Treasury Secretary Scott Bessent Plans to Use Tariffs to Pay Debt

Treasury Secretary Scott Bessent announced that the Trump administration is considering applying tariff revenue toward the reduction of the United States national debt. In an interview with CNBC on August 19, 2025, Bessent stated that he and President Donald Trump are focused on lowering the deficit-to-GDP ratio to eventually pay down the debt.

Bessent expects this year's tariff revenue to be substantially higher than the previous $300 billion projection. Data from the United States Department of the Treasury shows total tariff revenues reached $156.4 billion as of August 15, with July alone contributing over $29 billion. This revenue surge comes as the national debt approached $37.2 trillion on August 18.

While the administration views these funds as a windfall for debt reduction, the costs are borne by U.S. businesses and frequently passed to consumers through higher prices.