The United States Secretary of the Treasury, Scott Bessent, announced on Wednesday (September 3) that the tariff revenue in the U.S. exceeded $31 billion in August, reaching a historic high. According to the latest “Daily Treasury Statement” from the Treasury Department, as of August 29, a total of $183.56 billion in tariffs has been collected in this fiscal year.
Bessent took to social media platform X and wrote: “Tariff revenue in August exceeded $31 billion, setting a new record. As the collection scale continues to expand, the Trump administration is working to fix the financial mess it inherited.”
Last week, Bessent predicted that the tariff policy implemented by Trump could bring in annual revenues of over $500 billion, significantly higher than his initial estimate of $300 billion. He further stated on August 26, “Our tariff revenue could surpass $500 billion, even approaching $1 trillion. This administration has made significant progress in reducing the fiscal deficit.”
The Congressional Budget Office (CBO) predicted last month that if the tariff policy continues, it could reduce the fiscal deficit by approximately $4 trillion over the next ten years. This includes a reduction of $3.3 trillion in the primary deficit and a $700 billion decrease in interest expenses, significantly higher than the previous estimate of $2.5 trillion.
Reducing the trade deficit with the U.S.’s global trading partners has always been a core aspect of Trump’s trade policy. On April 9 this year, Trump announced the implementation of “reciprocal tariffs” on dozens of countries to address what he viewed as unfair trade practices. Subsequently, the U.S. government intensified efforts to reach bilateral agreements with the EU, the UK, China, and Japan, aiming to reach agreements before the import taxes took effect on August 1.
However, last week, the U.S. Federal Circuit Appeals Court ruled 7-4 that most of Trump’s tariff measures were “unlawful.” The court’s decision on August 29 stated that the International Emergency Economic Powers Act of 1977 does empower the president to take various actions during a national emergency, but it does not explicitly authorize the president to levy tariffs or taxes.
The ruling will come into effect on October 14, and until then, the tariff measures will continue to be enforced, allowing the White House time to appeal to the Supreme Court.
On the same day, Trump posted on his “Truth Social” platform, stating that removing tariffs would be “a total national disaster,” and warned that the U.S. would fall into a “fragile financial state.” He emphasized that the U.S. would no longer tolerate significant trade deficits and unfair tariffs and non-tariff barriers imposed by foreign countries, stating that if the ruling stands, “the United States will be completely destroyed.”
On September 2, Trump announced that the government would request the Supreme Court to expedite the hearing of this case on September 3. Speaking in the White House Oval Office, he told reporters, “Without these tariffs, the U.S. would be in very serious trouble.”
Bessent, on the other hand, emphasized that he believes the Supreme Court will uphold the president’s power to levy tariffs under the IEEPA, but also revealed that even if the final decision is unfavorable, the White House has other ways to implement import taxes, although not as efficient as the IEEPA, it is still feasible.
He warned that the massive trade deficit accumulated by the U.S. is approaching a “critical point,” and if not curbed, the economy will face catastrophic consequences, “avoiding a crisis itself is an emergency.”