The Supreme Court ruled Friday that President Donald Trump’s extensive use of tariffs during his first year back in office were illegal. The court responded to escalating protests from small businesses saddled with higher costs and a large portion of Americans who are skeptical as to the benefits of Trump’s tariff regime. But by striking down part of Trump’s trade agenda, the judges might send America’s ever-widening deficit soaring even higher.
The national fiscal outlook is already on an unsustainable trajectory. As the Congressional Budget Office projected earlier this month, federal debt is set to reach 120% of GDP by 2036, but that forecast assumes current policies will remain in place. A perfect storm of other factors could align to send debt climbing to even greater heights.
