Trump Pledges Tariff Revenue To Slash Debt, Hints At“Dividend” For Americans

(MENAFN- AzerNews) President Trump has laid out a dual strategy for the revenue generated by his tariff policy. On one hand, he intends to use it to chip away at America's $37 trillion national debt. On the other hand, he is weighing the possibility of distributing some of the money directly to the public.

“The purpose of what I'm doing is primarily to pay down debt, which will happen in very large quantities,” Trump told reporters earlier this month.“But I think there's also a possibility that we're taking in so much money that we may very well make a dividend to the people of America.”

While the proposal may sound appealing, the numbers present a sobering reality. Tariff income still falls far short of even covering monthly interest payments on the debt. In July alone, Treasury data shows interest costs of nearly $61 billion across various securities-more than double the $29.6 billion collected from tariffs during the same period.

Although Treasury is running a limited bond buyback program to reduce obligations, the planned $40 billion in purchases for August 2025 is actually $10 billion lower than under the Biden administration a year earlier. Even if Trump dedicated $30 billion in tariffs every month, the total annual sum of $360 billion would barely scratch the surface of the national debt, amounting to less than 1%.

Economists remain divided on whether aggressively paying down debt is even necessary, with some arguing that the U.S. can manage its obligations through growth, market stability, and monetary policy. Still, high-profile voices like JPMorgan Chase CEO Jamie Dimon warn of an impending fiscal crisis, while Fed Chair Jerome Powell has urged a frank national debate about the trajectory of America's finances.

The White House insists progress is already being made, pointing to a decline in the debt-to-GDP ratio since Trump took office, coupled with strong revenue from tariffs, lower inflation, and an outlook for falling interest rates.

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