U.S. Tariff Receipts Soar Past $31 Billion in August, Setting New Monthly Record

According to the Treasury Department’s latest figures through August 29, fiscal‐year‐to‐date tariff proceeds have reached $183.56 billion. Treasury Secretary Besant highlighted that the Congressional Budget Office projects former President Trump’s tariff measures could shrink the federal deficit by approximately $4 trillion over the next decade—comprised of $3.3 trillion in direct deficit reduction and $700 billion in lower interest expenses, surpassing earlier estimates of $2.5 trillion.

Last week, Secretary Besant revised upward his forecast for annual tariff revenue, suggesting it could exceed $500 billion and potentially approach $1 trillion. He remarked on August 26 that this administration has already “made a substantial impact on the budget deficit” through its tariff policy.

However, a U.S. federal appeals court ruled last week that most of the current administration’s tariffs exceeded the authority granted under the International Emergency Economic Powers Act. That decision, which takes effect October 14, gives the White House a narrow window to appeal to the Supreme Court.

On September 2, President Trump announced plans to ask the Supreme Court to expedite its review of the appeals court ruling. He warned journalists that without the tariffs in place, “the country would face serious difficulties,” and credited the tariff policy with attracting nearly $17 trillion in investment.

Secretary Besant has also indicated that if the Supreme Court does not uphold the administration’s emergency‐powers justification, the executive branch retains other statutory avenues for imposing import duties—albeit with potentially less speed and impact. He expressed confidence that the Court will affirm the president’s authority but noted the availability of alternative measures.

Market observers have suggested that the administration may turn to a “Plan B” under Section 232 of the Trade Expansion Act, which grants the president explicit power to impose trade restrictions, including tariffs, on imports deemed harmful to national security. As a more established legislative tool, Section 232 could enable the government to broaden its tariff coverage and maintain its trade agenda even if the emergency‐powers route is curtailed.