U.S. Budget Surplus in June
The U.S. government recorded a budget surplus of $27 billion in June, largely influenced by an all-time high in tariff revenue, as per recent figures from the Treasury Department.
This surplus came from customs receipts amounting to $27.2 billion—one of the highest monthly tariff collections seen over the last decade. These revenues have seen a steady increase in recent months, thanks to President Trump’s decision to impose higher tariffs on other nations, which he believes are engaging in unfair trade practices.
Moreover, government spending dropped significantly, decreasing by 27% in June to $499 billion, down $187 billion from May. This June surplus represents a notable shift from the $316 billion deficit reported in May.
On a year-over-year basis, tariff collections have reached $113 billion, marking an impressive 86% rise compared to the previous year.
Back in April, Trump announced extensive “Liberation Day” tariffs on nearly all countries but later opted for a 90-day pause, effectively lowering most rates to a 10% baseline. His administration has also introduced new tariffs on steel, aluminum, and cars, with plans to implement further duties on copper soon.
During a recent White House cabinet meeting, Treasury Secretary Scott Bessent suggested that tariff revenue might hit $300 billion by the end of 2025. Trump has long advocated for tariffs to help adjust trade balances and raise funds, even speculating in past campaign speeches that tariff revenues could potentially replace income tax. His administration has indicated that more tariff hikes are expected for countries that fail to finalize trade agreements by August 1.
Currently, only the U.K., Vietnam, and China have finalized deals with the Trump administration.
In recent weeks, the president has reached out to leaders of various nations, informing them of the rates they’ll face starting August 1 if no agreement is reached. Among major trading partners, Trump has warned of imposing a 50% tariff on South Korea and Japan and a 35% tariff on Canada.
