US Deficit Grows 19% in July Despite Surge in Tariff Revenue

The US government's budget deficit grew nearly 20 percent in July to US$291 billion (S$373.4 billion) despite a nearly US$21 billion jump in customs duty collections from US President Donald Trump's tariffs, with outlays growing faster than receipts, the Treasury Department said on Aug 12.

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WASHINGTON -

The deficit for July was up 19 percent, or US$47 billion, from July 2024. Receipts for the month grew 2 percent, or US$8 billion, to US$338 billion, while outlays jumped 10 percent, or US$56 billion, to US$630 billion, a record high for the month.

The month of July 2025 had fewer business days than 2024, so the Treasury Department said that adjusting for the difference would have increased receipts by about US$20 billion, resulting in a deficit of about US$271 billion.

Net customs receipts in July grew to about US$27.7 billion from about US$71 billion in the year-earlier period due to higher tariff rates imposed by Mr. Trump, a Treasury official said. These collections were largely in line with the increase in June customs receipts after steady growth since April.