U.S. Budget Deficit Drops as Tariffs Boost Custom Receipts

The U.S. budget deficit for August decreased by 9% to $345 billion due to higher customs receipts resulting from tariffs. Meanwhile, August's year-to-date deficit increased by 4% to $1.973 trillion. New records were set for both receipts and outlays, significantly influenced by President Trump's tariffs.

Devdiscourse News Desk | Washington DC | Updated: 11-09-2025 23:34 IST | Created: 11-09-2025 23:34 IST

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The U.S. budget deficit in August showed a marginal decline, dropping by $35 billion—an impressive 9% decrease from the previous year—reaching $345 billion. This reduction is attributed largely to President Donald Trump's tariff strategy, which raised net customs receipts by approximately $22.5 billion, according to the Treasury Department's report on Thursday.

As the 2025 fiscal year approaches its conclusion, there remains a lingering concern: the year-to-date budget deficit has grown by $76 billion, marking a 4% rise to $1.973 trillion. Such figures underscore the financial ebb and flow within the nation's economy.

Both receipts, which surged by $38 billion or 12% to hit a record $344 billion, and outlays, which climbed slightly by $2 billion to $689 billion, reached new heights for the month. The historic climb in net customs receipts, culminating at $29.5 billion in August, was driven by tariff policies, compared to just $7 billion in the prior year.

(With inputs from agencies.)