US could collect US$300 billion in tariff revenue this year: Treasury chief say
Bessent, speaking to a White House cabinet meeting, said the major collections from Trump's new tariffs only started during the second quarter, when Trump implemented a near universal 10 per cent duty on US imports and boosted duties on steel, aluminum and autos.
'So we could expect that that could be well over US$300 billion by the end of the year,' Bessent said.
A Treasury spokesperson said the US$300 billion target corresponds to the December 31 end of calendar 2025, not the end of the government's fiscal year on September 30.
Reaching US$300 billion in tariff collections this year would imply an exponential increase in collections in coming months and steep and broad tariff increases from current levels.
Bessent added that the Congressional Budget Office has estimated tariff income will total about US$2.8 trillion over 10 years, 'which we think is probably low.'
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The Treasury reported record gross customs duties of US$22.8 billion in May, a nearly fourfold increase from the US$6.2 billion total a year earlier.
That brought customs duty collections for the first eight months of fiscal 2025 to US$86.1 billion. Collections for the first five months of calendar 2025 totaled US$63.4 billion.
The Treasury is due to report June budget results on Friday, which are expected to show another substantial increase in tariff collections.
As of June 30, combined customs and excise tax collections topped US$122 billion for the fiscal year to date, according to the Daily Treasury Statement of accounts.
Trump has set a new Aug 1 deadline for higher 'reciprocal' tariff rates set to kick in on nearly all trading partners, with room for negotiations with some countries in the next three weeks for deals to bring them lower.
'The big money will start coming in on Aug 1. I think it was made clear today by the letters that were sent out yesterday and today,' Trump said.
Trump also announced during the same cabinet meeting that he would impose a 50 per cent tariff on copper imports, a metal used in everything from housing to consumer electronics, vehicles, the power grid and military hardware. He also said further tariffs were coming on semiconductors and pharmaceuticals. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
29 minutes ago
- Straits Times
US senators aim to arm Trump with ‘sledgehammer' sanctions against Russia
Sign up now: Get ST's newsletters delivered to your inbox US President Donald Trump said he would be open to the sanctions bill as relations with Russian counterpart Vladimir Putin grow frosty. WASHINGTON - US senators on July 13 touted a bipartisan bill that would arm President Donald Trump with 'sledgehammer' sanctions to use against Russia, ahead of a visit by the US special envoy to Ukraine. Mr Trump has indicated he would be open to the sanctions bill as relations with Russian counterpart Vladimir Putin grow increasingly frosty. US special envoy Keith Kellogg is due to begin his latest visit to Ukraine while Mr Trump said he would make a 'major statement... on Russia' on July 14. Republican Senator Lindsey Graham said he had majority backing in the Senate for his bill, which was gaining momentum as Washington-led peace efforts in Ukraine have struggled to make headway. The bill would allow Mr Trump 'to go after Putin's economy, and all those countries who prop up the Putin war machine,' Mr Graham told broadcaster CBS news. Mr Trump, who has repeatedly said he is 'disappointed' with Mr Putin as Moscow unleashed deadly barrages of missiles against Kyiv, has hinted he might finally be ready to toughen sanctions. Mr Trump held off for the past six months while he tried to persuade Mr Putin to end the war. But the Republican president's patience appears to be wearing thin, telling reporters during a cabinet meeting at the White House on July 8 that Mr Putin was talking 'a lot of bullshit' on Ukraine. Last week, Mr Trump also agreed to send Mr Zelensky more weapons, including through a deal with Nato which would involve the alliance purchasing US weapons to send to Ukraine. On July 10 , Mr Trump appeared to back the bill without detailing whether he would use it to slap sanctions on Moscow. 'They're going to pass a very major and very biting sanctions bill, but it's up to the president as to whether or not he wants to exercise it,' Mr Trump told broadcaster NBC. Asked during a cabinet meeting about his interest in the bill, Mr Trump said: 'I'm looking at it very strongly.' 'This congressional package that we're looking at would give President Trump the ability to impose 500 per cent tariffs on any country that helps Russia,' said Mr Graham, adding that those could include economies that purchase Russian goods like China, India or Brazil. 'This is truly a sledgehammer available to President Trump to end this war,' said Mr Graham. 'Without a doubt, this is exactly the kind of leverage that can bring peace closer and make sure diplomacy is not empty,' the Ukrainian leader said about the proposed bill in an X post. Mr Graham and Democratic Senator Richard Blumenthal were to meet Nato Secretary General Mark Rutte on th e night of July 1 4. Mr Blumenthal told CBS news they would also discuss the legally thorny issue of unlocking frozen Russian assets in Europe and the United States for access by Ukraine. 'The US$5 billion (S$6.4 billion) that the United States has also could be accessed, and I think it's time to do it,' said Mr Blumenthal. AFP
