Trump Tariffs Generate $50B Customs Revenue Amid Limited Retaliation

President Donald Trump's aggressive tariff campaign, initiated in 2025 with duties as high as 50% on steel and aluminum and 25% on autos, has generated nearly $50 billion in additional U.S. customs revenue, reaching a record $64 billion in the second quarter alone. Despite initial retaliatory tariffs from only China and Canada, most global trading partners, including the European Union, have refrained from aggressive countermeasures, opting instead for negotiations and delay to avoid further escalation. The limited impact of foreign counter-tariffs contrasts sharply with the substantial revenue gains for the U.S., with China’s customs receipts rising only 1.9% and Canadian responses remaining modest. However, experts warn that Trump's tariffs function effectively as new taxes on American businesses and consumers, potentially wiping out benefits from the 2017 corporate tax cuts and increasing costs across supply chains. International brands like Apple and Mercedes are reportedly spreading tariff-related cost increases globally to minimize the hit on U.S. consumers. Meanwhile, Canadian companies face ongoing uncertainty from tariffs, leading to increased emphasis on restructuring and asset monetization strategies to manage financial risks amid the new trade environment.