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Tipsheet

Trump’s Tariffs Deliver: U.S. Posts $27 Billion Budget Surplus

AP Photo/Mark Schiefelbein

The U.S. Treasury reported a budget surplus in June, driven in large part by a surge in tariff revenue, thanks to President Donald Trump’s America-first trade policies. The surplus offers a clear reminder that strategic tariffs can strengthen the nation’s bottom line while prioritizing domestic industries and American jobs. 

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In June, the U.S. Treasury reported a budget surplus of just over $27 billion, a sharp turnaround from the $316 billion deficit recorded in May. The jump in revenue was partly fueled by a rise in tariff collections, helping drive a 13 percent increase in overall receipts compared to the same month last year. Meanwhile, government spending in June fell 7 percent. So far this fiscal year, which ends on September 30, the deficit stands at $1.34 trillion, about 5 percent higher than at the same point last year. However, when accounting for calendar adjustments, the deficit has actually dipped by about 1%. Year-to-date, federal revenues are up 7 percent, while spending has increased by 6 percent. As a result, rising revenue from tariffs is helping to strengthen the government's financial position.

The U.S. government surprised observers by posting its first budget surplus in over nine years this June, defying expectations of another monthly deficit.

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The last time the government posted a June surplus was in 2017, during President Trump's first year in office. 

Customs duties generated approximately $27 billion in June, up from $23 billion in May, representing a 17 percent increase compared to June 2024. Over the past year, total tariff revenue has reached $113 billion, representing an 86 percent increase from the previous year. According to the Treasury Department, calendar adjustments played a key role in June’s results—without them, the month would have posted a $70 billion deficit.

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