U.S. posts surprise $27 billion budget surplus in June, boosted by tariffs

Published 11/07/2025, 20:28
© Reuters

Investing.com -- Just one week after President Trump signed the “Big Beautiful Bill” into law, the administration is celebrating again. The U.S. government posted a budget surplus for June, driven in large part by Trump’s aggressive tariff policies.

The June 2025 budget recorded a surplus of over $27 billion, the first monthly surplus since 2017. Economists had expected a deficit of $41.5 billion for the month. A key factor was the surge in customs duties, which totaled roughly $27 billion for the month. That’s up from $23 billion in May and a staggering 301% increase compared to June 2024.

So far this year, tariff collections have reached $113 billion, up 86% from the same period last year. Much of the increase is tied to the across-the-board 10% import tariffs Trump implemented in April, in addition to the targeted reciprocal tariffs on individual countries.

Despite the strong June surplus numbers, the broader fiscal picture remains challenging. The federal deficit for the year stands at more than $1.34 trillion.

Interest payments on the national debt continue to be a major burden. Net interest totaled $84 billion in June alone, and $749 billion year-to-date, making it the second-largest federal expense after Social Security. Interest payments are on track to hit $1.2 trillion for the full fiscal year.

President Trump has repeatedly called on Federal Reserve Chairman Jerome Powell to cut interest rates, arguing that lower rates would reduce debt servicing costs and “save billions.”

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