Data released by the Treasury Department indicates that while tariffs may be a worry for consumers, their impact on the federal budget is turning positive. In fact, the federal government gained more than it spent in June, thanks to a rise in tariff revenues, now at their decade-high levels.
The U.S. collected $26.6 billion in tariff revenues in June, which over four times the amount gathered in June 2024 ($6.3 billion). These June receipts have also climbed from $22.2 billion in May, following a jump in tariff collections in April as President Donald Trump’s tariffs began to kick in.
The revenue boost from tariffs resulted in a $27 billion budget surplus for June. The surplus was chiefly driven by a huge cut - approximately $187 billion - in government expenditures for the month. This comes as the Trump administration works to slash costs through the Department of Government Efficiency and downsizing the federal workforce.
Although the government still contends with a hefty budget deficit standing at approximately $1.3 trillion for fiscal 2025, which jumped off last October, the surge in tariffs is easing some debt pressures. Moreover, the Congressional Budget Office indicated in June that the rise in tariff collections could generate sufficient funds to cover the costs of tax cuts enacted in the "One Big, Beautiful Bill" budget legislation enacted this month. This implies significant potential benefits for taxpayers and the economy, as reduced national debt brings down interest payments for the government, therefore necessitating less tax revenue to sustain these expense payments.