Latest news with #budget surplus
Russia Today
7 days ago
- Business
- Russia Today
US Treasury reports surprise surplus
The US government posted a surprise budget surplus in June, driven by a sharp increase in customs duties amid President Donald Trump's tariff hikes, the Treasury said in a monthly report on Friday. The report shows a surplus of just over $27 billion last month, following a deficit of over $300 billion in May. Much of the increase stems from Trump's import tariffs introduced since April. Customs duties totaled around $27 billion, up from just $7 billion a year ago – a 301% rise. Since the fiscal year began in October 2024, total tariff collections have exceeded $113 billion, nearly doubling from 2024. Commenting on the report, Treasury Secretary Scott Bessent said the country is 'reaping the rewards' of Trump's tariff campaign. 'As President Trump works hard to take back our nation's economic sovereignty, today's Monthly Treasury Statement is demonstrating record customs duties – and with no inflation!' Bessent wrote on X. Earlier this week, he claimed that customs duty collections could hit $300 billion by the end of the year. Trump's first round of tariffs on April 2 – which he called Liberation Day – included 10% tariffs on nearly all US trade partners and steeper rates on China, Mexico, Canada, and the EU. Some measures were delayed for trade talks, but since then, Trump has added tariffs on steel, copper, aluminum, and other key imports. He recently imposed a 25% tariff on goods from Japan and South Korea, with more reportedly planned if no deals are reached. US trade partners have pushed back against Trump's tariffs. India, which has been hit with a 50% tariff, has proposed retaliatory tariffs under WTO rules. China, which faces triple-digit tariffs, has called Trump's moves unlawful, but has paused retaliatory measures amid ongoing talks. Both countries are members of BRICS, which Trump has accused of conducting 'anti-American policies' and which he threatened with additional 10% tariffs earlier this month. The EU has warned of lasting damage due to the tariffs. European Commission President Ursula von der Leyen said this week that the bloc's relationship with the US 'may never go back to what it used to be.' Russia has not been hit with the tariffs due to the sweeping sanctions on the country that already exist, but Trump said this week he may support a bill that would impose 500% tariffs on countries that buy its goods and energy. The measure, proposed by Senator Lindsey Graham, aims to pressure Moscow to end the Ukraine conflict. Russian Deputy Foreign Minister Sergey Ryabkov dismissed the threat, saying the country will adapt and won't be swayed from its 'sovereign path.' Moscow has said it is ready to negotiate with Kiev, but insists that any peace settlement must reflect the battlefield realities and guarantee Ukrainian neutrality, demilitarization, and denazification.
Yahoo
11-07-2025
- Business
- Yahoo
US customs duties reach record $27 billion in June, spurring small surplus
By David Lawder WASHINGTON (Reuters) -U.S. gross customs duties revenue grew to a record $27.2 billion in June as collections from President Donald Trump's tariffs gained steam, combining with calendar shifts in receipts and outlays to produce a $27 billion federal budget surplus for the month, the U.S. Treasury said on Friday. The tariff receipts, which have increased steadily over the past three months, helped push total June budget receipts up 13%, or $60 billion, to $526 billion, a record for the month. June outlays fell 7%, or $38 billion, to $499 billion, the Treasury said. Adjusting for calendar shifts of some revenues and benefit payments, the Treasury said that June would have shown a budget deficit of $70 billion. The data shows that tariff revenues are starting to build into a significant revenue contributor, with customs duties increasing fourfold to $27.2 billion on a gross basis and $26.6 billion on a net basis in June after refunds. Customs receipts for the first nine months of the fiscal year also topped $100 billion for the first time on an annual basis, reaching a record $113.3 billion on a gross basis and $108 billion on a net basis. The 2025 fiscal year runs from October 1, 2024 to September 30, 2025. The overall year-to-date deficit, however, increased 5%, or $64 billion, to $1.337 trillion, as outlays for health care programs, Social Security, defense spending and interest on the national debt all increased, the Treasury said. Receipts for the first nine months of the fiscal year rose 7%, or $254 billion, to a record $4.008 trillion, while outlays grew 6%, or $318 billion, to a record $5.346 trillion. Treasury Secretary Scott Bessent earlier this week suggested a steeper ramp-up in tariff collections, telling a cabinet meeting that the U.S. had taken in about $100 billion in tariff income so far this year, with that figure possibly growing to $300 billion by the end of 2025. A Treasury spokesperson said Bessent was referring to the calendar year - essentially the period since Trump returned to office - and not the fiscal year. Reaching $300 billion in tariff collections by December would imply a substantial increase in collections in the coming months and steep and broad tariff increases from current levels. Bessent added that the CBO has estimated tariff income will total about $2.8 trillion over 10 years, "which we think is probably low." Trump has set a new August 1 deadline for higher "reciprocal" tariff rates set to kick in on nearly all U.S. trading partners, with room for negotiations with some countries in the next three weeks for deals to lower them. Those duties will bring in "the big money," Trump said. Since those remarks on Tuesday, the U.S. president has put his tariff assault into overdrive, announcing 50% levies on copper imports and goods from Brazil and a 35% tariff on Canadian goods, all due to start on August 1. The Trump administration is preparing more sector-based tariffs on semiconductors and pharmaceuticals. Sign in to access your portfolio
