Washington, Aug 8 (Alliance News): US President Donald Trump continues to tout record revenue from tariffs—taxes on imported goods—saying the government is “bringing in more money than ever before.”
According to the US Treasury Department, tariff collections reached about $30 billion last month, up 242% from July last year. Since April, total revenue from tariffs has topped $100 billion—triple the amount during the same period in 2024.
Trump has floated two possible uses for the money: paying down the national debt and issuing “tariff rebate checks” to Americans. But neither plan has moved forward.
All tariff revenue goes into the government’s “General Fund,” which also covers expenses such as Social Security. If revenue falls short, the government borrows. The US currently owes more than $3.6 trillion, with a $1.4 trillion budget deficit for this fiscal year.
Experts say tariffs are helping to slightly reduce the deficit, but not enough to erase it. Economist Ernie Tedeschi warns that giving the money directly to citizens could worsen inflation, especially with prices for appliances, toys and electronics already climbing.
Large retailers, including Walmart and Procter & Gamble, have signaled further price hikes. Tedeschi also predicts the tariffs could slow US economic growth by half a percentage point this year and next, cutting tax revenue in the process.
While the White House insists tariffs and tax cuts will boost the economy long-term, the debt remains unpaid and no direct relief has reached the public.
