Trending Now - Trump Proposes New Tariffs to Address $1.6 Trillion Revenue Gap
WHO:
President Trump, U.S. Trade Representative Jamieson Greer, Elena Patel (co-director of the Urban-Brookings Tax Policy Center), Erica York (vice president of federal tax policy at the Tax Foundation), Kent Smetters (executive director of the Penn Wharton Budget Model)
The Trump administration, the Supreme Court, affected U.S. industries, U.S. companies
WHAT:
The Trump administration is seeking to replace approximately $1.6 trillion in lost tariff revenue.
The Supreme Court's ruling on February 20, 2026, struck down a range of President Trump's import taxes.
Trump imposed a 10% tariff on all imports after the Supreme Court's ruling, which can last for 150 days.
Trump has indicated he may raise the tariff to 15%, the maximum allowed.
The Congressional Budget Office estimates that Trump's tax cut legislation will add $4.7 trillion to the national debt over a decade.
Trump's tariffs, including those not struck down by the court, were projected to offset about $3 trillion of that cost.
The Tax Foundation estimates that existing tariffs should yield about $668 billion over the next decade.
WHERE:
Washington, D.C., United States
Investigations will cover economies including the European Union, China, South Korea, Japan, Mexico, Canada, Australia, and Brazil.
WHEN:
The Supreme Court ruling occurred on February 20, 2026.
A hearing for the factory capacity investigation is scheduled for May 5, 2026.
A hearing for the forced labor investigation is scheduled for April 28, 2026.
WHY:
The Trump administration aims to recover lost revenue to help offset the cost of tax cuts.
Tariffs are seen as a way to force foreign countries to contribute to U.S. government services.
HOW:
The administration will conduct investigations under Section 301 of the 1974 Trade Act, which requires consultation with targeted countries and public hearings.
The investigations will assess whether foreign governments are subsidizing excessive factory capacity and whether they are failing to ban goods made by forced labor.
(UPDATED March 14, 2026 17:10 UTC)
Today, President Trump announced his administration's plan to replace approximately $1.6 trillion in lost tariff revenue following the Supreme Court's ruling on February 20 that struck down several of his import taxes. In response, Trump has imposed a 10% tariff on all imports, which could last for 150 days, and he has indicated the possibility of raising it to the maximum allowed rate of 15%. The administration will conduct investigations into foreign economies, including those of the European Union and China, to determine if they are subsidizing excessive factory capacity or allowing goods made by forced labor, with hearings scheduled for late April and early May.