“Tariffs are creating GREAT WEALTH, and unprecedented National Security for the USA,” said President Donald Trump in a Saturday Truth Social post. So, why are Americans still feeling down about the economy?
A few hours before Trump posted, The Washington Post published an article that said bankruptcies have soared as Trump has initiated a slew of new tariffs this year. For example, Audacy recently covered the bankruptcy of Roomba maker iRobot, a company that cited tariffs as one of the reasons for the move.
“Corporate bankruptcies surged in 2025, rivaling levels not seen since the immediate aftermath of the Great Recession, as import-dependent businesses absorbed the highest tariffs in decades,” said The Washington Post.
Tariffs have also impacted dedicated Trump supporters in rural areas, POLTICO reported Saturday.
“Farmers and businesses experienced whiplash as tariff deadlines came and went, confusing people throughout the food supply chain about how they would be impacted,” the outlet explained. “Fertilizer and fuel costs rose and markets for exports like soybeans dried up. Some groups, including cattle ranchers who have long allied with Trump, publicly broke with the president’s trade agenda when he suggested importing Argentinian beef to lower food prices.”
While the Associated Press noted Friday that Trump’s tariff policies have “disrupted global commerce and strained the budgets of consumers and businesses worldwide,” it also noted that they have raised tens of billions of dollars for the U.S. Treasury. That leaves this question: will Americans actually feel the benefit of this revenue eventually?
Trump said in his Saturday post that the tariffs have cut the U.S. trade deficit by 60%. Per the AP, he has argued that the tariffs will also help bring manufacturing back the U.S., but that connection is complicated. Earlier this year, Willy Shih, professor of management practice at Harvard Business School, explained during an interview with Audacy that in some industries, there would need to be significant time and money investments in the U.S. to get new manufacturing up and running.
In the meantime, the disruption linked to the new tariffs policies has resulted in high prices for American consumers. Although Trump said “No inflation!!!” in his Saturday post, the latest Consumer Price Index report from the Bureau of Labor Statistics showed that inflation increased 2.7% in the 12-month period ending in November. That comes after a period of record inflation in the wake of the COVID-19 pandemic.
Going into the new year, it doesn’t look like prices increases are behind us. CNBC reported this week that analysts warn leather goods prices could climb another roughly 22% over the next two years,” due in part to tariffs.
Now, for those billions in tariff revenue. According to the AP, they “still account for just a fraction of the federal government’s total revenue,” and there isn’t enough raised to “justify the president’s claim that tariff revenue could replace federal income taxes – or allow for windfall dividend checks for Americans.”
Trump has floated the idea of sending Americans $2,000 dividend checks, but USA Today noted this week that those checks are not guaranteed. It also said that Congress would likely need to pass legislation allowing for the checks to go out and that some experts believe the move would not be wise.
An analysis published by the Tax Foundation this month said tariffs are estimated to raise $2.1 trillion on a conventional basis and $1.6 trillion on a dynamic basis from 2025 through 2034. Scott Lincicome, The Cato Institute vice president of general economics, told CNBC this week that tariffs are resulting in higher prices for consumers and that they are a “drag” for businesses. He also said the new tariffs and Trump trade deals have posted challenges for those in tariffs compliance since they are constantly changing.