US Treasury Secretary Expects Rising Tariff Revenues to Reduce $38T Debt

U.S. Treasury Secretary Scott Bessent announced that tariff revenues are expected to substantially exceed the prior $300 billion estimate for 2025, with the additional funds planned to be used to reduce the nation's $37.2 trillion debt. Bessent emphasized that he and President Donald Trump remain 'laser-focused' on paying down the federal debt and lowering the deficit-to-GDP ratio. While some lawmakers have suggested using tariff revenues to provide rebate checks to Americans, Bessent clarified that the funds will initially go toward debt reduction before any potential offsets to the public. The Trump administration has highlighted rising tariff revenues as a significant fiscal development, with July collections reaching $29 billion, the highest monthly total this year. However, these tariffs primarily impose costs on U.S. businesses and consumers, who may face higher prices as companies pass on the increased import taxes. Bessent also expressed hope that lower interest rates could provide additional relief to Americans amid these fiscal efforts.