{"id":66246,"date":"2025-08-13T10:09:14","date_gmt":"2025-08-13T10:09:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/66246\/"},"modified":"2025-08-13T10:09:14","modified_gmt":"2025-08-13T10:09:14","slug":"trumps-tariffs-lead-to-record-revenues-but-u-s-deficit-still-climbed-20-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/66246\/","title":{"rendered":"Trump\u2019s tariffs lead to record revenues, but U.S. deficit still climbed 20% – National"},"content":{"rendered":"

Despite the U.S. taking in record income from President Donald Trump\u2019s tariffs<\/a> in July \u2014 with a 273% increase in customs revenues (or $21 billion) from this time last year \u2014 the U.S. budget\u00a0deficit\u00a0is still higher, according to\u00a0Treasury\u00a0Department data\u00a0released Tuesday.<\/p>\n

\"\"<\/p>\n

The government\u2019s shortfall has climbed 20% this fiscal year compared to the same period in 2024.<\/p>\n

Even as Trump talks about America becoming rich because of his import tax hikes, federal spending keeps outpacing the revenues collected by the government. That financial picture might change as companies exhaust their pre-tariff inventories, forcing them to import more goods and generate even more in tax revenues that could whittle away at the\u00a0deficit\u00a0without meaningfully reducing it as promised.<\/p>\n

If tariffs fail to deliver on Trump\u2019s pledge to improve the government\u2019s balance sheet, the American public could be faced with fewer job options, more inflationary pressures and higher interest rates on mortgages, auto loans and credit cards. The budget\u00a0deficit\u00a0is the annual gap between what the U.S. government raises in taxes and what it spends, over time feeding into the overall national debt.<\/p>\n

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A Treasury official who spoke on the condition of anonymity to preview the data said overall\u00a0increased spending\u00a0is in part due to a mix of expenditures, including growing interest payments on the\u00a0public debt\u00a0and\u00a0cost-of-living increases to Social Security\u00a0payouts, among other costs. This comes as the federal government\u2019s gross\u00a0national debt\u00a0creeps up to the $37 trillion mark.<\/p>\n

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While organizations like the Committee for a Responsible Federal Budget say that tariff income\u00a0can be a stream of meaningful revenue\u00a0\u2014 estimated to generate about $1.3 trillion over the course of President Trump\u2019s four-year term in office; some economists like Kent Smetters of the University of Pennsylvania\u2019s Penn Wharton Budget Model say tariffs are likely to result \u201c\u00a0in only modest reductions\u00a0in federal debt.\u201d<\/p>\n

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In June,\u00a0the Congressional Budget Office\u00a0estimated that President Donald Trump\u2019s\u00a0sweeping tariff plan\u00a0would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall. But revenue estimates are also difficult to predict as the president has changed his tariff rates repeatedly and the taxes declared as part of an economic emergency are currently under appeal in a U.S. court.<\/p>\n

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A Treasury official did not respond to an Associated Press request for comment on when the U.S. could begin to see tariff revenue start to put a dent in the\u00a0deficit.<\/p>\n

Treasury Secretary Scott Bessent\u00a0said last month\u00a0on Fox Business Network\u2019s \u201cMornings with Maria\u201d that the administration is \u201claser-focused on bringing this\u00a0deficit\u00a0down.\u201d The Trump administration expects to make more trade deals with other nations, including China and other major economies.<\/p>\n

For instance, on Monday, Trump\u00a0extended a trade truce\u00a0with China for another 90 days, which preserves the 30% tariffs he had imposed as a condition for negotiations. The previous deadline was set to expire at 12:01 a.m. Tuesday.<\/p>\n

Trump posted on his Truth Social platform that he signed the executive order for the extension, and that \u201call other elements of the Agreement will remain the same.\u201d Beijing, at the same time, also announced the extension of the tariff pause, according to the Ministry of Commerce.<\/p>\n

Associated Press writer Josh Boak contributed to this report.<\/p>\n

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\n\t\t&copy 2025 The Canadian Press\t<\/p>\n","protected":false},"excerpt":{"rendered":"Despite the U.S. taking in record income from President Donald Trump\u2019s tariffs in July \u2014 with a 273%…\n","protected":false},"author":2,"featured_media":66247,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,8334,46,134,714,42184,42185,2845],"class_list":{"0":"post-66246","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-donald-trump-tariffs","12":"tag-economy","13":"tag-money","14":"tag-politics","15":"tag-u-s-budget","16":"tag-u-s-deficit","17":"tag-u-s-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/66246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=66246"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/66246\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/66247"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=66246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=66246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=66246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}