Tariffs May Raise Prices Slightly But Will Deliver Tax Relief for Bottom 50 Percent, Bessent Says

Money generated by the tariffs will fund proposals to scrap taxes on tips, overtime, and Social Security benefits, the Treasury secretary says.

Treasury Secretary Scott Bessent speaks to reporters outside the West Wing of the White House on March 13, 2025. Andrew Harnik/Getty Images

Treasury Secretary Scott Bessent said consumers could see a one-time price increase of about 2 percent for every 10 percent of new tariffs imposed on foreign goods, and that the revenue from tariffs would be used to reduce living costs for lower-income Americans.

He noted that under President Donald Trump’s first term, the actual inflationary impact of tariffs was significantly lower.