Tariffs and DOGE can’t fix America’s debt crisis

Despite the Trump Administration’s proposed tax bill and efforts to raise revenue through tariffs and DOGE cuts, the US remains on an unsustainable debt path, highlighting a persistent long-term structural challenge, says Chad Padowitz, Talaria co-CIO.

“The tax cut that the Trump administration has passed would currently add about 0.9 per cent to GDP debt, so even if Elon Musk’s DOGE efficiencies were successful, in addition to the added revenue raised through higher tariffs, they wouldn’t come close to plugging this gap.”

Chad notes that with tariffs being the highest they have been in decades, and the headwind they will be to future growth, European equities seem more attractively priced than their US counterparts.

“Times like this call for sound investment decisions – companies with solid leadership, strong balance sheets and stable business models.”

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