Tariff revenue could spell income tax relief for Americans: Treasury Sec

Treasury Secretary Scott Bessent on Tuesday said that revenues from tariffs will be able to provide income tax relief and made a number of points addressing countries getting to better trade deals with the United States.

When asked what President Donald Trump's plan was with the tariffs, to either increase tax revenues for the US or create better trade deals with other countries, Bessent said that the administration is aiming for both points.

"So we're going to take in long term tariff revenue. We put a process in place. We have 18 important trading relationships. We will be speaking to all of those partners, or at least 17 of them, over the next few weeks, many of them have already come to Washington. What President Trump is referring to is the ability for tariff revenue to give income tax relief.

"And I think there's a very good chance that we will see this in the upcoming tax bill. The President campaigned on no tax on tips, no tax on Social Security, no tax on overtime, and restoring interest deductibility for autos, for American made autos, so tariff income could be used for tax relief on all those immediately," Bessent added.

When asked if there was a "role for significant tariff revenue in US fiscal policy," Bessent answered that tariffs will be able to "bring back American manufacturing and generate substantial revenues" in the US.

In addition to addressing the topic of tariff revenue, Bessent said there has been record investment in manufacturing industry in the US. When he was asked about the negotiations with different countries, the Treasury Secretary said that China stands to lose 10 million jobs if Trump's tariffs are kept on goods from that nation, indicating that China may be forced to make a better trade deal with the US to lower the import tax.

Additionally, Bessent said that a better trade deal with India is "moving along well."