US Deficit Grows To $291Bn in July 2025 Despite Surge in Tariff Revenue

• The U.S. government's budget deficit grew nearly 20% in July 2025 to $291Bn, despite a $21Bn jump in customs duty collections from President Donald Trump's tariffs, with outlays growing faster than receipts, the Treasury Department said on Tuesday, August 12, 2025. Receipts for the month grew 2%, or $8Bn, to $338Bn, while outlays jumped 10%, or $56Bn, to $630Bn, a record high for the month.
• According to a Treasury official, net customs receipts in July 2025 grew to about $27.7Bn from about $7.1Bn in the year-earlier period due to higher tariff rates imposed by Trump. These collections were largely in line with the increase in June 2025 customs receipts after steady growth since April 2025.
• Trump has touted the billions of dollars flowing into U.S. coffers from his tariffs, but the duties are paid by companies importing the goods, with some costs often passed on to consumers in the form of higher prices. Consumer price index data on Tuesday, August 12, 2025, showed increases in prices for some tariff-sensitive goods like furniture, footwear and auto parts, but they were offset by lower gasoline prices in the overall index.
• The overall year-to-date budget results showed a $1.629 trillion deficit, up 7%, or $112Bn, from the same period a year earlier. Receipts were up 6%, or $262Bn, to $4.347Tn, a record high for the 10-month period, while outlays grew 7%, or $374Bn, to $5.975Tn, also a 10-month record.

(Source: Reuters)