Is the US Generating $2 Billion from Tariffs?

President Trump has been defending his extensive tariffs by asserting that the US is subjected to “unfair trade”.

He has levied tariffs – or import taxes – on numerous countries globally, including a staggering 104% on goods imported from China. As a result, China is retaliating by increasing its tariffs on American imports.

Several of Trump’s assertions regarding trade are not backed by evidence or are outright false. BBC Verify explores these claims in detail.

“We’re profiting immensely from tariffs – $2bn per day,” Trump claimed regarding his new tariff policy on Tuesday.

However, BBC Verify has been unable to locate any officially released data to substantiate this figure.

The US Treasury Department issues a daily report that details the amount collected from customs duties into the federal coffers.

On April 7, the total collected from some of Trump’s earlier tariffs was only $215m (£168m).

This amount falls significantly short of Trump’s assertion.

It’s conceivable that his estimation is based on projections for the upcoming year.

Last year, the US imported goods valued at around $9bn (£7bn) daily.

Some analysts have determined that the average tariff rate from Trump, as of April 2, is 22%.

If you apply this rate to those import figures, it could lead to an estimate of $2bn (£1.6bn) daily.

However, this assumes that the volume of US imports would remain static.

Another possibility for how Trump arrived at this number could relate to statements made by his trade advisor on April 6.

Peter Navarro asserted that the tariffs would generate $700bn (£546bn) annually, which could be reasoned to average out to about $2bn daily.

The method by which Navarro calculated this figure is unclear and experts have suggested that the true amount could be significantly less.

BBC Verify has reached out to the White House requesting Trump’s proof for his statement.

A trade deficit arises when a country imports more from another nation than it exports. Trump asserts that the US has a significant trade deficit with China.

“We have a trillion dollar trade deficit with China,” Trump stated to reporters on April 7.

The US indeed maintains a considerable trade deficit in goods with China.

Official data reveals that this deficit was just over $295bn (£230bn) in 2024, which is significantly lower than the $1tn (£780bn) claimed by Trump.

On a global scale in 2024, China exported approximately $1tn (£780bn) more in goods than it imported.

However, contrary to Trump’s assertion, this figure applies to all trading partners and is not solely reflective of the US relationship.

Trump has alleged that Canada imposes a 270% tariff on dairy products from US farmers.

“Canada charges 270% for our dairy products. Nobody knows that. They charge you 2% for the first two cartons of milk, and after that, you go up to 270,” Trump said.

It is accurate that Canada has high tariffs on US dairy products – 241% for milk, 270% for dairy powder, and 298% for butter – but these rates only apply when specific conditions are fulfilled.

Under Canada’s tariff framework, US dairy products can enter the market with minimal or no tariffs – until established quotas are surpassed. Once these limits are exceeded, higher tariffs become applicable.

According to the US Department of Agriculture (USDA), the US shipped $1.14bn (£892m) worth of dairy products to Canada in 2024.

Despite this trade volume, the International Dairy Foods Association (IDFA) – representing America’s dairy sector – stated that “the US has never come close” to exceeding the quotas.

The IDFA, however, supported Trump’s challenge to Canada’s policy, stating it “has imposed various protectionist measures”. Nonetheless, they warned that a tariff war would “introduce uncertainty and add costs for American dairy farmers”.

Trade expert David Henig from the European Centre for International Political Economy mentioned to BBC Verify that Canada is very protective of its dairy market, but also noted that “President Trump successfully negotiated the most recent trade agreement between Canada and the US”.

In addition to China, Trump has targeted the European Union (EU), accusing it of existing “to undermine the United States”.

“We import their millions of cars. They take none of ours. They refuse our agricultural products. They receive nothing,” he stated.

Although the US brings in more cars from the EU than it ships out, Trump’s claim that they import no cars is inaccurate.

In 2024, the EU imported 164,857 cars manufactured in the US, valued at €7.7bn (£6.6bn), based on data from the European Automobile Manufacturers’ Association (ACEA).

Conversely, a much larger number, 749,170 cars from the EU were sent to the US last year, worth €38.5bn (£33.3bn).

Trump’s assertions regarding agricultural products are also incorrect.

The EU purchased $12.8bn (£10bn) worth of US agricultural exports in 2024, ranking it as America’s fourth largest market for exports – according to the USDA.

BBC Verify will continue to investigate additional trade assertions.