US Tariff-Driven Customs Receipts Top $100 Billion
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U.S. revenue from customs duties this fiscal year surpassed $100 billion for the first time, reflecting higher tariffs imposed by the Trump administration.
The Treasury Department recorded $27 billion in customs-duties revenue for June, bringing fiscal year-to-date inflows from levies to $113 billion, according to the agency’s monthly budget statement. Total government revenue for the month increased about 13% from a year ago.
The U.S. posted a $27 billion overall surplus in June compared with a $71 billion deficit in the same month last year. For the first nine months of the fiscal year, the deficit was $1.34 trillion. After adjusting for calendar differences, the year-to-date gap is 1% smaller than the prior year, an agency official told reporters.
President Donald Trump has implemented a host of new tariffs on various products and trading partners, leading to the increase in customs duties revenue for the government. Through the avenue of tariffs, the president is seeking to rejuvenate domestic production and correct trade imbalances.
(Bloomberg)
Trump has also sought to use the levies to extract demands from multiple nations. It’s not clear how the pace of revenue from import duties will unfold because of temporary pauses or adjustments in tariff rates. Levies on Chinese goods have dropped from 145% after the U.S. and China reached a framework agreement, though they remain elevated.
At the same time, Trump has threatened to impose higher tariffs on metals and various trading partners. On July 10, the president sent a letter to Canadian Prime Minister Mark Carney in which he said some Canadian goods would be subject to a 35% tariff, effective Aug. 1.
RELATED:Trump Plans to Hike Tariffs on Canadian Goods to 35%
This follows an announcement of 50% duties on Brazilian goods and 25% tariffs on Japanese imports, while Trump says his administration remains open to more negotiations. The ever-changing nature of trade policies leaves a lot of uncertainty around how much revenue will be generated in the long term.
Treasury Secretary Scott Bessent on July 8 said the U.S. could collect “well over” $300 billion in tariffs by the end of the year.
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