New tariffs are expected to raise $84 billion a month in revenue for the US

US tariff revenue since Donald Trump took office is more than US$100 billion.

United States tariffs have finally taken effect, setting the stage for upheaval in global trade and new costs for businesses and consumers.

They may also bring in a significant amount of new revenue to the US, according to Trump Administration officials.

Republicans in Washington have been hopeful that President Donald Trump’s tariff policies would bring in money that can help offset a new tax law that is expected to add more than US$3.4 trillion to US debt over the next 10 years.

Here’s what you need to know about how tariffs raise money and who pays for it.

How much money have tariffs raised?

The new taxes on imports are expected to bring in at least US$50 billion ($84b) every month, Commerce Secretary Howard Lutnick told Fox Business.

Tariffs that have already been implemented brought in US$30b last month, Lutnick said, adding that forthcoming tariffs on semiconductors and pharmaceuticals could mean the total proceeds will “ultimately reach US$1t”.

“Those are amazing numbers,” he said.

“Everybody understands you’ve got to sell to the American consumer. The American consumer is the most powerful factor on the Earth for the economy, and Donald Trump is harnessing it for the benefit of the American people.”

Customs and Border Protection, the US agency responsible for collecting tariff revenue, reported in late June that it had collected US$81.5b in tariff revenue since Trump took office.

That money largely comes from companies importing goods into the US - which can often get passed down to American consumers.

Who gets the money from US tariffs?

Companies that import products into the US usually pay for the cost of tariffs, which are collected at ports of entry by US Customs and Border Protection.

That money goes into the general fund, which can be used however Congress designates it should be spent.

Trump and most Republicans have said the primary use for tariffs will be to pay for a portion of the country’s US$1.3t deficit.

The President has also floated the idea of sending rebate cheques back to Americans using tariff revenue, which would require Congress to pass a bill to do so.

Has the US used tariffs like this before?

The tariffs put in place under the Trump Administration are the largest the US has imposed since the Great Depression.

In 1930, as industries across the US suffered in the economic downturn, Congress approved the Smoot-Hawley Tariff Act, which implemented high tariffs on tens of thousands of goods to protect American companies.

It prompted retaliation from other countries and slowed world trade.

Former President Franklin Delano Roosevelt ran on lowering tariffs in 1932, and Congress gave the president more power to negotiate deals with other countries on tariffs in 1934.