The US government budget deficit in July increased by almost 20 percent to $291 billion, the increase occurred despite an additional customs duty collection of almost $21 billion from tariffs implemented by President Donald Trump.
According to the Treasury Department, government spending grew faster than revenue.
The July deficit increased 19 percent or $47 billion compared to July 2024.
Receipts for the month rose 2 percent or $8 billion to $338 billion, while spending jumped 10 percent or $56 billion to $630 billion, the highest amount for the month.
In July, the difference in increases compared to last year added about $20 billion, leaving the actual deficit around $271 billion.
Net customs collections in July increased to about $27.7 billion compared to $7.1 billion in the same period last year. The increase was driven by higher tariffs imposed by Trump, in line with a pickup in June after steady growth since April.
Trump has often emphasized the billions of dollars in government coffers that his tariffs will bring in.
In addition, Consumer Price Index (CPI) data on Tuesday showed higher prices for tariff-sensitive items such as furniture, shoes and auto parts. However, this impact was offset by lower gasoline prices in the overall index.
Overall, the budget deficit for the period was $1.629 trillion, up 7 percent or $112 billion from a year ago.
Government receipts rose 6 percent or $262 billion to $4.347 trillion, a 10-month high.
