U.S. economists are raising an eyebrow at President Donald Trump’s plan to slash America’s $37 trillion national debt with higher tariffs. While new levies could generate billions in revenue, experts say the impact on overall debt is minimal.
Joao Gomes, a finance professor at Wharton, tells us that tariff income might offset a slice of the projected $3 trillion increase from the “One Big, Beautiful Bill Act” by 2030. “It’s helpful, but not enough to move the needle,” he explains.
Desmond Lachman of the American Enterprise Institute calls the president’s $300 billion target “a drop in the ocean.” He warns that framing tariffs as a debt-busting tool may win political points, but markets “aren’t dumb—they see the numbers and know it doesn’t add up.”
Data back the skepticism. In July, the U.S. Treasury reported $60.95 billion in debt interest payments, while tariff revenues totaled just $29.6 billion. That gap means revenues barely cover interest, let alone reduce the principal.
For global citizens tracking economic trends, this is a reminder that trade policies can reshape markets, but they’re not a silver bullet for systemic challenges like ballooning debt. As the trade debate continues, entrepreneurs, investors, and students will be watching the numbers—and the narratives—very closely.
Reference(s):
Economists say Trump tariffs won't significantly reduce U.S. debt
cgtn.com
