Tariff receipts topped $16B in April, helped cut budget deficit
The month of April saw a significant increase in revenue from U.S. tariffs, reaching a record level as the effects of President Donald Trump’s trade war began to take hold. Customs duties brought in a total of $16.3 billion for the month, marking an 86% increase from March and more than double the amount collected the previous year.
The year-to-date total for tariffs now stands at $63.3 billion, showing an 18% increase compared to the same period in 2024. Trump’s implementation of 10% across-the-board tariffs on U.S. imports on April 2 added to the revenue generated from previous select duties.
Despite the ongoing budget deficit in the U.S., the surge in tariff revenue helped mitigate some of the imbalance for the month of April. The Treasury typically experiences a surplus during this time due to the income tax filing deadline, and this year was no exception with a surplus of $258.4 billion, a 23% increase from the previous year. The fiscal year-to-date surplus now stands at $1.05 trillion, showing a 13% increase from last year.
In April, receipts increased by 10% compared to 2024, while expenditures decreased by 4%. Year-to-date, receipts have risen by 5% while expenditures have increased by 9%. However, high interest rates continue to pose a significant budgetary burden, with net interest on the national debt reaching $89 billion in April, making it the second-highest expenditure category after Social Security. For the fiscal year, net interest has amounted to $579 billion, also ranking as the second-highest expenditure category.
Overall, the increase in tariff revenue has provided a boost to the Treasury’s coffers, helping to offset some of the budget deficit. The ongoing trade tensions and tariffs imposed by the Trump administration continue to shape the economic landscape, with implications for both government finances and international trade relations.
