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War, Tariffs and Lower Taxes on the Wealthy Drive U.S. Debt to Record Highs

Economists Reject Insolvency Risk Despite $40 Trillion Debt

Published on August 27, 2026


War, Tariffs and Lower Taxes on the Wealthy Drive U.S. Debt to Record Highs
Valter Campanato/Agência Brasil

The record U.S. public debt, which surpassed $40 trillion for the first time in history, has been driven primarily by tax cuts for the wealthy, inflation caused by the war in the Middle East that pushed up fuel prices, and tariffs imposed by the administration of Donald Trump.

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