US tariff revenue reached a new monthly record in July, according to the Treasury Department. Customs duties climbed to $US28 billion ($42.9 billion) last month, representing a substantial 273 per cent increase compared to July of the previous year. This surge in tariff revenue highlights one aspect of the federal government’s financial activity as the fiscal year approaches its end.
Despite the significant increase in tariff revenue, the monthly budget deficit also saw a rise. The monthly budget deficit came in at $US291 billion, 10 per cent more than the same month a year before, after accounting for calendar differences. This indicates continuing fiscal challenges for the US government, even with increased revenue streams.
For the 10 months through July, the US budget deficit weighs in at $US1.63 trillion. That’s 4 per cent narrower than the prior year, after adjusting for differences in the calendar and removing the impact of deferred tax payments received in 2024, Treasury officials told reporters. Earlier in the fiscal year, enlarged tariff revenue helped the government achieve a surplus of $US27 billion in June, the first June surplus since 2015.
