Trump tariffs lifted revenue but barely moved US GDP in 2025: Study

The sweeping tariff measures imposed under Donald Trump in 2025 had only a marginal impact on overall US economic output, while significantly boosting federal revenues and accelerating the decoupling of trade ties with China, according to an academic study. The paper, published by the Brookings Institution, estimates that the net effect of the tariffs on US gross domestic product ranged from a modest gain of 0.1 per cent to a contraction of 0.13 per cent, depending on assumptions around trade flows and domestic substitution. Revenue gains offset consumer costs The study, authored by Pablo Fajgelbaum and Amit Khandelwal, said that…