Business Times
an hour ago
- Business Times
Bank of England governor Bailey warns banks against issuing own stablecoins
[LONDON] Bank of England governor Andrew Bailey has warned the world's largest banks against issuing their own stablecoins, setting up a potential clash with US President Donald Trump's administration and its backing of the digital assets. Speaking in an interview with the Times newspaper, Bailey said he 'would much rather' banks offer digital versions of traditional money, known as tokenised deposits, than stablecoins, which are designed to hold a steady value and are usually pegged to a traditional currency. Bailey also warned that stablecoins threaten to take money out of the banking system and leave less funds available for lending, according to the Times interview. The governor is also chair of the Financial Stability Board, which is responsible for monitoring risks in financial markets globally. His stance is at odds with the direction being taken by the US under Trump, which has passed stablecoin legislation setting up regulatory rules for cryptocurrencies pegged to the US dollar. A Trump-affiliated stablecoin already has a US$2.2 billion market value. Bailey's concerns have been echoed by other central bankers, who have called for laws regulating stablecoin companies in much the same way as banks. They worry about issues such as the risk of stablecoin crashes, which could trigger fire sales of their underlying assets, and the prospect of vast sums changing hands outside of the formal banking system, enabling crimes such as money laundering. Bailey also hinted that he did not want the UK to adopt a central bank digital currency (CBDC), known as the digital pound. He said it would be 'sensible' for the UK to head towards digitising deposits instead of issuing a CBDC in response to private sector stablecoins. BLOOMBERG
Business Times
2 hours ago
- Business Times
US markets grapple with tariffs as bullish trends emerge
US equity markets showed a mixed mid-day performance on Thursday (Jul 10) as investors weighed President Donald Trump's new tariff policies. The Nasdaq declined, led by weakness in software stocks, while the broader market held steady, buoyed by a prior session's record high for the index, driven by strength in the artificial intelligence (AI) sector. Tensions escalated with Trump's announcement of a 50 per cent tariff on Brazilian imports and copper, effective Aug 1. The move, linked to political disputes involving his ally, former president Jair Bolsonaro, drew a strong response from Brazil's current President Luiz Inacio Lula da Silva and heightened concerns of a potential trade conflict. Economic data highlighted resilience, with initial jobless claims falling below expectations to 227,000 last week. However, minutes from the Federal Reserve's (Fed) June meeting revealed a cautious stance, with few policymakers supporting an immediate rate cut due to inflation concerns tied to new tariffs. Despite this, Trump pushed for rate reductions on Thursday via Truth Social, citing tech and industrial stock gains, a cryptocurrency surge, and tariff revenue, claiming economic strength, yet the Fed's wait-and-see approach suggests uncertainty as the week draws to a close. Market outlook and technical analysis My analysis points to a bullish outlook for the US markets as of Jul 11, driven by converging business, sentiment, and structural cycles. The economy shows mid-to-late growth with strong earnings and no clear signs of recession. Investor sentiment is turning positive without reaching excessive levels, while low volatility mirrors conditions seen during the 1990s digital boom. I anticipate a summer rally, fuelled by advances in AI, banking and commodities. Investors are encouraged to follow this momentum, as declining inflation and potential Fed easing could lift valuations, though external shocks might trigger a correction, suggesting a focus on price trends heading into late 2025. The Nasdaq 100 Index confirms a robust medium-to-long-term uptrend, as it has reclaimed its ascending channel since May 2025, reflecting sustained buyer interest at progressively higher levels and signalling a positive market trajectory. The index faces immediate resistance between 24,000 and 24,500, aligning with the upper boundary of this channel, while support resides near 22,200, offering a critical buffer against downturns. With momentum indicators reinforcing this bullish structure, the Nasdaq 100 is assessed as technically positive for the medium-to-long term. The writer is equities specialist at Phillip Securities Research
