Donald Trump’s policies could add twice as much to US debt as Kamala Harris’: study

China-targeted tariffs by former American president would lead to significant revenue loss plus ‘economic and geopolitical repercussions’

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Chinese carmaker BYD’s EV Dolphin Mini, among other mainland imports, could be subject to high tariffs if former US president Donald Trump wins election in November. Photo: Reuters

Published: 3:52am, 8 Oct 2024Updated: 11:54am, 8 Oct 2024

Former US president Donald Trump’s tariff plans, including additional duties on Chinese imports, could offset US$2.7 trillion of American debt in the next decade but could also trigger revenue loss with “geopolitical repercussions”, a study has found.

Trump’s fiscal proposals could add twice as much to the national debt compared to plans under US Vice-President Kamala Harris, according to a report by the Committee for a Responsible Federal Budget, a Washington-based non-profit group, on Monday.

Policies under the Republican standard-bearer, who has proposed further tax cuts for corporations and replacing individual income tax with tariffs, could add to the US budget deficit by up to US$15.15 trillion compared to US$8.1 trillion under his Democratic opponent’s plans, the non-partisan group said.

Trump has long advocated the idea of imposing high tariffs on US imports, arguing they could create jobs domestically and shrink the federal deficit.

Donald Trump speaks about America’s tax code and manufacturing in Savannah, Georgia, in September. Photo: AP

Since launching his 2024 bid for the White House, the former president has proposed a 10 or 20 per cent universal tariff on all imports as well as 60 per cent duties on Chinese goods.