, sharing a video message on X alongside a seething assessment of the funding bill’s failure to address healthcare costs.

“Millions of Californians are at risk of losing their insurance or facing dramatically higher health care costs. Tonight’s vote does NOTHING to address this Republican health care crisis,” Schiff said.

In the video, Schiff recounts his “no” vote, calling the moment symbolic of the bleak outlook for health care reform under the current bill.

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“So, I just voted no on the Republican funding bill. I am outside the Capitol. It’s dark and raining, and that seems all too appropriate for this moment because that funding bill has nothing in it to help people afford their health insurance. That bill has nothing in it that’s going to bring costs down. That bill has nothing in it that’s going to make sure that people with pre-existing conditions can afford their health insurance,” Schiff said, in part.

He continued: “We owe our constituents better than this. We owe a resolution that makes it possible for them to afford their health care. [The] system [is] already badly broken enough. This just prevented it from getting worse.”

Schiff also joined Schumer in describing the shutdown and the vote on Sunday as a “Republican health care crisis.”

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Sen. Chris Murphy, D-Conn., posted a late-night video from his office, expressing deep frustration over the outcome and warning that the vote could embolden President Donald Trump.

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His caption read: “I got back to my office after the vote tonight and recorded this. There’s no way to sugarcoat what happened tonight. And my fear is that Trump gets stronger, not weaker, because of this acquiescence. I’m angry — like you. But I choose to keep fighting.”

Murphy also reflected on the vote’s implications for both democracy and health care, saying Democrats must continue to stand firm despite the political cost.

“The American people do not want Democrats to be bullied into submission. They want Democrats to fight for their healthcare. They want Democrats to fight Trump’s illegality,” the senator said, in part.

“I didn’t want this shutdown. I want it to end — but not at any cost. This shutdown hurt, it did — but unfortunately, I don’t think there is a way to save this country, to save our democracy, without there being some difficult, hard moments along the way.

…I’m angry about it. And I’m just gonna get up tomorrow and go to work to try to convince all of my colleagues that this is a unique moment — and the necessity to stand and fight, even when it’s hard, even when it involves pain, is necessary.”

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BBC leaders resign after the broadcaster’s editing of a Trump speech is called misleading

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BBC leaders resign after the broadcaster’s editing of a Trump speech is called misleading

BBC Director-General Tim Davie and BBC News Chief Executive Deborah Turness announced Sunday they are resigning from their positions.

The departures come as the British public broadcaster has faced criticism for its editing of President Trump’s Jan. 6, 2021, speech before the Capitol riot and insurrection.

The BBC investigative series “Panorama,” in a broadcast a week ahead of the U.S. presidential election last year, featured an edited video of Trump’s speech.

Critics said that the way the speech was edited was misleading in that it cut out a section in which Trump said that he expected his supporters would demonstrate peacefully.

“I know that everyone here will soon be marching over to the Capitol building to peacefully and patriotically make your voices heard,” Trump said in the speech, during which he also urged his supporters to “fight like hell.”

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In a statement, Turness acknowledged the controversy around the “Panorama” broadcast, noting, “In public life leaders need to be fully accountable, and that is why I am stepping down. While mistakes have been made, I want to be absolutely clear recent allegations that BBC News is institutionally biased are wrong.”

In a separate news release, Davie said, “In these increasingly polarized times, the BBC is of unique value and speaks to the very best of us. It helps make the UK a special place; overwhelmingly kind, tolerant and curious. Like all public organizations, the BBC is not perfect, and we must always be open, transparent and accountable.

“While not being the only reason, the current debate around BBC News has understandably contributed to my decision. Overall the BBC is delivering well, but there have been some mistakes made and as Director-General I have to take ultimate responsibility.”

Trump posted a link to a Daily Telegraph story about the speech-editing on his Truth Social network, thanking the newspaper “for exposing these Corrupt ‘Journalists.’ These are very dishonest people who tried to step on the scales of a Presidential Election.” He called that “a terrible thing for Democracy!”

White House Press Secretary Karoline Leavitt reacted on X, posting a screen grab of an article headlined “Trump goes to war with ‘fake news’ BBC” beside another about Davie’s resignation, with the words “shot” and “chaser.”

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Trump was impeached and criminally indicted over his role in the Jan. 6, 2021, riot and insurrection. The felony charges were dropped after he won the 2024 election, as U.S. Justice Department policy holds that a sitting president may not be criminally prosecuted.

