---
title: "US deficit grows to $291 billion in July despite surge in tariff revenue"
description: "Aug 12 (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."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-08-12-us-deficit-grows-to-291-billion-in-july-despite-surge-in-tariff-revenue/"
published: "2025-08-12T21:23:21"
updated: "2025-08-12T21:23:23"
lang: "en-ZA"
word_count: 190
---

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

> Aug 12 (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.

By Reuters · Published 12 August 2025, 23:23 SAST · Updated 12 August 2025, 23:23 SAST

## Key points
- July’s financial report reveals a deficit that’s ballooned by 19% to a staggering $47 billion, proving that while receipts may have climbed, outlays are on a spending spree that would make even a shopaholic blush—thanks, in part, to those tariffs that have turned customs receipts from pocket change into a hefty $28 billion.
- July's deficit surged 19% to $47 billion, with receipts rising 2% to $338 billion and outlays hitting a record $630 billion.
- Adjusting for fewer business days, July receipts could have increased by $20 billion, lowering the deficit to approximately $271 billion.
- Gross customs receipts soared to $28 billion, up from $8 billion last year, driven by higher tariffs from the Trump administration.
- The fiscal year-to-date deficit reached $1.629 trillion, a 7% increase, while total receipts hit a record $4.347 trillion amidst rising outlays.

## Content

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.

(Reporting by David Lawder)