President Donald Trump could expand U.S. tariffs after this week's midterm elections, with Wall Street viewing trade levies as a potential revenue source amid rising war costs and surging national debt at $40 trillion.

Goldman Sachs expects Trump to announce additional tariffs following the election, according to Fortune. Goldman economists Alec Phillips and Abhay Duggirala said Democratic efforts to repeal selected tariffs would probably have limited effects, particularly if they targeted Canada or individual products.

The economists estimated that new tariff increases could exceed those reversals, raising the effective U.S. tariff rate by slightly less than two percentage points, as per the report.

Tariffs could gain more attention as conflict in the Middle East increases government spending needs. Budget hawks are seeking to narrow the federal deficit from 6% to 3% of gross domestic product. ING Groep N.V. economist James Smith said deeper congressional division could produce fiscal gridlock, encouraging policymakers to focus again on trade policy and import revenue.

Smith noted that tariffs have largely faded from the policy agenda since the Supreme Court struck down Trump's emergency tariffs, prompting the administration to replace temporary 10% across-the-board duties with a more permanent tariff structure under Section 301.

Experts Divided on Trump Tariffs

The expectation of durable tariffs predates the current election cycle. In May 2025, Wharton professor Joao Gomes said tariffs were likely to remain even if Democrats returned to power. Gomes argued that both major U.S. parties could support tariffs because they generate government revenue, making the policy difficult to unwind despite political opposition or changes in congressional control.

On the other hand, economist Peter Schiff said the September U.S. goods-trade deficit, one of the largest on record, shows Trump's tariffs have failed to boost manufacturing or reduce reliance on foreign imports. He argued that imports and trade shortfalls continue to rise despite tariffs, questioning claims of a booming economy.

Sen. Elizabeth Warren (D-Mass.) criticized Trump's tariffs, arguing they have increased the cost of essential baby products, including diaper bags and strollers, adding to the financial burden on families already struggling with expensive child care. She called for lower costs and guaranteed child care to make the service more accessible.