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Trump wants to go on a spending spree with tariff money, but can he?

by UCapital MediaUCapital News newsroom1 min read
Trump wants to go on a spending spree with tariff money, but can he?

As Trump's tariff policy is being scrutinized by the courts, the President has proposed a 2.000$ check for all Americans that have a yearly income below 100.000$. The measure is calculated to cost approximately 450 billion dollars, much more than the estimated tariff revenue of 2026. If the Supreme Court decides against the tariffs, the Trump admin is going to have to pay back 90 billion dollars to affected American businesses and is going to face unprecedented fiscal and logistical pressure. Some observers even compared the potential effects to a new "1929 crisis".


Trump's plan to use the tariff money to massively cut income tax and write huge welfare checks to lower-middle class Americans is not sitting right with several GOP lawmakers, who have been urging the President to use the money to reduce debth and are even willing to stand up to his proposal if necessary.


Trump's support is getting lower and lower according to multiple polls and it's clear that American taxpayers are tired of rising prices and lack of clear economic goals. The President's lack of economic ideology and his willingness to change course have been big reasons for his continued popularity, but is his obsession with retribution and conflict even regarding allies getting too much to bear even for his supporters? The answer seems to be getting to a resounding yes more every day.


Klevis Gjoka

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DISCLOSURE

UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.

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