Last Friday, U.S. Treasury Secretary Scott Bessent took a victory lap as his department reported an unexpected increase in receipts from tariffs. The revenue undoubtedly came from a surge in imports to the U.S., which led to payments that filled federal coffers. It would seem to be a win for an administration that has staked an awful lot on waging a trade war with the entire planet to (take your pick) redress wrongs done to America, raise revenue for the government, and encourage domestic manufacturing and employment. But that victory lap comes too soon; the tariff windfall more likely represents efforts by U.S. firms to accumulate inventory before tariff rates rise even higher.
Big Revenues From a Surge in Imports
"Another promise made. Another promise kept," Bessent boasted on X. "As President Trump works hard to take back our nation's economic sovereignty, today's Monthly Treasury Statement is demonstrating record customs duties – and with no inflation!"
