Bessent Says Tariff Revenue Could Help Pay Down $37.2 Trillion National Debt

The Trump administration is signaling that rising tariff revenues could play a key role in chipping away at America’s record-high $37.2 trillion national debt. Treasury Secretary Scott Bessent confirmed Tuesday that the administration is considering directing some of the federal government’s tariff windfall toward paying down the debt—an ambitious move aimed at reducing Washington’s chronic overspending.

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“I think at a point we’re going to be able to do it,” Bessent said in a CNBC interview. He added that both he and President Donald Trump are “laser-focused on paying down the debt,” highlighting what could become a cornerstone of the administration’s fiscal agenda.

The U.S. collected more than $29 billion in tariff revenues in July alone—the single largest monthly total so far in 2025. According to Treasury Department data, tariff revenues have already topped $156.4 billion this year, a pace that could push collections far beyond the administration’s initial $300 billion projection. Bessent hinted that a “substantially” higher revision is now in the works.

President Trump celebrated the surge in tariff revenue earlier this month, calling it “so beautiful to see” as billions in new funds poured into the federal treasury. For Trump, the revenue is more than just an accounting figure—it is proof that his trade policies are working as designed.

The growing tariff haul comes at a time when America’s debt load has reached staggering new heights. As of August 18, the U.S. debt stood at $37.2 trillion—roughly $111,000 per American citizen. With debt continuing to climb, Republicans argue that Washington can no longer ignore the fiscal time bomb.

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Bessent outlined a three-step vision: first, bringing down the deficit-to-GDP ratio; second, starting to pay down debt directly; and eventually, using reduced debt burdens as “an offset for the American people.” That last point suggests a potential long-term goal of lowering taxes once debt is under better control.

Critics, however, caution that tariffs function as taxes on imports—meaning U.S. companies bear the direct cost, often passing it along to consumers through higher prices. While the administration sees tariffs as a revenue tool that strengthens America’s financial position, skeptics warn that middle-class families may feel the pinch through costlier goods.

Still, supporters counter that the strategy has a dual benefit: discouraging reliance on foreign imports while simultaneously generating revenue that can be applied to the debt crisis. To many conservatives, it represents a long-overdue attempt to restore fiscal sanity in Washington by turning the tables on trading partners and making global competitors shoulder part of America’s financial burden.

Whether tariff revenue alone can make a meaningful dent in a $37.2 trillion debt is another question. But what is clear is that the Trump administration is elevating the conversation around fiscal responsibility—something rarely heard in Washington’s free-spending culture.

For now, the surging tariff receipts are giving the White House new momentum in its push to rein in deficits. If Bessent and Trump follow through, tariffs could mark the beginning of a serious attempt to reverse America’s debt spiral—a goal conservatives have demanded for decades.