Trump’s tariffs bring in record revenue, could reduce deficit by $4T, but will American households pay the price?

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The good news is that this additional money coming in should help reduce the national deficit.In January, before President Donald Trump’s tariffs were announced, the Congressional Budget Office (CBO) had projected that customs revenues would total $80 billion in fiscal year 2025, which is close to the average of the previous five years.Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPRobert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’Now, the U.S. Department of the Treasury reports that Trump’s customs duties have pulled in $195 billion. Almost $30 billion was collected in July alone, per Treasury reports."Historically, tariff revenue has never accounted for more than about 2% of total federal government revenues in the modern era.” Shai Akabas, the vice president of economic policy at the Bipartisan Policy Center, told NPR (1). “And with the tariffs that are in place today, that could go up to 5% or perhaps even higher."Meanwhile, the CBO says this means there will be a greater budgetary effect as well.According to a recent report from the federal agency:“We project that increases in tariffs implemented during the period from January 6, 2025, to August 19 will decrease primary deficits (which exclude net outlays for interest) by $3.3 trillion if the higher tariffs persist for the 2025‒2035 period.”When combined with the reduced need for federal borrowing, this tariff revenue will reduce federal interest costs by an additional $0.7 trillion. Ultimately, the report projected a combined total of $4 trillion in reduced deficits due to the tariff changes between now and 2035.While these numbers look promising on the surface, there’s more at play. The CBO says the changes in the tariffs will shrink the size of the U.S. economy due to reduced investment and productivity while making goods more expensive.Ultimately, someone has to pick up the tab. That could end up being the American consumer.Of course, it's also important to note that a U.S. appeals court has ruled that most of Trump's tariffs were illegal. 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