U.S. Budget Deficit Shrinks Amid Rising Tariffs Impact

The U.S. government reported a $173 billion deficit in November, down significantly from last year, largely due to tariff-boosted revenues. Outlays and receipts both showed changes influenced by customs duties and government operations, while the Congressional Budget Office revised its deficit projections.

The United States government has reported a sharp decrease in its budget deficit for November, totaling $173 billion. This is a significant drop from the previous year's $367 billion, attributed largely to increased revenues from tariffs on imports, according to the Treasury Department.

Revenue from customs duties hit $30.76 billion, lifting November's total receipts to record highs. Outlays for the month were reduced, partly due to a delay in payments following a government shutdown. President Donald Trump's tariffs have played a crucial role, although deals with trade partners have moderated some imposed duties.

The Congressional Budget Office revised its estimation of the impact of the tariffs on the deficit, reducing its previous projection by 25%. This new estimate suggests a $3 trillion reduction in U.S. budget deficits over the next decade, down from an earlier figure of $4 trillion.

(With inputs from agencies.)