The US government collected $264 billion in tariff revenue in 2025. This represents a 234% increase from the $185 billion collected in 2024.
In December alone, tariff revenue reached $28 billion, a 300% jump compared to the same month in the previous year. This followed monthly collections of $31 billion in both October and November.
The average monthly tariff revenue for the second half of the year was $30 billion. If this trend continues, tariff revenue could reach $360 billion in 2026, marking a 36% year-on-year increase.
This significant increase in revenue began shortly after Donald Trump returned to office in 2024. Upon his return, he implemented new trade policies, utilizing the International Emergency Economic Powers Act to impose tariffs on countries including China, Canada, Mexico, and the EU.
Furthermore, Trump invoked Section 232, leading to additional duties on a range of goods such as cars, trucks, steel, semiconductors, lumber, copper, aluminum, furniture, and pharmaceuticals.
Trump Tariffs Impact Households and Boost Federal Tax Revenue
These tariffs have led to increased costs for American households, with the average tax increase per household estimated at $1,100 for 2025 and projected to rise to $1,500 in 2026. Should the courts invalidate Trump's emergency powers, these increases could potentially be reduced to $300 and $400, respectively.
In addition to direct tax increases, consumers are facing higher prices for goods. The average applied tariff rate on all US imports has reached 15.8%, with the effective rate, which accounts for changes in consumer purchasing behavior, standing at 11.2%.
This marks the highest tariff rate since World War II. The Trump tariffs have also resulted in the largest federal tax hike as a share of GDP since 1993, accounting for 0.47% in 2025.
While these tariffs are projected to generate $2.2 trillion in revenue over the next decade, this figure does not account for the broader economic consequences.
According to the Tax Foundation, when the economic damage is factored in, the projected revenue over ten years decreases to $1.7 trillion. Their analysis indicates that Section 232 tariffs could bring in $608 billion, but this amount falls to $453 billion after considering the economic fallout. Similarly, IEEPA tariffs are projected to yield $1.5 trillion on paper, which reduces to $1.2 trillion after accounting for economic losses.
The Tax Foundation's analysts also noted that "The negative effect of foreign retaliation lowers revenue even more. Add that in, and we’re down another $146 billion over the decade."
The future of this tariff framework is currently pending a Supreme Court ruling. The court will determine the legality of Trump's use of IEEPA to impose tariffs. A decision against the administration could significantly reduce the expected revenue from these new taxes.
Starting September 1, 2025, some countries began imposing their own tariffs on US goods in retaliation, a response that is expected to reduce projected revenue by $146 billion over ten years.
The economic impact extends to household incomes. In 2026, after-tax income is predicted to decrease by 0.3% for Americans under the Section 232 tariffs and by 0.9% under the IEEPA tariffs. While higher-income households may experience less impact, these tariffs are already contributing to financial strain for many.