The US government has collected nearly $30 billion in tariff revenue last month, a 242% jump compared to last July. Since April, when President Trump imposed tariffs on imported goods, the government has collected a total of $100 billion in tariff revenue, more than triple the amount collected during the same period last year.
However, despite the significant increase in revenue, the government’s financial situation remains uncertain. The Treasury Department manages the revenue into a general fund, which is used to pay bills such as Social Security payments. When the revenue falls short of its bills, the government borrows money to make up the difference.
The debt has grown steadily over time, reaching $36 trillion and posing economic growth concerns. Economists warn that borrowing more money leads to higher interest payments, reducing the government’s ability to invest in public goods like infrastructure projects.
Tariff revenue has caused the budget deficit to shrink, but it is not enough to offset the $1.3 trillion deficit for the current fiscal year. The White House has floated the idea of redistributing tariff revenue as ” rebate checks” to Americans, which could widen the deficit and cause inflation.
While some businesses have absorbed higher costs without raising prices, others are warning of price hikes due to tariffs. The uncertainty tied to tariffs has also caused businesses to delay hiring new workers, reducing job openings.
Experts disagree on the economic impact of Trump’s tariffs, with some arguing that they will shave half a point off US GDP this year and next. Others see it as an opportunity for the economy to supercharge in the long run, combined with recent tax cuts and spending bill.
Source: https://edition.cnn.com/2025/08/06/economy/government-tariff-revenue