Tariffs Surge to Fourth-Largest U.S. Revenue Source Amid Trade Wars

U.S. customs duties surpass $100 billion in fiscal revenue as tariffs become a major income source for the government, contributing to a surprise budget surplus. Tariffs, now the fourth-largest revenue source, are anticipated to rise further with impending tariff hikes on trading partners.

The U.S. Treasury Department reported a significant surge in customs duty collections in June, driven by President Donald Trump's escalating tariffs. For the first time in a fiscal year, these collections exceeded $100 billion, contributing to an unexpected $27 billion budget surplus for the month.

Trump has positioned tariffs as a lucrative revenue stream, despite economists arguing the burden falls on American consumers and importers. Customs duties have surged to a record $113.3 billion gross and $108 billion net across the first nine months of fiscal 2025, now representing the fourth-largest revenue source for the federal government.

The upward trend in tariffs is set to continue, with projections reaching $300 billion by the year's end. The administration is poised to impose new sector-based tariffs, with an August 1 deadline for increased rates on numerous trading partners, indicating intensifying trade tensions.

(With inputs from agencies.)