Trump tariffs live updates: Trump has said tariff revenues could pay for at least 9 different things; Democrats say tariffs have cost each American household $1,200

The revenue coming in from President Trump’s tariffs dipped in November, but the president’s oft-made promises for what he will do with the money have continued apace.

According to Yahoo Finance’s count, the president has floated at least nine different ideas for how tariff money could be used, stretching back to the 2024 campaign.

It’s a list of promises that ranges from sending Americans $2,000 tariff dividend checks to paying for the tax cuts that Republicans instituted this summer.

Trump reminded the crowd at a recent rally in Pennsylvania just how he feels about tariffs, saying of the word, “I love it more than any other word in the dictionary.” He only demoted it behind other words like religion and family, he said, at the behest of the “fake news.”

Yet the tariff revenue picture has gotten considerably more cloudy in recent weeks after the president bowed to Americans’ affordability concerns and lifted some tariffs on items like coffee, oranges, and cocoa that had seen price increases.

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President Trump said last month that the American people are “paying something” for tariffs.

Democrats have tallied up what they say is the actual cost.

Democrats on the bicameral Joint Economic Committee (JEC) have estimated that, on average, US households are paying nearly $1,200 in additional costs due to Trump’s tariffs.

The Hill reports:

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Indonesia hopes to conclude its trade agreement with the US by the end of 2025. This week, reports emerged that the trade deal between Washington and Jakarta was at risk of collapse due to Indonesia’s failure to implement its side of the agreement.

Growing tensions between the US and Indonesia have threatened to unravel ties between the two countries, prompting Jakarta to announce that it will send a delegation to Washington next week to discuss the matter and finalize what was agreed upon by leaders in July.

Coordinating Minister for Economic Affairs Airlangga Hartarto spoke to US Trade Representative Jamieson Greer on Thursday.

Bloomberg News reports:

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The FT reports:

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Deere (DE) has warned that President Trump’s tariffs are backfiring on US farmers, prompting some to delay replacing outdated or old equipment.

The FT reports:

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President Trump and India’s Prime Minister Narendra Modi have spoken in a bid to ease trade tensions between the two sides. Modi said the conversation was “warm and engaging” and added that they had “reviewed the progress for bilateral relations and had also discussed regional international developments.”

Trump imposed 50% tariffs on India, 25% of which was due to India’s purchase of Russian oil. Hints that both sides were trying to reconcile and restart trade negotiations emerged earlier this week, with the arrival of US officials in New Delhi.

Bloomberg news reports:

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The US trade deficit narrowed in September to its smallest margin in more than five years, as exports increased healthily and imports grew slightly.

The deficit shrank by 10.9% to $52.8 billion, according to data released by the Department of Commerce on Thursday, marking the lowest level seen for the measure since June 2020.

Exports rose 3% to $289.3 billion in the month, while imports rose by a much softer 0.6% to $342.1 billion. The month saw noted strength in consumer goods exports, which reached a record high in September, while on the other side, imports of automotive vehicles, engines, and other parts fell to their lowest level since November 2022.

The real goods deficit narrowed by 5.6% on the month, equal to $4.7 billion. Making up that figure, real exports of goods gained 4.2% against a gain in nominal goods exports of 4.9%, while real imports of goods gained 0.7% equal to a gain of 0.7% in nominal goods imports.

Notably, the US’ trade deficit with China — a longtime preoccupation of the Trump administration and President Trump personally — shrank to $11.4 billion from a previous $15.4 billion, a change of roughly 25%.

US Trade Representative Jamieson Greer said on Wednesday that the US will other measures to recreate the $200 billion in revenues it is collecting under tariffs if the Supreme Court shuts down the use of the International Emergency Economic Powers Act that the Trump administration is currently using.

Reuters reports:

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CNN reports:

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Fed Chair Jerome Powell ‌on Wednesday pointed to President Trump’s tariffs as the reason for the current overshooting of the central bank’s 2% inflation target.

“It’s ​really tariffs that ‌are causing most of the inflation overshoot,” Powell said, while emphasizing that the central bank expects the tariffs to represent a “one-time” increase in prices.

“Our job is to make sure that it is,” he added.

Powell also declined to weigh in on a reporter’s question over the impacts of a potential Supreme Court decision striking down Trump’s most sweeping tariffs.

Read our live blog for the latest updates and analysis on the Fed.

Bloomberg News:

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US farmers have said they need more than a $12 billion aid package to fully offset the low crop prices and lost export opportunities resulting from President Trump’s trade war.

Trump introduced the aid package for farmers this week, with the industry welcoming the support, saying it would help them prepare for the next planting season. However, the industry suggested that it is a fraction of farm losses and will not rescue the flagging farm economy.

US farmers have faced steep losses this year due to Trump’s tariffs, saddled with low crop prices and higher costs for labor and inputs, such as fertilizers and seeds, and coupled with the decline in exports of crops like soybeans, which have dropped due to Trump’s trade dispute with China.

Reuters reports:

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Reuters reports:

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The trade deal between the US and Indonesia is in danger of collapsing, The Financial Times reported Wednesday, citing people familiar with the matter. US officials have grown increasingly frustrated at what they view as Jakarta reneging on the terms of the agreement reached in July.

The trade deal states that Indonesian goods will face a US tariff rate of 19%. Indonesia will also eliminate tariff barriers on over 99% of US products exported to Indonesia across sectors such as agriculture, health products, seafood, and technology.

However, the report said that Jakarta is slow to implement the deal.

The FT reports:

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President Trump defended his sweeping tariff policies, but suggested in an interview on Tuesday that he may allow for “some” additional carveouts after moves to slash duties on goods that were surging in price.

In an interview with Politico, Trump was asked whether he’d consider cutting tariffs on other consumer staples. In recent weeks, his administration has slashed duties on coffee, beef, and bananas, in a bid to address Americans’ concerns over price pressures.

Trump said he would “on some, and on some I’ll increase tariffs.” He said the breaks he approved recently amid a voter outcry against elevated prices on groceries in particular were “very small carveouts.”

“It’s not a big deal,” he said.

See the full interview here.

One of the key questions being asked is whether President Trump’s tariffs are helping to close the trade deficit. For the FT’s senior trade writer Alan Beattie, the answer is no.

The FT reports:

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China’s Premier Li Qiang said on Tuesday that tariffs have dealt a “severe blow” to global economies. These latest remarks from Beijing come as China’s trade surplus surged past $1 trillion.

The AP reports:

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