Record-breaking $27.7 tariff haul in July has Trump celebrating, but will it last?
Tired of too many ads?
Remove Ads
Tariff Collections See Massive Year-Over-Year Growth
Donald Trump Hails July Tariff Revenue Surge as a Win
Tariffs Still a Small Piece of the Fiscal Puzzle
Tired of too many ads?
Remove Ads
Who's Really Paying the Tariffs?
US Tariff Rate Heading to Historic High
Tired of too many ads?
Remove Ads
FAQs
US president Donald Trump is celebrating a record-breaking month for US tariff revenue due to the billions pouring into federal coffers as revenue supplied by importers hit another monthly record, as per a report. But economists and analysts are warning that the financial boost may be short-lived and that American businesses and consumers are footing most of the bill, as reported by Yahoo Finance.New data released Tuesday by the Treasury Department shows the US collected $27.7 billion in customs duties in July, a new monthly record and a sharp jump from the $26.6 billion collected in June and $22.2 billion in May, as per the report. Just a year ago, monthly tariff collections hovered around $8 billion, according to Yahoo Finance. Altogether, tariff revenue for the current fiscal year has climbed to roughly $135.7 billion, with two months still to go before the government's fiscal year ends on September 30, as per Yahoo Finance.ALSO READ: Houthis spare Chinese car ships, but others aren't so lucky - here's the surprising reason In a post on Truth Social, Trump celebrated the milestone, calling the revenue "has been incredible for our Country, its Stock Market, its General Wealth, and just about everything else," as quoted in the report. He also took a swipe at Goldman Sachs, which has raised concerns about the long-term effects of his tariffs and disputed his repeated claim that foreign nations are the ones paying the duties, according to the Yahoo Finance report.Despite the president's enthusiastic framing, a closer look at the numbers paints a more complicated picture, as per the report.Though tariffs brought in $27.7 billion last month, that sum accounted for less than 10% of total government receipts, which topped $338 billion in July, reported Yahoo Finance. The boost in tariff revenue also didn't help reduce the growing budget deficit, which widened by $291 billion last month alone, according to the report. Over the past 10 months, the federal deficit has grown to $1.63 trillion, as per the Yahoo Finance report.ALSO READ: Is it AI or Trump's policies? US sees brutal 140% layoff spike in July, worst surge since early COVID chaos Economists have pointed out that contrary to Trump's claims, it's not foreign governments footing the tariff bill, it's US businesses and, increasingly, American consumers, according to the report.Research from Goldman Sachs estimates that as of June, US companies absorbed about 64% of the costs from higher tariffs, while consumers paid about 22%, as reported by Yahoo Finance. But that is shifting, and by October, the investment bank forecasts that consumers could end up covering nearly 67% of tariff costs as businesses pass price hikes down to them, compared to only 8% for US businesses, reported Yahoo Finance. Goldman Sachs also predicted that foreign exporters' share would be around 25%, as per the report.ALSO READ: Giant Wyoming data center to guzzle 5x more power than residents, but the user remains secret However, further tariff increases are on the horizon. Last week, the Trump administration implemented new hikes on imports from key trading partners, including the European Union, Japan, and South Korea, and in the coming weeks, tariffs on some Indian goods are set to climb to 50%, as reported by Yahoo Finance.Analysts at the Yale Budget Lab estimate that once all of Trump's planned measures are fully implemented, the US average effective tariff rate will soar to 18.6%, the highest level since 1933, according to the report.ALSO READ: 10 must-change iOS 18.6 settings that'll make your iPhone feel like day one again As per economists, mostly US businesses and consumers, not foreign governments, despite Trump's claims.Less than 10% of total government receipts, which stood at $338 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
8 minutes ago
- Hindustan Times
Southeast Asia Needs to Step Up Defense Spending
'Trust me, it's paradise.' That's how Leonardo DiCaprio's character describes Southeast Asia in the 2000 cult classic 'The Beach.' The region is a wonderland of white-sand beaches, tropical landscapes, vibrant cities and delicious street food. But there's trouble in paradise. China is menacing Southeast Asia, making the region dangerous for its inhabitants. China's Xi Jinping sees the area—home to 700 million people across 11 countries—as his backyard, belonging in the 'Sinosphere' of influence. He has been flexing his muscles to make this clear. In April, Chinese coast guard officials took control of Sandy Cay, a disputed reef in the South China Sea claimed by the Philippines. This was the latest in a series of similar seizures. For more than a decade, Mr. Xi has been asserting territorial claims over reefs and islands across Southeast Asian waters. His goal is to turn them into outposts of Chinese military power. Take the Paracel Islands off the coast of Vietnam, on which China has built 20 outposts, complete with fighter jets, cruise missiles and radar systems. Or take the Spratly Islands west of the Philippines, where China has seven outposts. Nuclear-capable bombers have reportedly been spotted flying overhead. China also puts pressure on Southeast Asia in subtler ways. It has waged disinformation campaigns across the region, pushing pro-Beijing narratives and seeking to sway elections. The Philippines in particular has been called a 'petri dish' for Chinese disinformation. Southeast Asian nations aren't doing much to protect themselves from China. With the exception of Singapore, they invest little in defense. Indonesia, the world's fourth most populous country with 280 million people, spends only 0.7% of its gross domestic product on defense. Malaysia spends 0.9%. Vietnam and the Philippines, which bear the brunt of Chinese aggression, muster only 1.7% and 1.4% respectively. By contrast, North Atlantic Treaty Organization member states recently pledged to cough up 5% of GDP on defense. That