
To Reduce the Deficit, Tariff the Money
To reduce the deficit in a durable way, the United States must do more than tariff goods. It must tariff the money.
SENIOR ECONOMIST
Mihir Torsekar is a Senior Economist at the Coalition for a Prosperous America.

To reduce the deficit in a durable way, the United States must do more than tariff goods. It must tariff the money.

Few economic policies generate as much conversation as tariffs. Supporters see them as a way to rebuild domestic industry and rebalance supply chains. Critics argue they are little more than a tax on American consumers. For years, economists have tried to settle the question of who actually pays – and they have not all come to the same conclusion.

China’s trade surplus has crossed a dangerous threshold. In 2025, it exceeded $1 trillion for the first time, surpassing the previous record of $993 billion.

U.S. drugmakers are rapidly shifting the front end of America’s pharmaceutical ecosystem (e.g. discovery, early-stage-development, and the IP engine) to China through a surge of licensing deals and cross-border partnerships.