Evaluating the Fiscal and Distributional Implications of Tariffs

The Trump administration has enacted a series of significant taxes on imports, including an across-the-board tariff on nearly all imports. Tariffs are now expected to raise nearly 1 percent of GDP in revenue. Given tariffs' growing importance as a source of revenue, it is important to understand their implications for federal finances and the wellbeing of households. This paper describes and reviews current revenue and distributional analyses of tariffs.