U.S. Treasury Secretary Scott Bessent said tariff proceeds will be directed toward paying down the federal government’s $37.2 trillion debt and cutting the deficit-to-GDP ratio. In a series of television interviews, Bessent added that he now expects tariff receipts in 2025 to come in “substantially” above the $300 billion estimate he gave earlier this year, although he did not provide a new figure. Treasury data show the government collected $29 billion in tariffs in July, lifting year-to-date revenue to about $156 billion. Bessent said the windfall would be applied to debt reduction before the administration considers any rebates or other uses, underscoring what he called a shared “laser focus” with President Donald Trump on fiscal consolidation. Roughly half of the revenue stems from duties of 50–55 percent on Chinese imports. Bessent said the current trade truce with Beijing—recently extended by 90 days to November—is “working pretty well,” noting that talks with Chinese officials were “very good” and could resume before the deadline.