"I wouldn't think of tariffs as a reliable source of revenues in the long run," says Aditya Bhave, Senior US Economist at BofA Global Research. "There are other reasons that the deficit keeps increasing," he adds, citing population aging and rising interest costs. On the inflationary impact of tariffs, Bhave contrasts President Trump's first term with the current environment; "there's probably more willingness to pass costs on," he says.

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