US Policymakers May Start Relying on Trump Tariffs for Revenue

US President Donald Trump's extensive tariffs have already started to generate a significant amount of money for the federal government, a new source of revenue for a heavily indebted nation that US policymakers may start to rely on.

- ANDREW DUEHREN

As part of his quest to reorder the global trading system, Trump has imposed steep tariffs on America's trading partners, with the bulk of those set to go into effect on August 7. Even before the latest tariffs kick in, revenue from taxes collected on imported goods has grown dramatically so far this year.

Customs duties, along with some excise taxes, generated $152 billion through July, roughly double the $78 billion netted over the same time period last fiscal year, according to Treasury data.

Indeed, Trump has routinely cited the tariff revenue as evidence that his trade approach, which has sowed uncertainty and begun to increase prices for consumers, is a win for the United States. Members of his administration have argued that the money from the tariffs would help plug the hole created by the broad tax cuts Congress passed last month, which are expected to cost the government at least $3.4 trillion.