The US budget deficit grew by 20% in July, despite a 116% increase in duty revenues

In July 2025, the US budget deficit increased by almost 20% to $291 billion, despite a significant increase in revenues from customs duties imposed by the president Donald Trump. About writes Reuters.

According to the US Treasury Department, customs revenues increased by almost $21 billion over the month due to higher tariffs, but expenses grew faster than revenues.

In July, government revenues increased by 2% (by $8 billion) to $338 billion, while expenditures increased by 10% (by $56 billion) to reach a record $630 billion for the month.

The US agency noted that July this year had fewer working days than last year, and if this factor were taken into account, the deficit would have been about $271 billion.

Net customs revenues jumped to $27.7 billion in July from $7.1 billion in the same period last year, due to higher tariff rates.

Although Trump publicly emphasizes that billions of dollars from tariffs are filling the budget, these duties are paid by importing companies, and part of the cost is eventually passed on to consumers through higher prices.

In the first ten months of the fiscal year, customs duties amounted to $135.7 billion, up $73 billion, or 116%, year-on-year.

U.S. Secretary of the Treasury Scott Bessent said that the increase in customs revenue would make it difficult for the Supreme Court to declare Trump's tariffs illegal if they are challenged.

The total US budget deficit in the first ten months of FY2025 reached $1.629 trillion, up 7% ($112 billion) from last year.

Revenues for the period increased by 6% (by $262 billion) to a record $4.347 trillion, while expenses increased by 7% (by $374 billion) to a record $5.975 trillion.

• On July 16, the Financial Times wrote that the United States earned a record $64 billion on duties, as the world avoids retaliatory measures.