Posted on 07/09/2025 12:33:20 PM PDT by Twotone
Treasury Secretary Scott Bessent on Tuesday said the U.S. has taken in about $100 billion in tariff income so far this year, and this could grow to $300 billion by the end of 2025 as collections accelerate from President Donald Trump's trade campaign.
Bessent, speaking to a White House cabinet meeting, said the major collections from Trump's new tariffs only started during the second quarter, when Trump implemented a near universal 10% duty on U.S. imports and boosted 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 said the $300 billion target corresponds to the December 31 end of calendar 2025, not the end of the government's fiscal year on September 30.
Reaching $300 billion in tariff collections this year would imply an exponential increase in collections in coming months and steep and broad tariff increases from current levels.
Bessent added that the Congressional Budget Office has estimated tariff income will total about $2.8 trillion over 10 years, "which we think is probably low."
The Treasury reported record gross customs duties of $22.8 billion in May, a nearly fourfold increase from the $6.2 billion total a year earlier.
That brought customs duty collections for the first eight months of fiscal 2025 to $86.1 billion. Collections for the first five months of calendar 2025 totaled $63.4 billion.
The Treasury is due to report June budget results on Friday, which are expected to show another substantial increase in tariff collections. As of June 30, combined customs and excise tax collections topped $122 billion for the fiscal year to date, according to the Daily Treasury Statement of accounts.
Trump has set a new August 1 deadline for higher "reciprocal" tariff rates set to kick in on nearly all trading partners, with room for negotiations with some countries in the next three weeks for deals to bring them lower.
"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.
Trump also announced during the same cabinet meeting that he would impose a 50% tariff on copper imports, a metal used in everything from housing to consumer electronics, vehicles, the power grid and military hardware. He also said further tariffs were coming on semiconductors and pharmaceuticals.
From us!
“From us!”
Not necessarily. Distributors and Retail can eat the costs, find internal efficiencies to lower their overhead cost. If inflation doesn’t tic up then I’d say it’s a win / win.
We can always buy American. :-)
When you have a debt load of 37+ Trillion, that is 0.3 Trillion.............
Very good.
Someone gets math on this site.😉👍
Winning
True, not even a drop in the bucket. But how do you eat an elephant? One bite at a time.
And our deficit driven uniparty will spend an extra $100 for every dollar collected.
It’s an appreciable dent in the deficit.
Beats nothing.
That's not how it works. The importer still faces a competitive market. The foreign suppliers also have to keep production going scaled to their capability in order to offset fixed costs. There is a limit to how much they can raise prices in response to the tariff and end up eating much of it.
IOW it is a tax, but much of it is on the supply chain, not the buyer. That's why prices have not risen in direct proportion.
You can buy an American car or Japanese model made in the US but when steel and aluminum tariffs are at 50% prices are going up a few thousand (at least). More expensive replacement parts and repairs also causes auto insurance to spike for everyone (AGAIN). Because Japanese don’t want to buy American cars which aren’t even marketed in the country ?? We’ll see how long this stays in effect.
I don’t know. The only person who actually balanced the federal budget is Newt Gingrich.
He says it will take as much as 5 years to balance the federal budget.
I think it could be less because the stock market just made what is know as a golden cross. that’s the point where moving averages turn positive. Analysts say these crosses usually correspond with massive increases in the stock market.
These massive new stock market returns provide a vast pool of new funds to the federal treasury.
Don’t buy, don’t pay. Who pays corporate income taxes?
Wait, you’d rather that revenue not come in?
This is not free money. It’s a tax that will be paid by domestic consumers, retailers or consumers.
“From us!”
Not necessarily. Distributors and Retail can eat the costs, find internal efficiencies to lower their overhead cost. If inflation doesn’t tic up then I’d say it’s a win / win.
********
The Marxist view is that those Americans don’t count when gains and losses are weighed. Is that your view?
That is impressive! It takes 1,000 billion to equal a trillion; that could significantly reduce our debt.
“The Marxist view is that those Americans don’t count when gains and losses are weighed. Is that your view?”
I care about the consumer, if that makes me a Marxist in your dim eyes, so be it.
This is not free money.
_____
Understood. But it does help to reset thinking. More Americans will buy American made products, boosting our own economy. Other countries will re-think their own tariff policy. As with all things, there’s the good & the bad. It may be that positives will out-weigh negatives.
Nope. Suppliers eat it. They want our market.
Happened in 2017 too.
Prices a coming down. Inflation is closer to 2% which is normal.
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