US Budget Deficit Grows Amid Record Tariff Revenue

The US budget deficit surged by 20% for the fiscal year ending in July, despite unprecedented tariff revenue under President Donald Trump's administration. Treasury Department data reveals the complex dynamics shaping the nation's economy.

Customs revenue saw a dramatic 273% increase, or USD21 billion, compared to last year. However, the anticipated benefits of these tariffs have yet to significantly curb government overspending. Rising interest payments, cost-of-living adjustments to Social Security, and other expenditures continue to outpace revenue collection.

Even with a focus on trade negotiations and deal-making, including extending a tariff truce with China, the administration's ability to manage the deficit remains uncertain. Economic experts caution that while tariffs may generate income, their long-term impact on debt reduction is likely modest at best.

(With inputs from agencies.)