Record Customs Duties Propel U.S. to Budget Surplus Despite Rising Deficit
U.S. gross customs duties reached a record $27.2 billion in June, largely due to President Trump's tariffs. This contributed to a rare federal budget surplus of $27 billion for the month. However, the overall fiscal year's deficit increased by 5% to $1.337 trillion, driven by rising health care, Social Security, and defense spending.
The U.S. Treasury unveiled a significant financial milestone this Friday, reporting that gross customs duties surged to an unprecedented $27.2 billion in June. This windfall, courtesy of President Donald Trump's escalating tariffs, coupled with calendar adjustments, resulted in a rare federal budget surplus of $27 billion for the month.
Despite this surplus, fiscal health on a larger scale shows a more intricate picture. Adjusting for calendar shifts, the Treasury indicated that June would have displayed a $70 billion budget deficit. The overall annual deficit remained on the rise, jumping 5% to $1.337 trillion, as increases in health care, Social Security, and defense spending continue to mount.
With ambitions to collect $300 billion in tariffs by the end of 2025, the Trump administration aims to implement steeper, wide-ranging tariffs. Treasury Secretary Scott Bessent suggested this aggressive tariff strategy could significantly boost revenues, but the long-term fiscal impact remains uncertain.
(With inputs from agencies.)
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