Update to this post<\/a>.<\/p>\n In nominal dollar terms. Thanks, Trump.<\/p>\n \u00a0<\/p>\n Notes:\u00a0<\/strong>Tax increase associated with announced Trump tariffs on Canada, Mexico, and China assuming a unitary price elasticity of import demand (orange bar), and assuming zero (orange bar plus light orange bar).\u00a0Source:<\/strong>\u00a0graphic from\u00a0Factcheck (2012)<\/a>, modified by author. [graph edited 2\/4]<\/em><\/p>\n The measures mean the US taxes additionally about $1.3 trn worth of goods (2023 amounts). That\u2019s the biggest one year<\/em> tax increase in dollar terms since\u2026 ever, at $252 bn ($192 bn assuming unit elasticity of demand and if Trump goes through with plans). Taxes collected by CPB, and going into the US Treasury.<\/p>\n That\u2019s in nominal dollar terms. As a share of GDP, it\u2019s 0.9%, 0.7% assuming unit elasticity.<\/p>\n By the way, Ontario\u2019s retaliation raises Canada\u2019s taxes on American \u2014 a 25% export tax on electricity exports.\u00a0 Canada exported is $4.2 bn in 2022, and about 25% of that is from Ontario. So add $260 mn to the tally.<\/p>\n<\/p><\/div>\n <\/p>\n![\"\"](\"https:\/\/econbrowser.com\/wp-content\/uploads\/2025\/02\/biggesttaxincreases1.png\")
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