FX.co ★ US Budget Surplus Boosted by Record Tariff Revenues

The U.S. government announced a budget surplus of $27 billion in June, primarily driven by a significant increase in customs duties revenue, which reached an unprecedented $27.2 billion. This surge in tariff revenues, largely due to policies implemented during President Trump's administration, contributed to a 13% increase in budget receipts for June, totaling $526 billion. Concurrently, government spending decreased by 7% to $499 billion. However, the Treasury clarified that, after accounting for calendar adjustments, June would have actually exhibited a $70 billion deficit. Cumulatively for the year, the overall budget deficit has increased by 5%, now standing at $1.337 trillion. This rise is attributed to heightened expenditures in areas such as healthcare, Social Security, defense, and interest on national debt. The fiscal year saw customs receipts reaching a historic high of $113.3 billion gross, indicating an increasing dependence on tariffs as a revenue stream. Treasury officials project a continued escalation in tariff collections, potentially nearing $300 billion by the conclusion of 2025. The administration is also planning for additional tariffs, including new duties targeting the semiconductor and pharmaceutical sectors.