The news that the U.S. Treasury Department posted a budget surplus of $27 billion for the month of June proves that President Donald Trump is correct about his tariffs, Dick Morris, an adviser to the president, said on Newsmax on Saturday.
"The predictions that his tariffs would cause inflation have been proven incorrect," Morris told "The Count." "There is no inflation, and the cost of imported goods dropped this last month."
The Treasury Department on Friday said that tariffs gave a boost to the government's receipts, with a surplus of just over $27 billion, following a $316 billion deficit in May, reports CNBC.
The rise brought the fiscal deficit to date to $1.34 billion, up 5% from a year ago, but after calendar adjustments, the deficit lowered by 1%.
The current fiscal year will end Sept. 13.
The government last posted a surplus for June in 2017, when Trump was serving his first term, according to the report.
"People were worried that this would blow out the budget deficit," said Morris. "Well, it's blown away the budget deficit, and we now have a surplus of revenue, all because of the Trump tariffs, which the economists paid no attention to. Nobody factored them into their predictions."
The tariff revenue, he added, "has swept everything away and Trump now is literally looking at a budget surplus, not a deficit for the first time in eight years."
Meanwhile, Trump announced Saturday that he is levying 30% tariffs against the European Union and Mexico.
There are predictions that the move will cause an upheaval between the United States and two of its biggest trading partners, but Morris disagreed.
"We import about $500 billion a year from the EU and about $250 billion a year from Mexico, and the equivalent amounts from Canada," he said. "A tariff imposes a tax on those, and in this case, the tax would be about 30%. So this is going to generate an additional $300 billion or $400 billion of revenue in addition to the surplus that was recorded this year."
Morris also said he wonders when people will learn that ultimately, "Trump's tariffs work."
"They do not cause inflation," he said. "They do not cause prices to go up, and they do not cause World War III. Our trading partners get used to them, they acclimate to them, and they understand that basically they've been discriminating against the U.S. for so long that now, when we're breaking even with them, it's a shock."
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Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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