In September the U.S. Collected a Record $7 Billion in Import Tariffs
In September, tariff revenue jumped 9% as the U.S. collected $7 billion in import tariffs as the new penalties on apparel, tools, electronics and other consumer goods from China kicked in. The data is based on an analysis of official Commerce Department records ompiled by Trade Partnership, an economic consulting firm. The tariffs are assessed directly to importers in the U.S.
The sharp rise was driven by a new 15% levy on consumer goods that went into effect Sept. 1. Imports of these items were valued at $111 billion last year, according to an analysis by The Wall Street Journal.
The rising cost of the tariffs has increased pressure from business groups to resolve the trade dispute.
“It’s a massive expansion of taxation on American employers and consumers,” said Peter Bragdon, chief administrative officer of Columbia Sportswear Co.
More than $5 billion was collected on imports from China during the month, with tariffs assessed to the rest of the world garnering about $2 billion. In the 12 months leading to September the U.S. brought in more than $70 billion in tariffs (double the amount prior to the trade war). The trade war is not all revenue it cas cost the US government too. To help mitigate the losses to U.S. agricultural exporters the Agriculture Department has authorized $28 billion in payouts to farmers.
The figures only account for the direct burden of the tariffs, said Dan Anthony, vice president of the Trade Partnership.
“This is very much the low-end estimate of costs, because there’s also costs associated with shifting suppliers, shifting to higher-cost sources, that aren’t going to show up in the data,” said Mr. Anthony.