Bessent: “It’s very likely that the U.S. budget deficit will reach its peak under the Trump administration.”

Treasury Secretary Scott Bessent said Thursday that it is “very likely” that the U.S. budget deficit has peaked under President Donald Trump.

“We’re going to be extremely focused,” Bessent told CNBC in an exclusive interview a day after the division’s unusual debt buyback announcement.

The U.S. monthly budget deficit exceeded $432 billion in July, the highest level in more than a decade, the Treasury Department announced last week. The fiscal year-to-date gap widened to about $1.8 trillion, more than at the same time a year ago, according to its monthly report.

The Treasury Department announced this week that the mountain of U.S. government debt to finance these deficits has reached a new record of more than $40 trillion. That total has more than doubled in the past decade, further raising concerns about the country’s fiscal health.

Mr. Bessent himself said Mr. Trump and Office of Management and Budget Director Russell Vought are among federal government leaders working on fiscal consolidation measures. Bessent said such efforts could save hundreds of billions of dollars.

The White House has touted its goal of imposing broad and costly tariffs on trading partners as a revenue-raising measure that would reduce the national debt. However, these levies have encountered repeated legal obstacles, most notably the Supreme Court’s decision to cancel many of them.

But Bessent said despite the challenges, he expected customs revenue this year to be about the same level as in 2025 after the surcharge is reintroduced. There is no need to return these revenues to companies this time, he said.

“There’s nothing magical about the 40 trillion number,” Bessent said. “We can grow our way out of it.”