U.S. Customs Revenue Tops $100 Billion for First Time Amid Tariff Surge
US revenue from customs duties this fiscal year surpassed $100 billion for the first time, reflecting higher tariffs imposed by the Trump administration.
During a recent Senate Armed Services Committee hearing, Arizona Senator Mark Kelly, a Navy combat veteran and the only U.S. Merchant Marine Academy graduate in Congress, emphasized the critical need to bolster America’s maritime capabilities to compete with China.
Kelly highlighted the stark stressed between the United States and China in terms of maritime strength, pointing out that China controls over 5,500 merchant ships worldwide, while only 80 merchant ships fly under the American flag in international commerce.
In addressing witness Lt. General Randall Reed, the nominee for Commander of US Transportation Command, Kelly stressed the severe national security risks posed by this maritime capability gap, arguing that insufficient commercial maritime capacity not only impacts peacetime trade and supply chains but could also hamper the ability to supply troops in a conflict.
“We need investments now to be ready for tomorrow,” Kelly stated. “That’s why I’m developing legislation to rebuild our commercial maritime industry, and our US flagged international fleet.”
Responding to Senator Kelly, General Reed acknowledged the importance of the commercial maritime industry to USTRANSCOM’s mission. “If confirmed as a TRANSCOM commander, there is no way that I can do my mission without the commercial industry,” he said.
“The fact that you just mentioned legislation, I’m not sure what’s in it, but I think that absolves me of one instance of asking for help from this committee. I know that we need to grow that force. That force is very vital,” General Reed added.
Kelly’s efforts to address this issue extend beyond the hearing, having led bipartisan and bicameral initiatives to enhance maritime capacity, including authoring the Congressional Guidance for a National Maritime Strategy and introducing the “Strategic Ports Reporting Act of 2024.”
You can watch Kelly’s questioning during the hearing below:
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