OAN Staff Abril Elfi
11:41 AM – Wednesday, August 27, 2025
U.S. Treasury Secretary Scott Bessent stated that customs duty revenues from President Donald Trump’s tariffs could exceed $500 billion annually, with projections reaching up to $1 trillion.
On Tuesday, during a cabinet meeting at the White House, Bessent highlighted that this is a significant increase from earlier estimates of $300 billion per year. The surge is attributed to substantial month-to-month increases in tariff collections, particularly from July to August, and expectations of continued growth in September.
“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.”
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Tariff revenues are expected to help offset the deficit increase projected from the GOP’s recent tax-cut and spending bill. The Congressional Budget Office (CBO) had initially estimated that the bill will expand the deficit by $3.4 trillion over the next decade.
Trump’s tariffs led to a nearly $21 billion boost in July U.S. customs duty collections, compared to $7 billion in July 2024, roughly matching the $20 billion increase seen in June. Significant tariff rate hikes for nearly all trading partners started on August 7th.
As of August 22nd, the U.S. Treasury reported $29.6 billion in collected customs and excise taxes for August, matching the total of $29.6 billion for July — which was reported on July 22nd.
Bessent also mentioned that the CBO’s recently revised estimate last week predicted tariffs could reduce federal deficits by $4 trillion over 10 years, with potential for that figure to rise as customs duty collections can fluctuate daily.
This latest estimate is higher than June’s projection, which anticipated a $3 trillion deficit reduction from new tariffs over the same period.
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