President Donald Trump's tariffs "are likely to generate significant revenue" for the U.S., according to a nonpartisan organization committed to educating people on fiscal issues.
The Committee for a Responsible Budget (CRB) on Monday said the monthly tariff revenue in July jumped to $25 billion, up from $7 billion late last year.
The CRB also said Trump's tariffs will generate an estimated $1.3 trillion of net new revenue through the end of his term and $2.8 trillion through 2034, before accounting for economic effects. That's roughly $600 billion more than the tariffs in effect as of May.
"Those funds should be used for deficit reduction — not new tax cuts, spending, or rebates — and those who wish to reduce or reverse the tariffs should put forward alternative sources of deficit reduction to replace them," the CRB said.
The U.S. Trade Court has ruled some of these tariffs illegal, pending appeal. Even if the ruling is upheld, the remaining tariffs could raise $800 billion through 2034.
"Importantly, our estimates are very rough and intended to reflect the general magnitude of the policies rather than precise scores, given the complexity of the tariffs and their impacts," the group said.
"Estimates also exclude macroeconomic effects, which could reduce the net (real) deficit reduction from tariffs to the extent they lead to slower growth and higher inflation. Nonetheless, the recent tariff increases are likely to meaningfully reduce deficits if allowed to remain in effect or replaced on a pay-as-you-go (or Super PAYGO) basis."
Goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher on Aug. 7. Products from the EU, Japan, and South Korea are taxed at 15%, while imports from Taiwan, Vietnam, and Bangladesh are taxed at 20%.
Before the first Trump administration, tariffs generated about $3 billion per month, according to the CRB. Largely due to tariffs put in place under Trump from 2017-2021 — including on Chinese goods and steel and aluminum — monthly tariff revenue grew to about $7 billion per month in 2024.
The CRB said it expects tariff revenue to grow and ultimately rise to $40 to $50 billion per month (over 1.5% of GDP) before declining some as supply chains adjust.
"If policymakers want to remove the tariffs going forward, they should put forward alternative revenue sources or spending cuts to avoid worsening an already unsustainable fiscal outlook," the CRB said.
The Associated Press contributed to this story.
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Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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