The U.S. Treasury Department reported an unexpected surplus of $27 billion in June, driven primarily by a significant increase in tariff receipts.
The U.S. government posted a surplus in June, driven by a rise in tariff collections, as reported by the Treasury Department on Friday.
Amid an overall increase in government spending throughout the year, the Treasury reported a $27 billion surplus for the month, contrasting sharply with a $316 billion deficit recorded in May.
Year-to-date, the fiscal deficit stands at $1.34 trillion, marking a 5% rise from the same period last year. However, after adjusting for the calendar, the deficit has slightly decreased by 1%. The fiscal year concludes on September 30, providing three more months for adjustments.
In June, the government’s receipts rose by 13% compared to the previous year, while expenditures decreased by 7%. Annually, receipts have experienced a 7% increase, with spending rising by 6%.
This occasion marks the first instance of a June surplus since 2017, during the initial term of President Donald Trump. The boost from tariffs has been a major factor in this development.
Customs duties reached approximately $27 billion in June, increasing from $23 billion in May and reflecting a 301% rise compared to June 2024. Annually, these collections have amounted to $113 billion, marking an 86% increase from the previous year.
In April, President Trump imposed a 10% tariff on imports, in addition to other select duties, and announced a series of reciprocal tariffs on various U.S. trading partners, which are still under negotiation.
The report highlights that the month’s results benefited from calendar adjustments, without which the deficit would have been $70 billion.
High Treasury yields continue to challenge federal finances, as net interest payments on the $36 trillion national debt totaled $84 billion in June, a slight decrease from May. However, these interest payments remain second only to Social Security in terms of government expenditure. So far this fiscal year, net interest has reached $749 billion, with total interest payments expected to hit $1.2 trillion by fiscal year-end.
President Trump has been urging the Federal Reserve to reduce short-term interest rates to alleviate the financial burdens of federal debt servicing. Nevertheless, market expectations indicate the central bank may not implement any rate cuts until September. Fed Chair Jerome Powell has expressed concerns over the possible inflationary effects of tariffs.
The Congressional Budget Office projects that Trump’s recently passed spending bill could increase the national debt by an additional $3.4 trillion over the next decade.
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