Pressure on the broadcaster’s top executives has been growing since the Daily Telegraph newspaper published parts of a dossier complied by Michael Prescott, who had been hired to advise the BBC on standards and guidelines.

As well as the Trump edit, it criticized the BBC’s coverage of transgender issues and raised concerns of anti-Israel bias in the BBC’s Arabic service.

The 103-year-old BBC faces greater scrutiny than other broadcasters — and criticism from its commercial rivals — because of its status as a national institution funded through an annual license fee of $230 paid by all households with a television.

The BBC airs vast reams of entertainment and sports programming across multiple television and radio stations and online platforms — but it’s the BBC’s news output that is most often under scrutiny.

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The broadcaster is bound by the terms of its charter to be impartial in its output, and critics are quick to point out when they think it has failed. It’s frequently a political football, with conservatives seeing a leftist slant in its news output and some liberals accusing it of having a conservative bias.

It has also been criticized from all angles over its coverage of the Israel-Hamas war in Gaza. In February, the BBC removed a documentary about Gaza from its streaming service after it emerged that the child narrator was the son of an official in the Hamas-led government.

The BBC shakeup comes as Trump has been extremely aggressive in pursuing lawsuits against U.S. media companies. Paramount Global forked over $16 million this summer after Trump complained about the editing of a Kamala Harris interview on CBS’ “60 minutes.” Last year, ABC News paid $16 million to settle Trump’s defamation lawsuit against anchor George Stephanopoulos.

The Associated Press contributed to this report.

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Final hurdles cleared to deport Abrego Garcia to Liberia, Trump admin says

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Final hurdles cleared to deport Abrego Garcia to Liberia, Trump admin says

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President Donald Trump’s administration called on a federal judge to approve the deportation of Kilmar Abrego Garcia to Liberia on Friday, arguing all legal hurdles had been cleared.

The Friday filing is the latest in the administration’s efforts to deport Abrego Garcia a second time following his return from El Salvador earlier this year. The Justice Department called on U.S. District Court Judge Paula Xinis to clear the deportation, saying Abrego Garcia had failed to establish that he would face persecution in Liberia.

“Petitioner’s claims are procedurally barred multiple times over and fail on the merits in any event,” the DOJ argued. “This Court should therefore dissolve its preliminary injunction and permit the government to remove Petitioner to Liberia.”

Attorneys for the U.S. also said Liberia has made “sufficient and credible” arguments that Abrego Garcia will not face harm.

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DHS TO SOON DEPORT ABREGO GARCIA TO AFRICAN NATION AFTER ILLEGAL ALIEN’S RETURN FROM EL SALVADOR, FILING SAYS

Kilmar Abrego Garcia is facing deportation to Liberia. ( Anna Moneymaker/Getty Images)

Nevertheless, lawyers for Abrego Garcia argue that he has not received sufficient due process to justify his deportation.

“The Government insists that the unreasoned determination of a single immigration officer—who concluded that Abrego Garcia failed to establish that it is ‘more likely than not’ that he will be persecuted or tortured in Liberia— satisfies due process. It does not,” his attorneys wrote in their own Friday filing.

His attorneys further argue that Abrego Garcia is the victim of retaliatory prosecution, noting that Costa Rica has already offered to accept his deportation flight on a refugee status. The U.S. said it would not send him to Costa Rica unless he agreed to plead guilty to human trafficking charges.

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ABREGO GARCIA RELEASED FROM JAIL, WILL RETURN TO MARYLAND TO AWAIT TRIAL

Lawyers for Abrego Garcia argue he is facing retaliation from the U.S. government. (Anna Moneymaker/Getty Images)

“The timeline suggests a pattern: when the Government received orders it disliked in Abrego Garcia’s civil case challenging his unlawful removal to El Salvador; it initiated a criminal prosecution in retaliation; and when it received orders it disliked in Abrego Garcia’s criminal case, it initiated third-country removal efforts in retaliation,” the attorneys argued.

Department of Homeland Security Secretary Kristi Noem blamed “activist” judges for the release of Kilmar Abrego Garcia earlier this year. (AP Photo/Mark Schiefelbein/AP Photo/George Walker IV, File)

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Earlier in the case, Abrego Garcia’s attorneys cited more than 20 countries he allegedly fears would persecute or torture him if he were removed there. Liberia was not among those listed.

“Liberia is a thriving democracy and one of the United States’ closest partners on the African continent,” the DOJ argued in October.

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