US deficit grows to $291 billion in July despite surge in tariff revenue

Yahoo

3 days ago

(Reuters) -The U.S. government's budget deficit grew nearly 20% in July to $291 billion despite a $21 billion jump in customs duty collections from President Donald Trump's tariffs, with outlays growing faster than receipts, the Treasury Department said on Tuesday.
The deficit for July was up 19%, or $47 billion, from July 2024. Receipts for the month grew 2%, or $8 billion, to $338 billion, while outlays jumped 10%, or $56 billion, to $630 billion, a record high for the month.
The month of July this year had fewer business days than last year, so the Treasury said that adjusting for the difference would have increased receipts by about $20 billion, resulting in a deficit of about $271 billion.
Gross customs receipts in July grew to about $28 billion from about $8 billion a year earlier due to higher tariff rates imposed by Trump, a Treasury official said. This data builds on tariff-related momentum in the past couple of months, as companies importing goods paid those duties.
For the first 10 months of the fiscal year, the Treasury reported a $1.629 trillion deficit, up 7%, or $112 billion, from the same period a year earlier. Receipts were up 6%, or $262 billion, to $4.347 trillion, a record high for the 10-month period, while outlays grew 7%, or $374 billion, to $5.975 trillion, also a 10-month record.