US Treasury Secretary Scott Bessent said that customs duty revenue from tariffs introduced by President Donald Trump could exceed $500 billion a year.
Bessent also said that his original estimate of $300 billion a year was low, due to a significant spike from July to August with a possible larger spike in September.
He said the revenue boost would help reduce the budget deficit that is expected to increase due to Republican tax cuts and spending legislation, which the CBO estimates will add $3.4 trillion to the deficit over the next decade.
According to the US Treasury Department, customs duty and excise tax collections as of August 22 had reached $29.6 billion, matching the total for July, which was $7.8 billion as of July 22.
Bessent also cited a reassessment from the Congressional Budget Office (CBO) that projected that tariff revenue could reduce the deficit by $4 trillion over 10 years, up from a previous estimate of $3 trillion.
