How Trump’s Tariff Revenue Helped the Government Make Bank In June

Tariffs may be a concern for consumers, but they are starting to have a positive impact on the federal budget, data released by the Treasury Department showed.

The federal government took in more money than it spent in June, the government said today, helped partly by another increase in tariff revenues, which are now higher than they’ve been in at least a decade.

The U.S. collected $26.6 billion in tariff revenues last month, more than four times the $6.3 billion collected in June 2024. June’s receipts are also up from $22.2 billion in May, following a surge in tariff collections in April as President Donald Trump’s tariffs began to take hold.

One result of the increased tariff revenue is a $27 billion budget surplus for June. That surplus was primarily driven by an approximately $187 billion reduction in government spending for the month. The reduced spending comes amid efforts by the Trump administration to cut expenses through theDepartment of Government Efficiency and a reduction in the size of the federal workforce.

Despite June Surplus, Budget Deficit Remains High

The government still faces a substantial budget deficit that totals around $1.3 trillion for fiscal 2025, which kicked off last October.

The federal government’s total debt is around $36 trillion, and it paid $84 billion in interest payments on that debt in June. The Congressional Budget Office in June said that increased tariff collections could bring in enough money to pay for tax cuts enacted in the “One Big, Beautiful Bill” budget legislation enacted this month. 

A budget surplus can help reduce the national debt, producing potential benefits for both taxpayers and the economy. To start with, a lower debt would lead to lower interest payments for the government, meaning it would have to collect less tax revenue to cover those payments.