Soaring Deficit: U.S. Financial Strains Mount Amidst Tariff Surge
The U.S. budget deficit expanded by 20% in July to $291 billion, fueled by rising customs duties from tariffs and increased government spending. Treasury data reveals July receipts at $338 billion, while outlays reached $630 billion. The first 10 months of the fiscal year report a $1.629 trillion deficit.
The United States witnessed a significant upsurge in its budget deficit for July, reaching a staggering $291 billion. This 20% hike partly stemmed from enhanced customs duties owed to tariffs instituted under the Trump administration. Despite an increase in collections, government spending surpassed receipts.
The Treasury Department reported that July's receipts rose by 2% to $338 billion despite fewer business days compared to the previous year. Simultaneously, government outlays saw a historic 10% increase to $630 billion. Adjustments for the difference in business days would place the deficit closer to $271 billion, officials noted.
As of the first 10 months of the fiscal year, the U.S. deficit soared to $1.629 trillion—a 7% increase from the same timeframe last year. Total receipts hit a new high of $4.347 trillion, whereas outlays continued their upward trend to reach $5.975 trillion, both record figures for the 10-month period.
(With inputs from agencies.)
Google News