Summary
The Tariffs and the Philadelphia Budget issue brief examines how proposed federal tariffs could impact the City’s revenue collections and expenditures, particularly in sectors such as healthcare, manufacturing, and infrastructure. The report highlights the potential for increased business tax revenue if tariffs bolster local industry but also warns of cost increases in City procurement, especially for construction and essential goods. Additionally, the report discusses how tariffs could affect property-related revenues, as higher costs for materials could slow real estate development and construction, potentially lowering tax collections. The City’s financial planning will need to account for both the risks and opportunities that tariffs present. The report suggests proactive measures such as diversifying revenue sources, expanding local procurement, and maintaining reserves to mitigate potential budget disruptions. It also emphasizes the importance of engaging with businesses to understand sector-specific needs and responses to tariffs. By strategically adapting to these economic shifts, Philadelphia can safeguard its budget while ensuring continued investment in infrastructure and services.