The U.S. Treasury Secretary stated on Thursday that the months of August and September will be a key test to measure the economic impact of the tariff policy promoted by President Donald Trump’s administration.
According to his estimates, the country could collect more than $300 billion in tariff revenues, which represents roughly 1% of the Gross Domestic Product (GDP). The official noted that, although he prefers to take a conservative approach in his projections, he does not rule out the possibility of substantially revising that figure upward if current trends continue.
Reducing the Fiscal Deficit
In his remarks, he explained that at the beginning of the Trump administration, the deficit-to-GDP ratio stood between 6.5% and 6.7%, one of the highest levels recorded in peacetime and outside of a recession. However, he emphasized that tariff revenues could bring that figure down into the 5% range, marking an important step toward fiscal consolidation.
The Treasury Secretary highlighted that this development aligns with the central goal of the administration: bringing the deficit back down to 3% of GDP, the long-term historical average, before President Trump leaves office.
A Strategic Shift in Economic Policy
These statements reflect the White House’s strategy of using trade policy not only to balance accounts with competing nations but also to strengthen domestic financial stability.
In conclusion, the Secretary reiterated that the tariff revenue strategy is not only aimed at improving fiscal balances but also at protecting long-term economic growth, reinforcing the vision that a reduced deficit is essential to ensuring the strength of the U.S. economy.
