Washington, D.C. – U.S. customs duty collections surged to unprecedented levels in June, surpassing $100 billion for the fiscal year and contributing to a surprise $27 billion budget surplus, the Treasury Department reported Friday. The dramatic increase—fueled by President Donald Trump’s escalating tariffs—has transformed trade levies into a major revenue stream, with June collections quadrupling year-over-year to $27.2 billion (gross) and $26.6 billion (net).
The latest data confirms tariffs as the fourth-largest federal revenue source, trailing only individual income taxes ($2.68 trillion) and corporate taxes ($392 billion) for fiscal 2025. Over just nine months, customs duties have nearly doubled year-over-year, reaching $113.3 billion (gross) and $108 billion (net)—a figure set to grow as new “reciprocal” tariffs take effect August 1. Historically accounting for 2% of federal receipts, tariffs now represent roughly 5%, reflecting Trump’s aggressive trade agenda.
Treasury Secretary Scott Bessent hailed the results as proof the U.S. is “reaping the rewards” of Trump’s strategy, claiming the revenue boom comes “with no inflation.” The windfall bolsters the administration’s dual use of tariffs as both a revenue generator and a foreign policy tool, with Trump vowing “big money” will follow his latest tariff hikes. Critics, however, warn of long-term risks, including potential consumer price spikes and retaliatory measures from trading partners.
June’s surplus—rare for a month typically dominated by spending—underscores the fiscal impact of Trump’s trade wars. Yet economists caution that tariff-driven gains may be offset by supply chain disruptions and market uncertainty, particularly as the August deadline looms. With the fiscal year ending September 30, the administration is poised to tout tariffs as a success—even as businesses brace for further turbulence.