Tariff Whiplash Clouds Federal Budget Outlook

President Trump’s economic agenda has injected new volatility into the federal budget after the Supreme Court struck down many of his tariffs, a decision that left what officials described as roughly a trillion-dollar hole — money Mr. Trump said he could replace with other levies.

Mr. Trump reshaped the fiscal picture by enacting an expensive income tax cut and an expansive set of tariffs. The tariffs shifted a larger tax burden onto low-income Americans but also helped plug the budget gap; the court’s ruling removes much of that revenue and it is unclear whether the president can fully replace it.

He proposed new levies, including a 10 percent across-the-board tariff, arguing, “The end result is going to get us more money.” Tariff receipts nearly tripled last year, and before the ruling the measures were expected to raise roughly $3 trillion over the next nine years.

United States

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