includes countries such as Greece and Albania. Southeast Asian countries have no excuse not to follow suit. They need to spend more on defense—and soon. Southeast Asian nations must show China that they aren't pushovers. What if the Chinese navy tomorrow tried to disrupt shipping routes in the Strait of Malacca, a narrow waterway wedged between Indonesia and Malaysia through which some 30% of annual global trade passes? Asian nations couldn't count on the U.S. to intervene if China disrupted this trade route or otherwise overstretched its hand in the region. Neither Indonesia nor Malaysia would be able to defend against Chinese predations. If Southeast Asian countries had bigger military budgets, however, it would establish deterrence and make Mr. Xi second-guess his plans. Former Singaporean Defense Minister Ng Eng Hen recently pointed out that the new world order is 'based on size and influence, based on power.' The only way to safeguard sovereignty in such a world is to become mighty. 'Strong fences, and I would add, defenses, make good neighbors,' said Mr. Ng. Spending on defense would also boost Southeast Asian economies. Some nations in the region—including Vietnam, Malaysia, Indonesia and the Philippines—lack a strong domestic economic foundation, are especially vulnerable to President Trump's tariffs, and rely heavily on exports and foreign investment. Higher military spending would be a game changer for such economies. As has been the case with other countries, building a strong security sector would drive innovation and entrepreneurship. Before long, the benefits would spill over into the wider economy. As Palantir CEO Alex Karp argues in 'The Technological Republic' (2025), Silicon Valley's early growth was largely fueled by investments from the U.S. military. A bigger defense sector in Southeast Asia would also be a boon for the U.S. American firms could benefit from lucrative arms contracts. The U.S. government could strengthen alliances in a critical region, meaning more leverage over China. And American tourists could continue to visit this paradise for decades. Mr. Scheers is a defense analyst from Malaysia. Mr. Zenou is a historian specializing in the Cold War.
Time of India
22 minutes ago
- Time of India
Protests in Jalgaon after statue desecration
Nashik: Residents of a Jalgaon village, within Pahur police station's jurisdiction, took to the streets on Aug 15 after a statue of a prominent Indian politician was found desecrated in the market area at 7.30 am on Friday. Protests were also staged by a political party in front of the Jalgaon district collector's office, demanding strict action against those involved in the desecration. Additional SP Kavita Nerkar said, acting on a tip-off, a 50-year-old man from the same village where the incident took place was arrested by the Pahur police and charged under sections 298 (injuring or defiling a place of worship), 299 (deliberate and malicious acts intended to outrage religious feelings), and 196 (promoting enmity and hatred between different groups based on religion, race), among other sections of the BNS. Police officers said the suspect was produced before a court on Friday, which remanded him to three-day police custody. The police are investigating whether more people were involved in the act. The incident came to light at 7.30 am on Friday. Soon after the news spread, people in the village went to the police station and demanded strict action. As the situation became tense, the police deployed a strong bandobast in the village to avoid any untoward incidents. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 1 Reason to Read The 5 Books American Investor Warren Buffett Recommends For Turning Your Life... Blinkist: Warren Buffett's Reading List Undo The protestors also demanded that CCTV cameras be installed. The Jalgaon police, under the guidance of SP Maheswar Reddy, appealed to the people to maintain peace and refrain from making any posts on social media. Protestors on Saturday morning emphasised the need for strict action against the suspects involved and demanded CCTV cameras near the statues of all national figures to prevent such incidents in the future. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
38 minutes ago
- Time of India
Take steps to ease tariff pain of exporters, CM urges PM
Chennai: In the wake of the US imposing an additional 25% tariff on Indian goods, chief minister M K Stalin urged Prime Minister Narendra Modi to introduce special financial relief measures for exporters. In a letter to Modi, Stalin said, "To provide immediate relief, Union govt needs to consider introducing a special interest subvention scheme for all exporters affected by tariffs to improve liquidity and reduce cost burdens and accelerate Free Trade Agreements and bilateral arrangements to offset high-tariff market risks." Considering the scale of the problem, a special financial relief package including a moratorium on principal repayment, similar to the one implemented during COVID is necessary to support exporters, Stalin said. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai | Gold Rates Today in Chennai | Silver Rates Today in Chennai "While 20% of India's total goods exports of $433.6 billion were to the US, 31% of TN's $52.1 billion goods exports went there. "This higher dependency on the US market clearly implies that tariff impact on TN will be disproportionately greater than for most other Indian states," Stalin said. TN accounted for 28% of India's textile exports in 2024-2025, the largest contributor among all Indian states, he said. "Especially, our textile sector employs nearly 75 lakh people and with aproposed 50% tariff, an estimated 30 lakh jobs are at immediate risk. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo To mitigate this crisis, it is essential to address structural issues that have long hindered our export competitiveness," he added. Appreciating efforts of the Union govt to achieve a mutually beneficial trade agreement with the US, Stalin said, "Textile sector urgently needs support in two aspects correction of the GST inverted duty structure for the man-made fiber value chain by bringing the entire chain under a 5% GST slab, and exemption of import duty on all varieties of cotton." Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
