President Donald Trump’s policies may be sending the U.S. economy in a tailspin. The U.S. government’s gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America’s balance sheet and increased cost pressures on taxpayers.
Chair and CEO of the Peter G. Peterson Foundation Michael Peterson said in a statement that government borrowing puts upward pressure on interest rates, “adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing.”
The $37 trillion update is found in the latest Treasury Department report issued Tuesday which logs the nation’s daily finances.
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Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement that “hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly.”
“Tariffs have not caused inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers,” Trump wrote in a Truth Social post.
Trump’s tariff policies have had mixed effects on the U.S. economy. While tariffs on imports from China, India, and other nations generated a sharp increase in customs revenue, up by 273% in July 2025 compared to the previous year, they also contributed to higher costs for American businesses and consumers. These tariffs have disrupted supply chains and increased inflationary pressures, which in turn slowed economic growth in key sectors such as manufacturing and technology.
Despite the revenue boost from tariffs, the overall fiscal impact has been negative, with the U.S. budget deficit expanding by roughly 20% year-over-year in 2025. This increase reflects not only higher government expenditures but also the dampening effect tariffs have had on exports, due to retaliatory measures by affected countries. Economic experts caution that the ongoing trade tensions, if prolonged, could further hinder economic stability and exacerbate the national debt.
The U.S. economy is facing growing strain under the weight of rising national debt and aggressive trade policies. While President Trump’s tariffs have increased customs revenue significantly, the broader economic consequences, including inflationary pressures, higher costs for consumers and businesses, and reduced international trade, have contributed to a worsening fiscal outlook. The national debt surpassing $37 trillion underscores the urgency of fiscal reform, with experts warning that continued borrowing and interest obligations may crowd out essential government investments.
Despite Trump’s claims that tariffs are a net positive, many economists argue that the long-term effects on growth, competitiveness, and financial stability are deeply concerning. The situation reflects the complex trade-offs of protectionist policies, where short-term gains in revenue are offset by broader economic disruptions. Unless addressed through balanced policy and bipartisan reform, these mounting challenges could deepen vulnerabilities in the U.S. economy and complicate efforts to ensure long-term fiscal sustainability.