Treasury Secretary Scott Bessent said Tuesday that the billions of dollars being raised through new import tariffs will be directed toward reducing the U.S. national debt rather than immediately distributed to households.
Speaking on CNBC’s Squawk Box, Bessent dismissed the idea of near-term rebate checks, even though some lawmakers have suggested using tariff revenue to provide payments of at least $600 per adult and child. Such a plan could give a family of four roughly $2,400.
Since April, when President Donald Trump’s expanded tariffs on foreign goods took effect, the U.S. Treasury has collected around $100 billion, according to official data through July. Bessent noted that revenues are already surpassing expectations and could climb far above his earlier $300 billion estimate for the year. He emphasized that Trump’s priority, along with his own, is reducing the deficit and paying down national debt, although he left open the possibility of future dividends for Americans once progress is made on debt reduction.
Bessent also pointed to potential relief for households through lower borrowing costs if the Federal Reserve cuts interest rates. While the Fed has held rates steady since December, weaker job growth in recent months has increased speculation about a rate cut in September. However, those odds eased after the latest inflation report showed stronger-than-expected price pressures.
He argued that the inflation uptick reflected stock market gains more than underlying consumer costs, but cautioned that high interest rates are disproportionately affecting housing and lower-income households with significant credit card debt.
Bessent suggested that easing rates could boost home construction and help bring down housing costs over time. “If we continue to restrict home building, that’s only going to create more inflation in the next year or two,” he said.
Government data released in July showed that housing starts rose sharply by 5.2% from June, well above forecasts. That rebound followed three months of weakness in new residential construction.
