Catenaa, Wednesday, August 13, 2025- US budget deficit grew nearly 20% in July to $291 billion despite a nearly $21 billion jump in customs duty collections from President Donald Trump’s tariffs.
The Treasury Department said on Tuesday that the deficit for July was up 19%, or $47 billion, from July 2024. Receipts for the month grew 2%, or $8 billion, to $338 billion, while outlays jumped 10%, or $56 billion, to $630 billion, a record high for the month.
The month of July this year had fewer business days than last year, so the Treasury Department said that adjusting for the difference would have increased receipts by about $20 billion, resulting in a deficit of about $271 billion.
Net customs receipts in July grew to about $27.7 billion from about $7.1 billion in the year-earlier period due to higher tariff rates imposed by Trump, a Treasury official said. These collections were largely in line with the increase in June customs receipts after steady growth since April.
For the first 10 months of the fiscal year, customs duties totaled $135.7 billion, up $73 billion, or 116%, from the year-earlier period.
US Treasury Secretary Scott Bessent told Fox Business Network’s “Kudlow” program that the growing US tariff revenue will make it difficult for the Supreme Court to rule against Trump’s import taxes if a legal challenge to them makes its way to the country’s top court.
The overall year-to-date budget results showed a $1.629 trillion deficit, up 7%, or $112 billion, from the same period a year earlier. Receipts were up 6%, or $262 billion, to $4.347 trillion, a record high for the 10 months, while outlays grew 7%, or $374 billion, to $5.975 trillion, also a 10-month record.
Moreover, interest on the public debt also continued to grow, topping $1.01 trillion for the 10 months, an increase of 6% or $57 billion over the prior year due to slightly higher interest rates and increased debt levels.
