US May Find It Hard To Quit Money-Making Trump Tariffs

Policymakers could start to rely on new source of revenue for indebted nation

- Andrew Duehren

WASHINGTON - 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 American policymakers may start to rely on.

As part of his quest to reorder the global trading system, Mr Trump has imposed steep tariffs on America's trading partners, with the bulk of those set to go into effect on Aug 7.

Even before the latest tariffs kick in, revenue from taxes collected on imported goods has grown dramatically so far in 2025. Customs duties, along with some excise taxes, generated US$152 billion (S$196 billion) through July, roughly double the US$78 billion netted over the same time period in fiscal year 2024, according to data from the US Treasury.

Indeed, Mr 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 in July, which are expected to cost the government at least US$3.4 trillion.

"The good news is that Tariffs are bringing Billions of Dollars into the USA!" Mr Trump said on social media shortly after a weak job report showed signs of strain in the labour market.

Over time, analysts expect that the tariffs, if left in place, could be worth more than US$2 trillion in additional revenue over the next decade. Economists overwhelmingly hope that does not happen and the US abandons the new trade barriers. But some acknowledge that such a substantial stream of revenue could end up being hard to quit.