America Will Earn Billions to Pay Off Debt, Says Trump on Tariff Revenue
Washington, August 3, 2025: US President Donald Trump on Monday defended his decision to impose reciprocal tariffs on several countries, including India, calling it a long-overdue step. Trump said the revenue generated from these tariffs would be used to pay off America’s debt.
Speaking to the media, Trump said, “We are going to pay off loans. We are generating more revenue than ever before in our country’s history. One of the main goals behind what we’re doing is to reduce the debt. We should have taken this step many years ago. In my first term, I imposed tariffs on China, but due to COVID, I couldn’t take similar action against others.”
“Billions of Dollars Will Be Earned”
Trump emphasised that he wanted fairness and transparency in trade, without external pressure. “Wherever possible, we want mutual benefit. Sometimes, that brings huge advantages. These tariffs will generate an enormous amount of money, and I can assure you our country will earn hundreds of billions of dollars,” he said.
Major Economic Policy Changes
Returning to the White House for his second term in January, Trump implemented significant changes to US economic policy. He decided to penalise countries that imposed unilateral tariffs on the US while securing large concessions from nations agreeing to reciprocal tariffs.
When Did Trump Announce the Tariffs?
On April 2, Trump announced a 50% reciprocal tariff on imports from countries with which the US had a significant trade deficit. Additionally, he imposed a 10% baseline tariff on all nations. He cited the 1977 law that allows declaring a trade deficit as a national emergency, justifying the sweeping import duties. The move triggered global reactions, prompting Trump to allow a 90-day negotiation period before fully enforcing the tariffs.
Different Tariffs for Different Countries
Under the new policy, Trump imposed tariffs ranging from 10% to 50% on 69 countries:
Syria: 41%
Canada: 35%
Brazil: 50%
India: 25%
Switzerland: 39%
Taiwan: 20%
Earlier, the US had imposed a 29% tariff on Pakistan, which was later reduced to 19% following a crude oil deal.
