FX.co ★ US Government Budget Surplus Jumps in April

In April, the US government reported a budget surplus of $258 billion, marking a 23% increase compared to the same month in the previous year. This growth was attributed to robust tax revenues and an uptick in import duty collections. The increase coincided with the conclusion of tax season, a period when revenues typically reach their peak. Net customs duties amounted to $16 billion in April, representing a $9 billion rise from the previous year. This was largely due to the imposition of significant tariffs on Chinese imports—some reaching as much as 145%—and a minimum of 10% on other imported goods, which led to higher collections. On average, the US earned over $500 million daily from tariffs in April, a decrease from the $2 billion daily average previously cited by President Trump. The surplus was further bolstered by $85 billion in deferred tax revenues from California and adjustments in the fiscal calendar that moved certain April expenditures to earlier months. However, officials anticipate a decline in tariff revenues in the forthcoming months due to a provisional agreement between the US and China to lower tariffs.