Trump’s sweeping tariffs to rake in billions as Treasury vows revenue will pay down US debt first

US Treasury Secretary Scott Bessent said he expects a big jump in revenues from sweeping tariffs imposed by President Donald Trump and says the money will be used first to start paying down the federal debt, not to give rebate cheques to members of the public.

Mr Bessent, speaking in an interview with CNBC, said he expected to substantially revise upward his earlier estimate of $US300 billion ($A464 billion) in revenues from the tariffs but declined to be more specific.

Mr Bessent said he had not spoken with Mr Trump about the idea of using funds from the tariffs to create a dividend for citizens, but stressed that both of them were “laser-focused” on paying down the debt.

Today, @CommerceGov added 407 product categories to the list of steel and aluminium-containing products covered by Section 232 tariffs. As a result, the steel and aluminium content of these products will be subject to a duty rate of 50 per cent

“I’ve been saying that tariff revenue could be $US300 billion this year. I’m going to have to revise that up substantially,” Mr Bessent said.

“We’re going to bring down the deficit to GDP. We’ll start paying down the debt, and then at that point, that can be used as an offset to the American people.”

The US economy could return to the “good, low-inflationary growth” of the 1990s, Mr Bessent said, but he blamed higher interest rates for problems plaguing some pockets of the economy, singling out housing and lower-income households with high credit card debt.

The US Commerce Department on Tuesday said it was hiking steel and aluminium tariffs on more than 400 products, including wind turbines, mobile cranes, bulldozers and other heavy equipment along with railcars, furniture and hundreds of other products.

The department said 407 product categories are being added to the list of “derivative” steel and aluminium products covered by sectoral tariffs, with a 50 per cent tariff on any steel and aluminium content of these products.

The department is also adding imported parts for automotive exhaust systems and electrical steel needed for electric vehicles to the new tariffs.

A group of foreign car makers had urged the department not to add the parts, saying the United States does not have the domestic capacity to handle current demand.

The new tariffs take effect immediately and also cover compressors and pumps.

“Today’s action expands the reach of the steel and aluminium tariffs and shuts down avenues for circumvention - supporting the continued revitalisation of the American steel and aluminium industries,” Under Secretary of Commerce for Industry and Security Jeffrey Kessler said.

Steelmakers, including Cleveland Cliffs and others, had petitioned the administration to expand the tariffs to include additional steel and aluminium car parts.