Costs of Tariffs Mount for U.S. Companies

American companies that import products are paying record amounts in customs duties as more tariffs imposed by the Trump administration take effect. Tariff collections topped $5 billion in October, according to data from the Treasury Department and from Census Bureau data analyzed and released by Tariffs Hurt the Heartland, a lobbying coalition of manufacturing, farming and technology groups.

U.S. revenue from tariffs has begun to build rapidly only in the last few months, as more of the levies have taken effect. In October, more than 2 percent of federal receipts came from tariffs, the most in at least two decades.

The amount of tariffs being paid by U.S. importers has doubled since May, including an increase of more than 30 percent from August to October, according to the data. The sum has risen through the year as steel and aluminum tariffs were applied to imports from a growing number of countries, then surged in October, which was the first full month in which U.S. tariffs were in place on a full $250 billion of imports from China.

China and the U.S. struck a trade truce Dec. 1, agreeing not to add or increase tariffs for now. But the tariff rates in place in October will remain in effect, meaning collections are likely to remain high in November and December.

President Trump has touted the surge in revenue his tariffs have brought in thus far. “We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN,” he said in a recent tweet.

The Census Bureau data are based off customs filings, while the Treasury data are based off actual payments.

Source: Wall Street Journal