US Treasury chief estimates $300 billion in tariff income for the year
Treasury Secretary Scott Bessent on Tuesday stated that the US has collected approximately $100 billion in tariff income this year, with projections suggesting it could reach $300 billion by the end of 2025 as collections from President Donald Trump’s trade campaign increase.
Bessent, addressing a White House cabinet meeting, stated that significant collections from Trump’s new tariffs began only in the second quarter, following Trump’s implementation of a nearly universal 10 percent duty on US imports, along with increased duties on steel, aluminum, and autos. “So we could expect that that could be well over $300 billion by the end of the year,” Bessent said.
A Treasury spokesperson stated that the $300 billion target aligns with the December 31 end of calendar 2025, rather than the end of the government’s fiscal year on September 30. Achieving $300 billion in tariff collections this year suggests a significant rise in collections in the upcoming months, along with substantial and widespread tariff hikes from current levels. Bessent stated that the Congressional Budget Office has estimated tariff income will reach approximately $2.8 trillion over a decade, “which we think is probably low.” The Treasury announced that gross customs duties reached a record $22.8 billion in May, marking a nearly fourfold increase from the $6.2 billion total reported a year prior.
Customs duty collections for the first eight months of fiscal 2025 reached $86.1 billion. Collections for the initial five months of calendar 2025 reached $63.4 billion. The Treasury will report June budget results on Friday, anticipated to reveal a significant rise in tariff collections. As of June 30, combined customs and excise tax collections reached $122 billion for the fiscal year to date, according to the Daily Treasury Statement of accounts.
Trump has established a new August 1 deadline for increased “reciprocal” tariff rates affecting nearly all trading partners, allowing for negotiations with certain countries over the next three weeks to potentially lower these rates. “The big money will start coming in on August 1.” “I think it was made clear today by the letters that were sent out yesterday and today,” Trump said. During the cabinet meeting, Trump announced a 50 per cent tariff on copper imports, a metal essential for housing, consumer electronics, vehicles, the power grid, and military hardware. He stated that additional tariffs would be imposed on semiconductors and pharmaceuticals.
