US Treasury Secretary Scott Bessent expects tariff income to reach $300 billion by 2025.

US Treasury Secretary Scott Bessent expects tariff income to reach $300 billion by 2025.

US Treasury Secretary Scott Bessent has announced that tariff income could reach $300 billion by the end of 2025, marking a significant increase from the current collections. Bessent made this projection during a White House cabinet meeting, highlighting the acceleration of tariff collections from President Donald Trump's trade campaign [1].

The major collections from Trump's new tariffs began during the second quarter, when a near-universal 10% duty was implemented on US imports, and duties on steel, aluminum, and autos were boosted. As of now, the US has collected about $100 billion in tariff income this year, with the Treasury expecting a substantial increase in the coming months [1].

Bessent's projection suggests an exponential growth in tariff collections, with the Congressional Budget Office estimating that tariff income will total about $2.8 trillion over 10 years. The Treasury reported record gross customs duties of $22.8 billion in May, a nearly fourfold increase from the previous year, further supporting the anticipated growth [1].

In addition to the projected tariff income, Trump has set a new August 1 deadline for higher "reciprocal" tariff rates, which will apply to nearly all trading partners. This deadline provides room for negotiations with some countries to bring their tariff rates lower [1].

The US Treasury Secretary's projections and the recent increases in tariff collections underscore the significant impact of Trump's trade policies on the US economy. As the deadline approaches, investors and financial professionals should closely monitor the developments to assess their potential implications on global trade and economic growth.

References:
[1] https://www.businesstimes.com.sg/international/us-could-collect-us300-billion-tariff-revenue-year-treasury-chief-say