WASHINGTON, DC – U.S. Treasury Secretary Scott Bessent says the current trade and tariff arrangement with China is “working pretty well,” signaling the administration’s intent to keep stability ahead of the November trade truce deadline. Bessent noted that China remains the largest source of U.S. tariff revenue, which has become a central part of the government’s fiscal strategy.
In recent interviews, Bessent raised his forecast for tariff revenues in 2025, now expecting them to exceed his earlier $300 billion estimate. He emphasized that this money will be directed toward reducing the federal debt rather than issuing rebate checks to Americans.
Credit agencies appear to be taking notice. S&P Global Ratings reaffirmed the U.S. government’s AA+ long-term rating with a stable outlook, citing tariff revenues as an offset to the costs of recent tax and spending measures. Meanwhile, other nations, including Brazil, continue to challenge U.S. trade probes, underscoring how the tariff strategy remains both a revenue tool and a flashpoint in global negotiations.
As talks approach key deadlines with Canada, Mexico, and China, U.S. leaders appear committed to maintaining current tariff levels while monitoring economic impacts.