U.S. Tariff Income Update

By Andrea Shalal and David Lawder

WASHINGTON (Reuters) – Treasury Secretary Scott Bessent announced on Tuesday that the U.S. has collected around $100 billion in tariffs this year, potentially reaching $300 billion by the end of 2025 as collections increase due to President Donald Trump’s trade policies.

During a White House cabinet meeting, Bessent noted that major collections began in the second quarter when Trump implemented a nearly universal 10% duty on U.S. imports and increased tariffs on steel, aluminum, and automobiles.

> “So we could expect that that could be well over $300 billion by the end of the year,” Bessent said.

A Treasury representative clarified that the $300 billion goal refers to the end of the calendar year, December 31, 2025, not the government’s fiscal year, which ends on September 30.

Achieving $300 billion in tariff collections for this year would require a dramatic rise in incoming revenue and significant increases in tariffs across the board.

Bessent mentioned that the Congressional Budget Office predicts total tariff income of about $2.8 trillion over the next ten years, which he believes is likely an underestimate.

The Treasury revealed record gross customs duties of $22.8 billion in May, marking a nearly fourfold increase from $6.2 billion the previous year.

This boost brought customs duty collections for the first eight months of fiscal 2025 to $86.1 billion, while collections in the first five months of calendar 2025 totaled $63.4 billion.

The Treasury is set to release June budget results on Friday, expected to show another significant rise in tariff collections. As of June 30, combined customs and excise tax collections exceeded $122 billion for the fiscal year.

Trump has established a new deadline of August 1 for higher “reciprocal” tariffs applicable to almost all trading partners while allowing room for negotiations with some countries over the next three weeks.

“The big money will start coming in on August 1. I think it was made clear today by the letters that were sent out yesterday and today,” Trump stated.

Additionally, Trump announced during the cabinet meeting the imposition of a 50% tariff on copper imports—a crucial metal for sectors such as housing, consumer electronics, vehicles, the power grid, and military supplies. Further tariffs are also planned for semiconductors and pharmaceuticals.