The U.S. Budget Deficit Grows Despite Record Revenue from Trump Tariffs

• The U.S. budget deficit increased by 20% in July 2025.
• Revenue from customs duties rose by 273% compared to the previous year.
• Experts suggest that the increase in tariffs could significantly reduce the national debt.

WASHINGTON — The U.S. budget deficit increased by 20% in July compared to the previous year, despite record revenue from tariffs imposed by President Donald Trump, according to data from the Treasury Department, published on September 12, 2025.

In July, revenue from customs duties rose by 273% or to $21 billion compared to the same period last year.

The growing deficit is explained by increased spending, including rising interest payments on the national debt and increased payouts for social security. Meanwhile, the total national debt of the U.S. has reached a staggering $37 trillion.

Even though Trump asserts that the increased tariffs will make Americans wealthier, federal spending continues to outpace revenue, which may lead to a reduction in the number of jobs, rising inflation, and increased interest rates on loans.

Some economists believe that revenue from tariffs could amount to nearly $1.3 trillion over four years of Trump’s presidency, but a reduction in the national debt will be insignificant.

In July, the U.S. Congress assessed that Trump’s tariff plan could reduce the deficit by $2.8 trillion over ten years, although forecasting revenues is challenging due to frequent changes in tariff rates.

On September 12, the Treasury Department did not comment on when revenues from tariffs might start to decrease the deficit. Treasury Secretary Scott Bessen stated that the administration is focused on reducing the deficit and plans to establish new trade agreements with other countries, including China.

For instance, Trump announced the extension of the trade truce with China for 90 days, maintaining 30% tariffs that he had previously imposed. Also, from the Chinese side, the extension of the pause in tariffs was confirmed.

Tags: USA/Economy