Trump tariffs could help clear the way for bigger tax cuts as Congress eyes a potential revenue windfall — and a shrinking economy

(Credit: Drew Angerer—AFP via Getty Images)

• President Donald Trump's much higher-than-anticipated tariffs have crushed stocks but could raise a substantial amount of revenue, while shrinking the economy in the process. The import taxes could generate $700 billion a year in revenue. That could help clear the way in Congress for bigger income tax cuts, though the tariffs would also be the equivalent of a massive tax hike on consumers.

Wall Street suffered a massive case of sticker shock when President Donald Trump unveiled his latest round of tariffs on "Liberation Day," wiping out $6 trillion in market cap.