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Trump Tariffs To 'Plug The Hole' For Income Tax Cuts To Come: Economists Predict What More Could Be Expected

After President Donald Trump unveiled the tariffs on all its trading partners on Wednesday, this economist recalled his analysis of tariffs being used to fund tax cuts. Meanwhile, another senior economist highlighted other possible implications of the tariff announcements.

What Happened: Craig Shapiro, a macro strategist at the Bear Traps Report, reaffirmed his analysis by referring to Trump as the "Tariff man," and explained how sweeping tariffs on the U.S. trading partners were announced as he had "predicted," back in February.

"Tariffs plug the hole in the deficit to allow income tax cuts to come," he said in an X post.

Shapiro, in his old analysis, had argued that Trump’s deficit reduction goal, from 6-7% to 3% of GDP, necessitates tariffs. With entitlement and defense cuts off the table, he contended that tariffs are the only way to fund tax cuts without increasing the deficit.

While many believed that Trump could have backed down on tariffs, Shapiro reiterated that the underlying "math suggests he has no other choice but to use them."

Shapiro also said that tariffs seek to bring back manufacturing and secure domestic production of critical defense ...

https://www.benzinga.com/25/04/44624245/tariffs-to-plug-the-hole-for-income-tax-cuts-to-come-economists-predict-what-more-could-be-expected