Collections from customs and certain excise taxes spiked by $6.5 billion, or by 37.5%, in May from April, to $24.0 billion, nearly triple the average monthly collections in 2024 ($8.2 billion), according to the Treasury Department’s daily data today.
Tariffs are taxes paid by businesses – some of the biggest of which pay little nor no income taxes in the US. Total corporate income tax receipts amounted to only $507 billion in 2024, or about 12.5% of the $4.1 trillion in pre-tax corporate profits, according to data from the Bureau of Economic Analysis. And an additional $190 billion in tariffs per year would be an increase of 37% of the taxes paid by corporations.
Let's monitor how this particular aspect goes:
But passing them on to consumers will be tougher because consumers have woken up, and they hate, hate, hate higher prices, and they have had it, and companies have had to cut many goods prices in 2023 and 2024 to prevent losing sales.