[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Neil Sethi [@neilksethi](/creator/twitter/neilksethi) on x 12.7K followers Created: 2025-04-05 12:00:01 UTC BoA says "[a]ssuming that tariffs are sustained at the announced levels, they could add up to $650bn (~2pp of GDP) to federal revenues. This would make a large dent in the deficit... However, we view this as a clear upper bound as it does not account for several factors that would diminish the deficit reduction from higher tariffs." First, they note "[b]usinesses and households are likely to substitute from higher priced imports towards domestic producers and/or towards countries with relatively lower tariffs. The latter dominated during the 2018/2019 trade war as imports from China fell sharply in 2019 but imports rose from the rest of the world (Exhibit 2). The latest tariff actions would, however, make rerouting less attractive given high increases across most trading partners. Meanwhile, reshoring will take time for many of the affected goods, but if it is successful would mean much less revenue from imports."  XXXXX engagements  **Related Topics** [government spending](/topic/government-spending) [gdp](/topic/gdp) [$650bn](/topic/$650bn) [tariffs](/topic/tariffs) [boa](/topic/boa) [Post Link](https://x.com/neilksethi/status/1908489802472972419)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Neil Sethi @neilksethi on x 12.7K followers
Created: 2025-04-05 12:00:01 UTC
BoA says "[a]ssuming that tariffs are sustained at the announced levels, they could add up to $650bn (~2pp of GDP) to federal revenues. This would make a large dent in the deficit... However, we view this as a clear upper bound as it does not account for several factors that would diminish the deficit reduction from higher tariffs."
First, they note "[b]usinesses and households are likely to substitute from higher priced imports towards domestic producers and/or towards countries with relatively lower tariffs. The latter dominated during the 2018/2019 trade war as imports from China fell sharply in 2019 but imports rose from the rest of the world (Exhibit 2). The latest tariff actions would, however, make rerouting less attractive given high increases across most trading partners. Meanwhile, reshoring will take time for many of the affected goods, but if it is successful would mean much less revenue from imports."
XXXXX engagements
Related Topics government spending gdp $650bn tariffs boa
/post/tweet::1908489802472972419