Tariffs Emerge as a Fiscal Blind Spot in GOP Budget Debate
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The Republican majorities in the US Congress are embroiled in a vigorous debate over the fiscal future of the world’s largest economy. But it’s a discussion that’s curiously avoiding one of the most consequential acts of fiscal policy the US has carried out in many years: Yes, the Trump tariffs.
As Moody’s Ratings demonstrated when it dropped the US’s last remaining AAA sovereign rating on Friday, the country’s fiscal picture is not looking great. This is a moment for difficult decisions. It demands a full accounting of revenues and outlays and a plan for a path forward.