US Treasury: "Trump's Tariff Revenues Could Reach Up to $1 Trillion Annually"

"Tariff Revenues Expected to Rise Further in September
Deficit Reduction Likely to Widen"

Scott Besent, U.S. Secretary of the Treasury, stated that annual tariff revenues resulting from President Donald Trump's tariff policies could exceed $500 billion (approximately 698 trillion won) and may even reach as much as $1 trillion.

According to Reuters on August 26 (local time), Secretary Besent said during a White House Cabinet meeting, "There was a significant increase in tariff revenues from July to August, and I believe there will be an even greater increase from August to September."

Scott Besent, U.S. Secretary of the Treasury. Photo by EPA Yonhap News

Secretary Besent emphasized, "We could easily surpass $500 billion and may approach $1 trillion," adding, "The administration has made meaningful progress in reducing the fiscal deficit."

Back in April, Secretary Besent had projected that President Trump's tariff policies would generate annual tariff revenues of $300 billion to $600 billion, but his latest outlook significantly exceeds those estimates. In an interview with CNBC on the 19th, he also stated, "I have said that tariff revenues could reach $300 billion this year, but I will have to revise that number substantially upward."

According to the U.S. Treasury Department's compilation of 'Tariffs and Certain Excise Taxes,' U.S. tariff revenues reached $29 billion in July. Tariff revenues have continued to rise, from $17.4 billion in April to $23.9 billion in May and $28 billion in June. The cumulative total as of July was $152 billion.

With high tariffs on trading partners going into full effect starting August 7, tariff revenues are expected to increase further. As of August 22, the U.S. Treasury Department announced that tariff and excise tax revenues for the month had reached $29.6 billion, already surpassing the total for July.

Reuters reported that the tariff revenues are expected to offset the fiscal deficit caused by President Trump's large-scale tax cut bill, which was passed by the U.S. Congress last month. The Congressional Budget Office (CBO) estimated that the bill would increase the deficit by $3.4 trillion over the next 10 years.

Secretary Besent highlighted that the CBO raised its forecast last week for increased federal revenues from President Trump's tariffs, projecting that the fiscal deficit could be reduced by $4 trillion over the next 10 years. He added, "I believe this number could increase even further going forward."