Tariffs aren't meant for revenue and will shrink over time, Bessent says

"Just Sunday morning, he promised tariffs would pay down the national debt and fund a $2,000 dividend for most Americans. Administration officials have frequently talked about tariff receipts of up to $1 trillion a year offsetting deficits a decade from now. The big picture: The tension about tariffs' true purpose was evident at the Supreme Court this week, as the government attempted to defend Trump's authority to impose them."

"Trump imposed sweeping tariffs under the International Emergency Economic Powers Act, a 1977 law that empowers presidents to respond to national security threats but had never been used for tariffs before. Justices appeared highly skeptical of the argument that tariffs aren't a tax and don't have revenue as their primary purpose. If the court rules against the administration, that would toss potentially hundreds of billions of dollars a year in revenue out the window."

""Over the course of the next few years, we could take in trillions of dollars ... but the real goal of the tariffs is to re-balance trade and make it more fair," Bessent told ABC's "This Week," touting the eventual benefits of manufacturers re-shoring their operations in the U.S. "What would happen over time is, we would take in substantial money as factories come back to the U.S.," he said."

President Trump promised tariffs would pay down the national debt and fund a $2,000 dividend for most Americans. Administration officials have projected tariff receipts as high as $1 trillion annually offsetting deficits within a decade. The tariffs were imposed under the International Emergency Economic Powers Act of 1977, a law previously unused for tariffs, and the Supreme Court expressed skepticism that the tariffs are not a tax with revenue as their primary purpose. A ruling against the administration could eliminate potentially hundreds of billions in annual revenue. Officials argue tariffs aim to rebalance trade, encourage reshoring, and shift revenue sources over time.

Read at Axios