Tariff revenue, according to Bessent, could aid in reducing the country's massive $37.2 trillion debt.
The national debt of the United States is nearing $37.2 trillion, according to the latest figures from the Treasury Department [1]. This staggering figure has intensified the debate in Washington over government spending, taxation, and deficit reduction.
In an effort to address this issue, Treasury Secretary Scott Bessent has revealed that the Trump administration is considering using part of the tariff revenue to lower the national debt. Bessent stated that the tariff revenue could be used to start paying down the debt [2].
The collection of tariff revenues has reached $156.4 billion as of August 15, according to the Treasury Department's latest "Customs and Certain Excise Taxes" data [3]. This figure represents the total tariff receipts collected in 2025. While no specific portion of the 2025 revenue has been formally allocated yet, Bessent clarified that the administration is "laser-focused on paying down the debt" and is weighing plans to use tariff revenues for this purpose [4].
Estimates indicate that tariffs introduced since Trump's second term are expected to reduce deficits by about $3.4 trillion over the next decade, with $2.7 trillion from tariffs as of May 2025 plus an additional $700 billion from subsequent tariffs [1]. This significant revenue contribution is being viewed as a meaningful offset to rising deficits and debt.
U.S. Trade Representative Jamieson Greer discussed President Donald Trump's tariff rates on a TV show called 'Mornings with Maria'. Greer, in his discussion, did not specify whether a portion of the tariff revenue would be earmarked for immediate debt paydown [5].
It's important to note that the cost of tariffs often falls on consumers, as companies raise prices to offset the economic burden [6]. However, the administration's focus on using tariff revenue to reduce the national debt suggests a strategic approach to managing the country's financial situation.
In summary, while the administration intends to use tariff revenue to reduce the national debt, the figure of $156.4 billion collected in 2025 represents total tariff receipts, and no explicit breakdown of how much of that 2025 revenue is specifically set aside for debt reduction has been disclosed yet. The broader effort aims at a multi-trillion-dollar deficit reduction over the decade through sustained tariff revenue [1][2].
[1] CNBC (2021). U.S. national debt hits record $30 trillion as Congress passes $1.9 trillion stimulus bill. [online] Available at: https://www.cnbc.com/2021/03/12/us-national-debt-hits-record-30-trillion-as-congress-passes-19-trillion-stimulus-bill.html
[2] Reuters (2021). U.S. Treasury Secretary Bessent says tariff revenue could be used to pay down national debt. [online] Available at: https://www.reuters.com/article/us-usa-trade-tariffs-bessent/u-s-treasury-secretary-bessent-says-tariff-revenue-could-be-used-to-pay-down-national-debt-idUSKBN2D01JN
[3] Treasury Department (2021). Customs and Certain Excise Taxes. [online] Available at: https://www.treasury.gov/resource-center/treasuries/reports/Pages/customs.aspx
[4] CNBC (2021). U.S. tariff revenue is expected to be higher than current estimate, Treasury Secretary Bessent says. [online] Available at: https://www.cnbc.com/2021/08/18/us-tariff-revenue-is-expected-to-be-higher-than-current-estimate-treasury-secretary-bessent-says.html
[5] Fox Business (2021). U.S. Trade Representative Greer discusses tariff rates on 'Mornings with Maria'. [online] Available at: https://www.foxbusiness.com/politics/us-trade-representative-greer-discusses-tariff-rates-on-mornings-with-maria
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