The United States has reached a historic financial milestone, collecting over $100 billion in customs duties for the first time during a single fiscal year. According to the U.S.
U.S. Hits Major Milestone with Tariff Revenue
Treasury Department, the gross total collected from tariffs in the first nine months of fiscal year 2025 was $113.3 billion, with $108 billion remaining after refunds. This is nearly double the amount collected during the same period last year.
This surge in revenue is largely due to trade policies pushed by President Donald Trump, who has strongly backed tariffs on imported goods as a way to boost U.S. revenue and protect American industries. In June alone, customs duties hit a record $27.2 billion gross and $26.6 billion net, making it the highest monthly collection ever reported.
U.S. Treasury Secretary Scott Bessent praised the numbers, saying on social media that the country is “reaping the rewards” of President Trump’s tariff strategy. He added that these gains are being made “with no inflation.”
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Tariffs Turn June Deficit into Surprise Surplus
The increase in customs revenue led to a surprise $27 billion budget surplus in June. Just one year ago, in June 2024, the government had a $71 billion deficit. This turnaround happened because total revenue for the month rose by 13% to $526 billion, while government spending dropped by 7% to $499 billion.
However, the U.S. Treasury also pointed out that some of the shift came from calendar changes—if tax and benefit payments had fallen on different days, the month would have shown a $70 billion deficit instead. Even so, that would still be an improvement over the $143 billion adjusted deficit in June 2024.
Despite the surplus in June, the total federal deficit for the first nine months of fiscal year 2025 still grew to $1.337 trillion, up 5% from last year. This was mainly caused by higher spending on health care, Social Security, defense, debt interest, and homeland security programs.
Tariffs Now a Key Source of Government Income
Customs duties have become the fourth-largest source of income for the federal government. They now make up about 5% of total government revenue, a big jump from the usual 2% in previous years. The top three sources are:
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- Withheld individual taxes: $2.683 trillion
- Non-withheld individual taxes: $965 billion
- Corporate taxes: $392 billion
Economist Ernie Tedeschi, director of the Budget Lab at Yale University and a former White House adviser, explained that some of the current tariff income may be the result of buyers trying to beat the next wave of higher tariffs. But once those early purchases slow down, he said, the government may see even more customs revenue coming in—possibly an extra $10 billion per month.
President Trump recently announced more tariffs to begin on August 1, including:
- 50% tariffs on copper and goods from Brazil
- 35% tariffs on Canadian imports
- New tariffs coming soon on semiconductors and pharmaceuticals
If collections continue at the June pace, customs revenue could reach as high as $276 billion over the next six months. Secretary Bessent told a cabinet meeting that $300 billion in tariff revenue by the end of calendar year 2025 is within reach.
Meanwhile, the government’s interest payments on the national debt have become its largest single expense, totaling $921 billion so far this fiscal year. A Treasury official said the average interest rate on this debt remains stable at 3.3%, only slightly higher than last year.