U.S. Deficit Declines Despite Trade Tariffs

The U.S. government saw a significant reduction in its budget deficit, largely due to increased revenues from tariffs, as reported by the Treasury Department. The November deficit stood at $173 billion, down over 50% from the previous year. Delays in payments after a government shutdown and trade tariffs agreements are factors influencing these figures.

In a surprising turn of financial events, the U.S. government reported a significantly reduced budget deficit of $173 billion for November, reflecting an over 50% decrease compared to the same month in 2024. The Treasury Department attributed this drop partly to heightened revenues from tariffs on imports.

With customs duties contributing $30.76 billion last month, a record was set for November revenues, totaling $336 billion. These figures emerge amid ongoing negotiations and adjustments to trade tariffs under President Donald Trump's administration, which have impacted economic forecasts.

Despite these changes, the Congressional Budget Office has revised its estimates on tariff impacts, suggesting a 25% decrease in projected deficit reductions over the coming decade. The data highlights economic complexities and the role of fiscal policy in managing the national deficit.

(With inputs from agencies.)