Key takeout
Tariffs may be a concern for consumers, but they are beginning to have a positive impact on federal budgets, data released by the Treasury Department shows.
The federal government received more money than it spent in June, and the government today helped part of another increase in tariff revenue.
The US raised $26.6 billion in tariff revenue last month. Over $6.3 billion in tariff revenue collected in June 2024. June receipts rose from $22.2 billion in May to $22.2 billion as President Donald Trump’s tariffs began to take hold in April.
One result of the rise in tariff revenues was the $27 billion budget surplus in June. That surplus was driven primarily by a reduction in government spending of around $187 billion that month. The cut in spending comes in the Trump administration’s efforts to cut costs through government efficiency and reduced size of the federal workforce.
Despite the surplus in June, the fiscal deficit remains high
The government is still facing a significant fiscal deficit, totaling around $1.3 trillion for fiscal year 2025, which began last October.
The federal government’s total debt is approximately $36 trillion, and in June it paid $84 billion in interest on the debt. The Congressional Budget Office in June said the increase in tariff collection could bring enough money to pay for the tax cuts enacted under the “One Big, Beautiful Invoice” budget law enacted this month.
Budget surplus helps reduce national debt and offers potential benefits for both taxpayers and the economy. To begin with, reducing debt reduces government interest payments. This means you need to reduce your tax revenue to cover these payments.
