US Treasury's Shifts and Tariffs: Budget Deficit Insights

The U.S. government reported a $161 billion budget deficit for March, which is 32% less than the previous year. The reduction is largely due to a calendar shift in benefit payments, while customs duties rose due to increased tariffs. Despite this, the fiscal year deficit remains substantial.

The U.S. government recorded a budget deficit of $161 billion in March, reflecting a 32% decline from the previous year. This reduction primarily resulted from a calendar shift affecting benefit payments, according to the Treasury Department's announcement on Thursday.

The report highlighted a rise in net customs duties, reaching $8.2 billion, attributed to the impact of tariff increases initiated under former President Donald Trump. However, the claim that $2 billion is collected daily from tariffs was described as exaggerated.

Customs duties, particularly from tariffs on Chinese and non-compliant North American goods, contributed to $43.6 billion in collections for the fiscal year's first half. Meanwhile, the overall U.S. budget deficit for the same period stood at a substantial $1.307 trillion, marking the second-largest mid-fiscal year deficit on record due to factors including increased spending.

(With inputs from agencies.)