Analysis by WorldTribune Staff, April 6, 2025 Real World News
The world, Big Tech, the Swamp, and Wall Street are going slightly bonkers following President Donald Trump’s tariffs announcement on April 2, or as Trump called it “Liberation Day.”
“Trump Aides Defend His Tariffs Amid Global Blowback”, The New York Times blared.
“Trump tariffs sow fears of trade wars, recession and a $2,300 iPhone”, Reuters moaned.
In the last year of the Biden-Harris regime, U.S. Customs and Border Protection collected $77 billion in tariffs, or 1.57% of total government income.
Before “Liberation Day,” roughly 70% of all products entering the U.S. were duty-free.
Conservative estimates put the yearly intake from Trump’s tariffs at a low end of $700 billion.
Historically, tariffs were the major source of government revenue. Between 1798 and 1913, they accounted for anywhere from 50% to 90% of federal income.
During the Civil War, the federal government introduced an income tax through the Revenue Act of 1861 to help finance war expenses. This tax was a flat rate of 3% on incomes above $800. That income tax was repealed in 1872 as unconstitutional, and the government returned to relying primarily on tariffs for revenue until the establishment of the modern income tax system in 1913 with the ratification of the Sixteenth Amendment that provided for a federal income tax system.
Income taxes good, tariffs bad? Not according to Donald J. Trump as decades of video interviews will bear out
Trump has also floated the idea of using tariff revenue to fund a U.S. sovereign wealth fund (SWF).
“For those unaware, SWFs are government-owned investment funds, typically built from trade surpluses, resource exports or public savings. They serve as long-term savings vehicles, investing in assets like stocks, bonds and infrastructure to benefit future generations. Unlike pension funds, which individuals tap into for personal needs, SWFs are designed to generate national wealth,” a U.S. Global Investors analysis in February noted.
Globally, SWFs hold just under $13 trillion in assets — more than exchange-traded funds (ETFs), private equity or hedge funds.
Under the U.S. Constitution, the power to tax and tariff falls to the legislative branch.
Article 1, Section 8 of the Constitution states, “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises,” as well as, “To regulate Commerce with foreign Nations.”
But Congress has enacted laws giving the president tariff powers. Courts have generally upheld that authority.
After the economic one-two-punch of the Great Depression and the Smoot-Hawley Tariff Act, Congress gave the president some leeway over tariffs.
There are now at least six federal statutes delegating some tariff authorities to the president, according to the Congressional Research Service.
Meanwhile, Trump’s approval rating has increased from 49% to 53%, according to a DailyMail.com/J.L. Partners survey that polled over 1,000 voters between March 31 and April 3.
The Daily Mail reported that Trump’s approval rating is up by 13 points for those aged 18 to 29 since March 7. Trump also saw a 6-point increase among Democrats as well as independent voters, according to the survey.
The survey also found that 39% of voters supported the increase of tariffs on all imported goods while 37% were in opposition while 24% were not sure.
Support Free Press Foundation
The American Free Press is Back!
Perspective: Until 112 years ago, tariffs — not taxes — funded the U.S. government added by Editor Two on April 6, 2025
View all posts by Editor Two →
Source link