US customs duties crossed $100 billion for the first time in a fiscal year, as June saw a surprise $27 billion budget surplus, the Treasury Department said on Friday. Tariffs surged and became a major revenue source. Gross customs duties in June hit $27.2 billion and $26.6 billion net after refunds, setting new records.
As a result, the report showed tariffs are now a key part of federal income. President Trump said on Tuesday, “The big money would flow in after new reciprocal tariffs start on August 1.” Likewise, Treasury Secretary Scott Bessent said on X that the US is “reaping the rewards” from Trump’s tariff policies.
Moreover, Bessent added, “As President Trump works hard to take back our nation’s economic sovereignty, today’s (Friday’s) Monthly Treasury Statement is demonstrating record customs duties – and with no inflation!” For the first nine months of fiscal 2025, gross customs revenue reached $113.3 billion and net $108 billion, almost double the previous year.
The fiscal year ends September 30. Consequently, tariffs are now the fourth-largest revenue stream after withheld individual taxes ($2.683 trillion), non-withheld individual taxes ($965 billion), and corporate taxes ($392 billion). In just four months, tariffs jumped from about 2% to 5% of total revenue.
In June, receipts rose 13% or $60 billion to $526 billion, a monthly record. Meanwhile, spending dropped 7% or $38 billion to $499 billion. However, adjusted for calendar changes, the June surplus would have been a $70 billion deficit, compared to $143 billion adjusted deficit last year.
Despite the June surplus, the total year-to-date deficit rose 5% or $64 billion to $1.337 trillion. Spending increased for healthcare, Social Security, defence, debt interest, and Homeland Security. On the other hand, receipts grew 7% or $254 billion to $4.008 trillion due to higher wages and jobs.
In addition, outlays rose 6% or $318 billion to $5.346 trillion. Debt interest hit $921 billion in nine months, up 6% or $53 billion. Notably, the average interest rate was 3.3% in June, two points higher than last year.
Earlier this week, Bessent told a cabinet meeting that 2025 tariff collections could reach $300 billion. At the current June pace, that means $276.5 billion in six months. Therefore, some increases are needed to hit that goal.
Finally, Ernie Tedeschi, Economics Director at Yale’s Budget Lab, said more revenue may come once buyers stop front-running duties. Once that happens and higher tariffs start on August 1, he expects collections to rise by $10 billion per month. Thus, the monthly total could reach $37 billion.
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