ADVERTISEMENTs
-10”-x-5.jpg)
Bessent says US tariff revenue could be well over $500 billion a year
Bessent told a White House Cabinet meeting that his prior estimate of a $300 billion annual tariff collection rate was too low.
-
Reuters - Tue, 26, Aug 2025
- 16:43 EDT
- 22
.JPG)
FILE PHOTO: U.S. Treasury Secretary Scott Bessent sits to testify before a House Ways and Means Committee hearing on Capitol Hill in Washington, D.C., U.S., June 11, 2025. / REUTERS/Elizabeth Frantz/File Photo
U.S. Treasury Secretary Scott Bessent said on Aug. 26 that customs duty revenues from President Donald Trump's tariffs may top $500 billion a year, with a substantial jump from July to August and likely a bigger jump in September.
Bessent told a White House Cabinet meeting that his prior estimate of a $300 billion annual tariff collection rate was too low.
Also Read: 'Powerful optics': China's Xi to welcome Putin, Modi in grand show of solidarity
"We had a substantial jump from July to August, and I think we're going to see a bigger jump from August to September," Bessent said. "So I think we could be on our way well over half a trillion, maybe towards a trillion-dollar number. This administration, your administration, has made a meaningful dent in the budget deficit."
Tariff revenue would offset the deficit increases triggered by the Republicans' tax-cut and spending bill passed this year. CBO estimated this bill would widen the deficit by $3.4 trillion over the next decade.
Trump's tariffs drove July U.S. customs duty collections up by nearly $21 billion from the $7 billion collected in July 2024 and about even with the $20 billion increase registered in June. Significant increases in tariff rates for nearly all trading partners kicked in on Aug. 7.
The U.S. Treasury reported on Monday that as of Aug. 22, the government had collected $29.6 billion in combined customs and excise taxes so far during August, matching its total for the whole month of July. As of July 22, that combined figure stood at $7.8 billion, but customs duty collections can vary from day to day.
Bessent also noted that the Congressional Budget Office's upwardly revised estimate last week of federal revenue from Trump's tariffs, forecasting that it could reduce federal deficits by $4 trillion over 10 years. "And I would expect that that number could go up from here," Bessent added.
The latest CBO estimate marks an increase from June when it forecast that revenue from new tariffs would reduce deficits by $3 trillion over 10 years.
Related
.JPG)
.JPG)
.png)
.JPG)
.JPG){kind=spacer}
.png)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
E Paper
ADVERTISEMENT
.jpg)
Video
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login