Some U.S. lawmakers assert that tariff revenues can be used to reduce the federal deficit or repay public debt.
November 20, 2025
high
fiscal
Policymakers have proposed directing tariff income toward deficit reduction or debt repayment as a use of those funds.
Reductions in primary budget deficits reduce the need for government borrowing and therefore lower estimated interest costs on public debt.
high
process
Describes the general relationship between primary deficits, borrowing, and interest costs.