Treasury Secretary Bessent: Tariff revenues may surpass $500 billion annually

• Treasury Secretary Scott Bessent announced customs duty revenues from Trump’s tariffs could exceed $500 billion annually, possibly reaching $1 trillion, due to sharp increases from July to August 2025.
• The rising tariff revenue is helping offset the projected $3.4 trillion deficit caused by 2025’s tax cuts and spending increases, with the CBO now estimating tariffs could reduce the deficit by $4 trillion over 10 years.
• Broad tariff hikes on nearly all trading partners took effect Aug. 7, driving U.S. customs duty collections to record highs, $29.6 billion by August 22, matching July’s total with days still left in the month.
• The Trump administration views the tariffs as both a tool to protect U.S. industries, particularly steel and aluminum, and as a significant source of federal revenue.
• While the administration highlights the fiscal and industrial benefits, critics warn the tariffs may raise consumer prices, disrupt supply chains and escalate tensions with key trading partners.

U.S. Treasury Secretary Scott Bessent has estimated that customs duty revenues from President Donald Trump’s sweeping tariffs could exceed $500 billion annually – potentially reaching as high as $1 trillion – as collections surged in recent months.

Speaking at a White House Cabinet meeting on Tuesday, Aug. 26, Bessent revealed that his earlier estimate of $300 billion in annual tariff revenue had significantly underestimated the pace of growth.

“We had a substantial jump from July to August, and I think we’re going to see a bigger jump from August to September,” he said. “So I think we could be on our way well over half a trillion, maybe toward a trillion-dollar number. This administration, your administration, has made a meaningful dent in the budget deficit.” (Related: U.S. job market surges past projections despite looming tariff uncertainty.)

Bessent credited the sharp increase in tariff collections as a meaningful step toward reducing the federal budget deficit, which had been projected to balloon due to the Republicans’ tax-cut and spending bill passed earlier this 2025. That legislation is expected to add $3.4 trillion to the national deficit over the next decade, according to the Congressional Budget Office (CBO).

In July alone, U.S. customs duty collections surged by nearly $21 billion compared to July 2024, following a similar increase in June. The Department of the Treasury reported that by Aug. 22, total customs and excise tax revenues for the month had reached $29.6 billion, equaling July’s entire total with over a week remaining in the month.

Trump’s tariffs boost U.S. industry, slash deficit

The sharp rise in revenues came after broad tariff hikes were implemented on nearly all U.S. trading partners on Aug. 7. These increases have driven daily collections to levels not seen in modern history, dramatically reshaping the federal revenue landscape.

Furthermore, the CBO recently revised its 10-year forecast for tariff-related revenue, projecting it would reduce federal deficits by $4 trillion, a full $1 trillion more than its June estimate. Bessent believes that figure could continue to rise. “I would expect that number could go up from here,” Bessent said.

According to Brighteon.AI’s Enoch, Trump imposed tariffs on a range of imported goods – particularly steel and aluminum – to protect American manufacturing and counteract foreign competition, especially from China. These tariffs were designed to bolster domestic industries and reduce the trade deficit.

The Trump administration has framed the tariffs not only as a tool to protect American industries but as a key source of revenue to offset the fiscal impact of tax cuts and increased government spending. This dual purpose of tariffs, both as a protective measure and a revenue generator, underscores the administration’s commitment to a multifaceted approach to economic policy that prioritizes both national security and fiscal responsibility.

Critics, however, warn that higher tariffs could ultimately burden U.S. consumers and businesses through increased prices and supply chain disruptions, especially as trade tensions remain high with key economic partners. But the Treasury Department’s latest figures underscore the administration’s commitment to using trade policy as a lever to address the deficit.

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Watch this clip from “The Big Money Show” on Fox Business about Trump’s tariff deadlines for Europe and Mexico.

This video is from the NewsClips channel on Brighteon.com.

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Sources include:

YourNews.com

Newsmax.com

Brighteon.AI

Brighteon.com