Tariff Revenue Hits Record $23 Billion in May
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U.S. customs duties climbed to a record in May, helping shrink the budget deficit for the month, while doubts remain about the persistence of the inflows as the Trump administration negotiates with trading partners and faces a judicial challenge over its levies.
The Treasury Department recorded $23 billion in customs-duties revenue for May, according to the agency’s monthly budget statement. This represents a $17 billion, or 270%, increase from the same month a year earlier.
The fiscal deficit was $316 billion for May, down 17% from the same month a year before, after accounting for calendar-year differences. For the first eight months of the fiscal year, the deficit was $1.37 trillion. Taking account of revenue deferred from 2023 to 2024 and for the calendar differences, the year-to-date gap is 1% smaller, an agency official told reporters.
Also helping last month’s finances: a decline in the Treasury’s cost of servicing its debt. That was thanks to smaller payments on inflation-linked securities, and a reduced discount on Treasury bills, an agency official said.
Still, Treasury Secretary Scott Bessent earlier June 11 warned that the U.S. faces another supersized deficit for the current year. Speaking at a House panel, he told lawmakers the gap would be 6.5% to 6.7% of gross domestic product — a third straight year in excess of 6%. Bessent wants to shrink it toward 3%.
(Bloomberg)
The jump in tariff revenue reflects President Donald Trump’s steep tariff hikes. The levies on China started coming down in mid-May after a preliminary deal. This week, U.S.-China talks yielded a framework for an agreement, though Chinese President Xi Jinping still has to sign off on it.
Increasing spending on Social Security and health care programs continue to drive U.S. outlays higher, the June 11 data also showed.
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